Rising costs and Chinese competition imperil Europe's car manufacturing

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Rising costs and Chinese competition imperil Europe's car manufacturing

_{//automotive-transportation.news-articles.net/co .. petition-imperil-europe-s-car-manufacturing.html}
^{Published in Automotive and Transportation on Wednesday, December 18th 2024 at 5:41 GMT by AM-online}

Europe's car manufacturers are facing mounting concerns about their long-term viability as they grapple with rising car prices and intensifying competition, according to a report from Jato Dynamics.

The article from AM-Online discusses the challenges facing Europe's car manufacturing industry due to rising costs and competition from Chinese manufacturers. It highlights how European carmakers are grappling with increased expenses in energy, raw materials, and labor, which are squeezing profit margins. Additionally, Chinese automotive companies are gaining ground in the European market, particularly with electric vehicles (EVs), where they benefit from lower production costs and government subsidies. This competition is intensified by the EU's push towards greener vehicles, inadvertently opening the door for Chinese EVs which are often cheaper and technologically competitive. The article also mentions potential trade tensions, with the European Commission investigating subsidies provided to Chinese EVs, which could lead to tariffs. This situation is putting pressure on European manufacturers to innovate, reduce costs, and adapt quickly to maintain their market share.

Read the Full AM-online Article at:
[ https://www.am-online.com/news/rising-costs-and-chinese-competition-imperil-europe-s-car-manufacturing ]

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