Just circling back to some ideas from my recent post on Europe’s auto industry future (if you missed it, catch up here). The numbers are clear: In 2023, European countries—including the UK—produced over 15% of the world’s cars, making Europe the second-largest car producer after China. Add Turkey to the mix, and that number edges close to 17%.
But here’s the kicker: Failing to transition to EVs won’t just affect market share—it will jeopardize the livelihoods of over 15 million people working in Europe’s automotive sector. With that, the social stability that Europeans hold dear could be at risk.
So, how could Europe respond?
🚧 Tariffs to protect against cheaper imports.
💰 Subsidies to prop up failing legacy OEMs.
💨 Or worse, pursuing hydrogen vehicles as a distraction.
These are knee-jerk reactions - short-term fixes for a long-term problem. The reality is that Europe doesn’t just need to defend its automotive industry; it needs to rebuild it. It has one thing going for it and two main challenges:
🚗 Design & Manufacturing Know-How: Europe still boasts some of the world’s best car designers and has deep roots in manufacturing excellence.
🔋 Battery Tech Gap: But when it comes to battery production, Europe is miles behind.
🌐 Digital Car Ecosystem: Europe lags in the software and digital integration that defines the modern EV.
What’s the Solution?
Let the legacy OEMs that can’t pivot fail. Tough? Yes. But necessary. Instead of throwing good money after bad, Europe should channel venture-style funding into automotive startups. The next Tesla or BYD won’t come from a decades-old carmaker stuck in its ways - it’ll come from a nimble, innovative startup ready to disrupt the market.
Europe has the talent. It has the infrastructure. Now, it just needs the vision to bet on the future instead of clinging to the past. 🔌🚘🌍