Bro that’s the whole reason we started they already have protectionist tariffs.
As best I see, they (EU manufacturers) are mostly profitable. Stellantis may be the exception.
Is the car manufacturer chief pleading for help ? Yes, of course, common strategy
to appeal to government for protection in all industries.Happens in every industry all the time. At some point, China with its lower labor costs, will need to be addressed for if local providers are to survive. But not sure it is now, or on life support, Seems like more exaggeration and hyperbole a this moment in time.
European carmakers remain generally profitable
, having significantly increased their margins to around 10% by 2023. However, profitability is expected to be under strain in 2025–2026 due to stiff competition from Chinese EV makers, high production costs, and weakening demand. While premium brands like BMW and Mercedes-Benz maintain strong returns, mass-market manufacturers face lower margins.
Key Factors Affecting Profitability
- Strong Margins: European car manufacturers increased their profitability from 3.7% in 2006 to 10% in 2023.
- Upcoming Challenges (2025-2026): Profitability is expected to face pressure due to a shift towards lower-margin, mass-market EVs and intense competition, as reported by Forbes and Yahoo Finance.
- EV Transition and Costs: The high cost of transitioning to electric vehicles (EVs) and meeting strict EU CO2 regulations is impacting profitability, with some reports suggesting that by 2030, regulations could significantly reduce profits, according to Kearney and CNBC.
- Regional Competition: Chinese competitors and trade tensions (e.g., U.S. tariffs) are putting pressure on German manufacturers in particular.
- Strategic Shifts: To maintain profitability, manufacturers are shifting towards higher-margin, premium vehicles, as noted by Transport & Environment and Reuters.
Despite the challenging environment, companies like Volkswagen and BMW continue to generate significant profits, supported by high-margin luxury models.
Sarcasm
Cradle to grave.
If you haven’t bought an EV pickup, it makes you anti-pickup, anti-EV, and probably anti-Rivian?
Also, you’re anti-every vehicle you don’t own.
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Didn’t forget if it’s not a legacy domestic anti-American. Might as well be vehicular ANTIFA
So is this impacting ICE sales as well ? Part of it is no doubt the scaling back
of China subsidies, much like what happened in the US. Large demand before
a program ends and the months after suffer.
I’ve seen some headlines that China is worried about job losses due to AI too.
Is that a factor in the lower demand too ?
BYD doing so bad that it passed Ford in sales for 2025…
https://www.autoblog.com/news/chinas-byd-overtakes-ford-in-global-sales-for-the-first-time
BYD only makes EVs and plugin hybrids.
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Electric vehicles recharge at a power substation. 1909.
if electric vehicles were so great in 1909, why did they stop ? right, they weren’t competitive. helps a lot when everyone else helps to pay for them.
How do you convince an entire population that if we don’t switch to a sustainable energy economy then the entire industrial ecosystem will collapse
Oh wait you can’t because human beings are biologically designed to deal with problems that are long term
i wish we could make that switch too.
You’re comparing 1909 battery technology to 2026 battery technology ?
Just wow…unless you have been asleep for last 120 years of development.
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You’re comparing 1909 ICE vehicles to 2026?
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That directed to me ?
Of course not; that would be unwise. Of course the basic chemistry and concept in ICE vehicles has not fundamentally changed. Chemical power from fossil fuels.
But we are getting off topic discussing ICE 1909 vs ICE 2026. Irrelevant to thread.
So people are hating on Tesla because Elon is a Nazi, and instead are buying VWs, which is an actual Nazi car. Okay.
As was Mercedes
No, I think that’s an incomplete summary on the complete anti-elon sentiment. Though he and his twin Grok support and occasionally
support antisemitism; I think it’s more his getting into politics and funding politics is what
drives people away. And one fugly looking truck and no new models. And fact there is
competition available too.
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