Why all European car manufacturers will soon become Chinese
- October 26, 2022
- 0
The exodus of automakers from the Old World is a predetermined problem and it seems it has already been solved. But where will the brands known to Russians
The exodus of automakers from the Old World is a predetermined problem and it seems it has already been solved. But where will the brands known to Russians go and why is their relocation extremely important for us consumers of car transporters? Is it worth waiting for the full “establishment” of the domestic market, and is it as bad as it seems at first glance? The AvtoVzglyad portal answers these and other questions.
The European economy can no longer afford to produce such complex and multi-component household items as cars. Industrial inflation (45.8% in Germany), driven by high gas and electricity prices, not only burns all profits, but also significantly increases the “exit price”. To understand the numbers, there hasn’t been a jump like this since 1949. And yes, they are not taken from Channel One or RT, but from the official report of the German Federal Statistical Office. Add a 39 percent increase in fuel prices to the original equation and we see that Europeans will significantly reduce not only the purchase of new cars, but also the traffic of existing cars. For connoisseurs of the “green economy” in general and electric cars in particular, electricity has increased in price by 259.8% in Europe.
For car manufacturers, this alignment means only one thing: conveyor belts must be closed. And the faster, the better. Every day – at a loss, gains are not visible, even in the long run. The state will provide subsidies, but not for as long and not as much as we would like. Help to survive, develop – no. The last Paris Motor Show showed that the Chinese are already offering more and better, it will not work to compete with them even in the domestic market. Not for nothing, the wise and experienced Carlos Tavares, the head of Stellantis, literally screamed like a glass of water about eastern expansion. A holy place is never empty.
To reverse the emerging trend, you need to change the geolocation. The United States wholeheartedly welcomes the move, but the domestic market is now also far from reference liquidity: the promotional spike in the market is turning into a well-known symbol, referred to in Russia as the “fig”, gasoline is becoming more and more expensive, and the Democrat and Republican bickering ahead of the midterm elections threatens to bring down the already precarious structure of the US economy. New Zealand and Australia will never export such a volume. Japan? They hardly care about that. Rest of Asia? Malaysia/Indonesia is ruled by the Japanese, who will not give up theirs no matter how many preferences and tandems you promise. Only China remains. BMW has already sent its English production there and soon all the others will be pulled.
China is attractive with a relatively cheap labor force, much more balanced raw material prices and a huge market. Another question is that the Celestial Empire will not be able to handle a multiple increase in production. There is little hope for America: China has very tense relations with it. This means that it will be necessary to quickly and efficiently saturate the neighboring “territories”, especially India and the huge space between Estonia and Mongolia. Will anyone remember sanctions, restrictions, etc.? No, and judging by the confident steps of Secretary General Xi Jinping again, this will be one of the preconditions for “relocation”. Because in China they know how to count money, and the only thing that the ‘heavenly’ business hasn’t bought from Europe yet are the brands themselves. Well, there is also a chance to fix this. Cheap.
Photo: elpais.com
The European economy can no longer afford to produce such complex and multi-component household items as cars. Industrial inflation (45.8% in Germany), driven by high gas and electricity prices, not only burns all profits, but also significantly increases the “exit price”. To understand the numbers, there hasn’t been a jump like this since 1949. And yes, they are not taken from Channel One or RT, but from the official report of the German Federal Statistical Office. Add a 39 percent increase in fuel prices to the original equation and we see that Europeans will significantly reduce not only the purchase of new cars, but also the traffic of existing cars. For connoisseurs of the “green economy” in general and electric cars in particular, electricity has increased in price by 259.8% in Europe.
For car manufacturers, this alignment means only one thing: conveyor belts must be closed. And the faster, the better. Every day – at a loss, gains are not visible, even in the long run. The state will provide subsidies, but not for as long and not as much as we would like. Help to survive, develop – no. The last Paris Motor Show showed that the Chinese are already offering more and better, it will not work to compete with them even in the domestic market. Not for nothing, the wise and experienced Carlos Tavares, the head of Stellantis, literally screamed like a glass of water about eastern expansion. A holy place is never empty.
To reverse the emerging trend, you need to change the geolocation. The United States wholeheartedly welcomes the move, but the domestic market is now also far from reference liquidity: the promotional spike in the market is turning into a well-known symbol, referred to in Russia as the “fig”, gasoline is becoming more and more expensive, and the Democrat and Republican bickering ahead of the midterm elections threatens to bring down the already precarious structure of the US economy. New Zealand and Australia will never export such a volume. Japan? They hardly care about that. Rest of Asia? Malaysia/Indonesia is ruled by the Japanese, who will not give up theirs no matter how many preferences and tandems you promise. Only China remains. BMW has already sent its English production there and soon all the others will be pulled.
China is attractive with a relatively cheap labor force, much more balanced raw material prices and a huge market. Another question is that the Celestial Empire will not be able to handle a multiple increase in production. There is little hope for America: China has very tense relations with it. This means that it will be necessary to quickly and efficiently saturate the neighboring “territories”, especially India and the huge space between Estonia and Mongolia. Will anyone remember sanctions, restrictions, etc.? No, and judging by the confident steps of Secretary General Xi Jinping again, this will be one of the preconditions for “relocation”. Because in China they know how to count money, and the only thing that the ‘heavenly’ business hasn’t bought from Europe yet are the brands themselves. Well, there is also a chance to fix this. Cheap.
Source: Avto Vzglyad
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
