Like the proverbial Swan, looking serenely in control but working hard below the waterline to escape possible predators, the European auto industry gives off healthy vibes.
The trouble is Europe’s industry can’t produce EVs cheaply enough to encourage demand. But the Chinese can and are gearing up to threaten the weakest incumbents. Within a decade, Tavares foresees consolidation down to five or so global giants, naturally including Stellantis. “Competitive pressure on EV pricing and technology is fierce and is now expanding beyond Tesla and growing Chinese imports,” the bank said in a report.
· The race for “affordability” in the mass-market segment is rekindling the debate about platform sharing and partnerships with smaller makers like Renault benefitting most.