Electric Vehicle Transition Strains European Auto Industry

Job cuts, declining sales, and competition from China challenge Europe's push for decarbonization by 2035.

Volkswagen plans to cut 35,000 jobs in Germany by 2030, citing cost reductions and production shifts to low-cost regions like Mexico.
Electric vehicle sales in Europe declined by 3% in 2024, the first drop in four years, falling short of EU emissions targets and risking penalties for automakers.
French vehicle production hit a 60-year low in 2024, with less than a million cars manufactured, exacerbating economic instability in the sector.
Chinese automakers, with competitive pricing and advanced battery production, are gaining a foothold in the European market, intensifying pressure on local manufacturers.
Critics argue that inconsistent policies and high costs of electric vehicles have alienated consumers, with 62% of French respondents expressing skepticism about the transition.