Overview

• German automakers have reported steep profit declines and initiated significant workforce cuts as electric vehicle transition costs escalate.
• Bank of America’s “Car Wars” analysis warns of recurring billions-euro write-offs for EV programs and predicts delays in new electric model launches.
• A Baker Tilly survey shows 67 percent of German auto suppliers expect fewer industry competitors in two years, with 51 percent citing Chinese firms’ technological lead.
• Chronic overcapacity in China has driven average vehicle prices down by about 19 percent and prompted calls for U.S. import tariffs on Chinese vehicles.
• Vehicle software and connectivity services represent a roughly $2.4 trillion opportunity, offering automakers vital revenue streams beyond traditional sales.