Volvo CEO warns European auto industry faces Detroit-like risks

Volvo CEO Håkan Samuelsson has warned that the European automotive industry could face a fate similar to Detroit, USA. In an interview with the German newspaper Handelsblatt, Samuelsson noted that current developments in Europe mirror the period when Detroit-based manufacturers moved production to the southern United States to reduce costs related to energy, taxes, and labor.

Samuelsson highlighted that while moving to regions with labor costs less than half of Detroit's provided short-term savings, it ultimately contributed to the city's economic erosion and its 2013 bankruptcy. He emphasized that reducing energy and labor costs is essential for maintaining European industrial competitiveness and suggested increasing factory working hours.

The warning comes as the European automotive sector faces mounting pressure from rising production costs, global competition, and rapid technological shifts in the industry.