PARIS: European automakers are urging policymakers to do more to help them cope with Chinese competition and the shift to electric vehicles (EVs), as a drop in third quarter deliveries at BMW and Stellantis underscore the pressure on the industry.
Europe’s mass-market car industry is under “enormous pressure”, Volkswagen chief executive officer (CEO) Oliver Blume told an event taking place alongside the Paris motor show, renewing calls for more flexible regulation and incentives to support local manufacturing.
The European Union announced a deal last Friday that could cut Chinese exports of hybrid vehicles to the bloc by more than a half, addressing concerns among European automakers that Chinese rivals, grappling with weak demand at home and largely shut out of the US market, could flood Europe with low-cost cars.
While broadly welcoming the deal, European manufacturers said policymakers need to do more to help them compete, including tackling high energy costs and supporting the transition to EVs.
Stellantis CEO Antonio Filosa said Europe needed more EV battery factories.
Renault’s CEO Francois Provost, meanwhile, warned the company may have to cut European production by about 300,000 vehicles if policymakers do not show flexibility over 2030 targets for automakers to cut carbon emissions.
The pressure on European carmakers was highlighted by BMW, which reported a 6.4% drop in global deliveries in the third quarter as sales in China fell by a quarter.
Stellantis, meanwhile, said third quarter shipments fell 1%, hit by a summer production shutdown in North America.
One bright spot was a 10% rise in European shipments, helped in part by vehicles from Chinese partner Leapmotor, highlighting the industry’s complex relationships as European and Chinese manufacturers compete fiercely while also tapping each others’ expertise. — Reuters
