European auto industry faces crisis from investment cuts and strategic failures

European automotive industry Allianz Trade study investment reduction electric vehicle transition Chinese competition

A study by Allianz Trade warns that the European automotive industry is facing a crisis driven by its own strategic decisions. The report indicates that manufacturers have reduced investments by approximately 20 percent this year, a trend that contrasts with large European companies in other sectors, which increased investments by 10 percent.

Economists attribute this decline to a 'boomerang effect' resulting from two decades of prioritizing short-term profits and shareholder dividends over essential transitions to electrification and digitalization. This has led to a critical technological gap between European brands and Chinese competitors, particularly in battery innovation and software-defined vehicles.

The economic impact is already evident, with the added value per vehicle sold in Europe falling by 30 to 45 percent over the last five years. Additionally, the presence of European exhibitors at the Paris Motor Show has declined to just 40 percent, signaling a loss of industry dominance.

Entities

Allianz Trade · Guillaume Dejean · Paris Motor Show

Claims

What the coverage asserts, and how many sources carry each claim.

[● 6 SOURCES] European automakers reduced investments by approximately 20 percent this year. n1info.rs · trn.mk · www.biznis.ba · fr.businessam.be · sputnikportal.rs · +1 more
[● 6 SOURCES] The current capital allocation issues are a 'boomerang effect' of decisions made over the last two decades. n1info.rs · trn.mk · www.biznis.ba · fr.businessam.be · businessam.be · +1 more
[● 3 SOURCES] Added value per vehicle sold in Europe has fallen by 30 to 45 percent over the last five years. n1info.rs · www.biznis.ba · sputnikportal.rs
[● 6 SOURCES] European manufacturers prioritized short-term profits and dividends over electrification and digitalization for two decades. n1info.rs · trn.mk · www.biznis.ba · fr.businessam.be · sputnikportal.rs · +1 more
[● 6 SOURCES] Large European companies in other sectors increased investments by 10 percent this year. n1info.rs · trn.mk · www.biznis.ba · fr.businessam.be · sputnikportal.rs · +1 more
[● 3 SOURCES] The share of European exhibitors at the Paris Motor Show has fallen to 40 percent. n1info.rs · www.biznis.ba · sputnikportal.rs