Europe's auto industry: Red alarm level - need for action now!
Europe's auto industry: Red alarm level - need for action now!
The European automotive industry is under pressure: A Acredia report warns of a dramatic decline in competitiveness. According to Gudrun Meierschitz, the director of Acredia Versicherung AG, Europe could lose its leadership claim in the global automotive market unless urgently invested in innovation and electromobility. At the moment, the global car market only increases moderately by 1.7 percent, while Europe with a maker remains growth of only 1.5 percent. These developments are alarming because China and the USA are increasingly relying on strategic support, while Europe is plagued by production costs and customs conflicts. "It is time for a strategic change of course," says Meierschitz.
The situation in the area of electromobility is particularly threatening: Europe has falling sales in electric vehicles, while China shines with 40 percent growth. Acredia is concerned that the European auto industry urgently has to open up new markets and invest in domestic production in order to strengthen the wall towards Asian competition. In addition, a 10-point plan is required, which includes investments in charging infrastructure and battery technology, among other things, to ensure innovative approaches to vehicle production. Acredia calls for ten percent of sales to invest in research and development and at the same time open up new markets in India and South America.increase in corporate insolvencies
The economic challenges are also noticeable in the bankruptcy. A current report by Acredia predicts an increase in corporate bankruptcies in Austria by 9 percent for 2024, which continues the increasing trend in recent years. In 2023, 5,380 companies registered bankruptcy, an increase of 13 percent compared to the previous year. This development is due to weak economic prospects and persistent inflation. "The resilience of the companies will be put to the test this year," warns Meierschitz. The construction and trading sectors are particularly affected.
The trend forecasts also indicate that this crisis affects not only Austrian companies, but also companies in neighboring countries, which further increases the economic tensions in Europe. "Without quick solutions to the structural problems, the insolven waves in Austria and elsewhere could increase dangerously," said the experts from Acredia. The complete insolvency forecast is here href = "https://www.ots.at/presseaus-sung/ots_20250217_ots0012/acredia-europa-lert-markt-in-der-electromobilitaet"> this link can be downloaded.
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