Luca de Meo, president of the European Automobile Manufacturers Association ACEA and head of the Renault Group, used dramatic figures to show at the Vienna Electric Days why the European car industry is currently lagging behind the Chinese. In short: the Chinese are faster and cheaper.
The information De Meo presented in Vienna makes it clear why China is currently in the fast lane and Europe is at a dead end: the development time for new cars in the Middle Kingdom is only two years. And there is a cost advantage for electric cars of 25 percent. Suppliers like BYD control a large part of the value chain themselves, others like Xiaomi score points with the networking of smartphone technology and cars.
It is the Chinese who define the new rules
According to De Meo, it is important for Europeans to rely on their own strengths and at the same time learn from the new players in China, especially in terms of development speed and software: “The automotive industry has been a pillar of European prosperity for 150 years. Today, we have the responsibility to look at the facts to make the right diagnosis and find solutions. The focus has shifted to China. It is the Chinese who are defining the new rules. They come with an appetite and a passion that should inspire us.”
There should be no illusions. De Meo: “The transition to electric vehicles will be a challenge. Europeans must do their best by unleashing innovation, tackling the competition problem and, above all, playing as a team.”
At the opening of the Elektro Tage on Heldenplatz in Vienna, event organizer Andreas Martin from Porsche Media, Minister of Economic Affairs Martin Kocher and City Council Member for Finance Peter Hanke were present to take a look into the future. Hans-Dieter Pötsch, Chairman of the Supervisory Board of Porsche Holding Salzburg and Gernot Döllner, Chairman of the Board of Management of Audi AG, were also present.
Study: Eliminating internal combustion engines could cost up to 46,000 jobs
Business representatives held a small counter-event to Electric Days on Thursday. The EU is moving toward a ban on combustion engines from 2035. According to a new Economica study commissioned by oecolution, around 46,000 jobs are at stake in Austria.
Because an added value of 40.1 billion euros and a total of 430,000 jobs depend on the automotive industry. “This goes beyond just the energy industry or the food trade,” says economist Christian Helmenstein. A phasing out of combustion engines and more electricity would not wipe out this industry, but Helmenstein emphasizes: “Depending on the future scenario, the declines amount to between 0.8 and 4.1 billion euros in added value and between 9,100 and 45,900 jobs.”
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.
