Resilinc Special Report

European Car Crisis: Automotive Supply Chain Challenges

This special report examines the ongoing crisis in Europe’s automotive industry, with a focus on the biggest automotive supply chain challenges. Declining sales, rising production costs, the accelerating transition to electric vehicles (EVs), and a skilled labor shortage have intensified pressures, while global competition from Chinese EV manufacturers and automotive supply chain disruptions challenge the sector’s resilience.
The report explores key strategies to address these issues, including fostering local battery production, diversifying supply chains, and enhancing workforce development.
Key Insights:
  • By 2032, projections show Europe's share declining further to 19%, while China's share is anticipated to grow to 34%, and North America's share is expected to rise to 16%
  • 100,000 Volkswagen employees staged protests across nine German plants on December 3, 2024. The industry faces growing tensions between automakers and labor unions amid cost-cutting measures
  • The potential imposition of U.S. tariffs, up to 25% on imports from Mexico, and China's consideration of taxes on imported gasoline vehicles amplify uncertainty for the European automotive sector