European automakers seek support as VW warns of enormous pressure

• BMW reported a 6.4% drop in global Q3 deliveries with China sales falling 25%, while Stellantis shipments declined 1% due to North American production shutdowns
• Renault warned it may cut European production by 300,000 vehicles if policymakers don't show flexibility on 2030 carbon emission reduction targets
• The EU recently reached a deal with China to address concerns about Chinese rivals flooding Europe with low-cost hybrids and EVs, though automakers say more support is needed including addressing high energy costs

European Automakers Seek Government Support Amid Mounting Pressure from Chinese Competition

European automakers are urging policymakers for increased support to counter Chinese competition and facilitate the transition to electric vehicles, as industry pressures intensify. Volkswagen CEO Oliver Blume warned that Europe's mass-market car industry faces "enormous pressure," emphasizing that profitability cannot rely solely on exports and that Europe's industrial base must be secured.

Key Performance Indicators:

• BMW reported a 6.4% drop in Q3 global deliveries, with China sales falling 25%
• Stellantis experienced a 1% decline in Q3 shipments, impacted by North American production shutdowns
• Renault CEO warned of potential cuts of approximately 300,000 vehicles in European production without regulatory flexibility on 2030 carbon emission targets

Industry Demands:

Automakers are calling for more flexible regulations, incentives for local manufacturing, reduced energy costs, and additional EV battery factories. These requests come despite a recent EU-China agreement projected to reduce Chinese hybrid vehicle exports to Europe by over half.

Market Dynamics:

The Paris Motor Show highlighted complex industry relationships, with European manufacturers both competing against and partnering with Chinese rivals. Stellantis' European shipments rose 10%, partly aided by vehicles from Chinese partner Leapmotor. Chinese manufacturers are gaining ground by combining advanced technology with competitive pricing, while European brands are leveraging heritage—Stellantis unveiled an electric Citroën 2CV, and Volkswagen's electric Polo draws on the Golf's 1980s legacy.

The situation underscores the critical challenge facing European automakers: maintaining competitiveness and profitability in their home market while managing the costly EV transition and intensifying Chinese competition.