Europe is significantly behind its global competitors – this was the assessment of the top managers of Upper Austrian industry on Tuesday in Linz. Stefan Pierer also expressed his concerns. The KTM owner and chairman of the Upper Austrian Industrial Association spoke about cost disadvantages and his concerns about tariffs on electric cars from China.
He recently had to make cuts with his group of companies around the motorcycle manufacturer KTM; His name is loudly associated with Rosenbauer’s search for investors: Stefan Pierer.
On Tuesday, the entrepreneur invited local top managers as chairman of the Upper Austrian Industry Association to a reception in the Kepler Hall of the JKU in Linz, where there was a lot of discussion.
“Europe is still a power, but if we keep playing it will soon no longer be the case,” said Markus Beyrer, managing director of BusinessEurope. “The general conditions for Europe have deteriorated dramatically,” confirmed Pierer, who spoke of the enormous cost pressures: in terms of personnel – and in terms of energy.
“Energy costs have fallen”
“Energy costs have fallen compared to other parts of the world,” says Pierer, who looks to Asia. “Especially in the vehicle and machine building industry, we face enormous competition from China, which has been catching up in terms of quality and productivity – with significantly lower costs and significantly higher annual working hours. We are no longer better by what we cost more. China is at least on par in terms of technology and is flooding us with exports.”
“You don’t have to be surprised…”
What does he think of the EU’s planned tariffs on electric cars from China? “Rates are never good. Products become more expensive for the end consumer. If tariffs come, don’t be surprised if major German car companies come under fire.” His advice: “There is huge financing in China, that won’t change, but talking brings people together.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
