EU lags behind

Why China is threatening the European car industry

Manufacturers such as BYD control a large part of the value chain themselves, while others such as Xiaomi score points with the networking of smartphone technology and cars.

(Bild: BYD)

Luca de Meo, President of the European Automobile Manufacturers' Association ACEA and head of the Renault Group, used drastic figures at the Vienna Electric Days to show why the European car industry is currently lagging behind the Chinese. In short: the Chinese are faster and cheaper.

The information that de Meo presented in Vienna makes it clear why China is currently in the fast lane and Europe is at a dead end: the development time for new cars in China is just two years. And there is a cost advantage of 25 percent for electric cars. Suppliers such as BYD, for example, control a large part of the value chain themselves, while others such as Xiaomi score points with the networking of smartphone technology and cars.

The Chinese are the ones defining the new rules
According to de Meo, it is important for Europeans to rely on their own strengths and at the same time learn from the new providers from China, particularly when it comes to development speed and software: "The automotive industry has been a pillar of European prosperity for 150 years. Today, we have a responsibility to look at the facts in order to make the right diagnosis and find solutions. The focus has shifted towards China. The Chinese are the ones defining the new rules. They come with an appetite and a passion that should inspire us."

Luca de Meo, President of the European Automobile Manufacturers' Association ACEA and head of the Renault Group, spoke plainly.

(Bild: Barbara Nidetzky)

There should be no illusions, he said. De Meo: "The transition to electric vehicles will be a challenge. Europeans must do their best by unleashing innovation, tackling the competition problem and, above all, by playing as a team."

Andreas Martin, organizer of the Vienna Electric Days, Minister of Economic Affairs Martin Kocher, Burghauptmann Reinhold Sahl and Vienna's City Councillor for Finance Peter Hanke (from left)

(Bild: Martin Nussbaum)

Weekend events canceled
At the opening of the Elektro Tage at Vienna's Heldenplatz (due to bad weather, however, the weekend events have already been canceled and it is doubtful whether they will take place on Friday), organizer Andreas Martin from Porsche Media was joined by Economics Minister Martin Kocher and City Councillor for Finance Peter Hanke to take a look into the future. Also present were Hans-Dieter Pötsch, Chairman of the Supervisory Board of Porsche Holding Salzburg and Gernot Döllner, Chairman of the Board of Management of Audi AG.

(Bild: APA/Oliver Berg)

Study: the end of the combustion engine could cost up to 46,000 jobs
Business representatives held a small counter-event to the Electric Days on Thursday. The EU is heading towards a ban on combustion engines from 2035. According to a new Economica study commissioned by oecolution, up to around 46,000 jobs are at risk in Austria as a result.

This is because value added of 40.1 billion euros and a total of 430,000 jobs depend on the automotive industry. "That's more than the energy industry or the food trade," says economist Christian Helmenstein. A phase-out of combustion engines and more electric vehicles would not wipe out this industry, but Helmenstein emphasizes: "Depending on the future scenario, the declines are between 0.8 and 4.1 billion euros in added value and between 9,100 and 45,900 jobs."