European Auto Industry Turns to China for Survival Amid Crisis

European car manufacturers are confronting a sharp decline in sales and rising competition from Chinese producers. Companies such as Stellantis are exploring joint ventures with Chinese firms like Leapmotor and the state‑owned Dongfeng to keep factories operating and safeguard thousands of jobs. The Fiat plant in Cassino, Italy, exemplifies the strain, running at a fraction of its 300,000‑unit capacity and relying on short‑term work schemes for its workforce.

In parallel, Europe’s push to develop e‑fuels for the shipping sector is lagging. While 69 projects have been announced, only six are currently producing fuel, leaving the EU behind China, which is rapidly building new facilities. Analysts warn that without targeted financing and clearer policy goals, the EU may have to import e‑fuels, limiting the anticipated gains for the automotive supply chain, energy security and job creation.

Turkey is positioning itself as a potential new hub for automotive investment. Leveraging its long‑standing integration into the European supply chain and a sizable pool of Turkish engineers embedded in German manufacturers, the country aims to attract production and component manufacturing as firms diversify away from China.