That European carmakers were going to struggle with the transition to electric vehicles was a given. New, native EV entrants such as Tesla and BYD were always likely to make inroads, leading to share losses for traditional incumbents. The bad news is that a delayed transition is not proving any easier to navigate.
That was the message emerging from the industry this week. Take Volvo Cars’ decision to water down its 2030 target to go full plug-in electric. This highlights how expectations on the speed of EV take-off have changed. More expensive cars, plus a dearth of charging infrastructure have conspired to slow global growth rates. In Europe, where subsidies have been cut, sales have actually gone into reverse in the past few months.
But this delay offers no respite for traditional automakers. Their plight is epitomised by Volkswagen, which is considering shutting factories in Germany for the first time in its 87-year history. This comes after the announcement of the potential closure of a Belgian plant over the summer.