Do they follow the US path of ever increasing tariffs and software bans.
Or the China path of joint venture with Chinese automakers in Europe which would allow them to learn how to build better batteries and electric cars.
Doing nothing is not an option.
Meanwhile, in the US, the move is retrograde, shun EVs and go all in on ICE.
Steve
The combination of high labor costs and now high energy costs make the auto industry vulnerable in Europe. They also have strong unions and high expectations for expensive govt safety net benefits. Low cost auto imports are clearly a threat.
Unless voters and unions are willing to accept less, tariffs are the most likely solution.
Meanwhile declining birth rates reduce available manpower but growing opposition to immigration imposes limits in that aspect too.
It’s a challenging time for economies in Europe. Can leaders find the right path?
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There was a similar thread at SeekingAlpha. I suggested to a German poster that VW should do like Tesla, increase wages by way of stock options instead of higher wages. The business logic is that the market is paying for the options via stock dilution instead of reducing VW’s cashflow. He didn’t like it, he put up a bunch of objections.
The Captain
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