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The Conversation
The Conversation
Francesco Grillo, Academic Fellow, Department of Social and Political Sciences, Bocconi University

Three strategies to help European carmakers regain their edge

European Union Donald Trump Europe FIAT Stellantis Tesla Inc. Volkswagen United States BYD Renault
sylv1rob1/Shutterstock

Even before US president Donald Trump announced a 25% tariff on all imported cars, European automakers had been facing a multitude of challenges. Sales have slumped and manufacturers face rising costs, while Chinese rivals have rapidly been gaining market share.

The day before the tariffs announcement, the combined market capitalisation of Europe’s five major automakers (Volkswagen, Stellantis, Mercedes-Benz, BMW, and Renault) stood at around US$212 billion (£159 billion). This total is less than a quarter of the value of Tesla alone.

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