European auto struggling amid cost crisis and uneven transition

From Stuttgart comes the halt to Mercedes investments in Germany, which opens the door to plant closures, while Porsche cuts production but pushes on the high-end segment. The outlook is bleak: cost crisis, union tensions, weakening demand, and fierce international competitors. Europe appears to suffer from a two-speed market: on one side stagnation and rising raw material and chip prices as indicated by Stellantis, on the other the growth of BEV registrations up to 23%, but with stark disparities between countries. The uneven distribution of charging infrastructure reveals a clear structural weakness, while the European energy cost continues to be a Achilles’ heel compared to the USA and China. Europe can no longer be content with chasing: bold industrial decisions, immediate simplifications, and a unified political vision are needed to avoid being crushed in a global battle where the challenge is no longer only about electric motors, but also about geopolitical agreements, investments, and digital innovation. 2030 is not around the corner, but it marks the decisive milestone. It remains to be seen whether Europe will finally manage to change pace or end up stuck in the emergency lane, watching as an electric revolution is driven by others.