What's behind Europe's car industry crisis? | Ed Conway analysis
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- Опубликовано: 10 фев 2025
- The EU and UK car industry is in a state of turmoil as it struggles with transitioning to the manufacture of electric vehicles.
Sky's Ed Conway delves into the crisis and explains how China has come to dominate the EV car market and looks at whether the auto industry here can compete.
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Car that cost £35000 two years ago now cost £52000. That’s the problem.
This is the reason, I've been an Audi, VW owner for 30 years but the prices now days just disgusting me and the price of the Korean and Chinese cars are turning me. Their quality is just as good.
@@Dave-HChinese cars aren't as good. I've had a lot of cars and in terms of reliability a VW or Toyota are way ahead. German cR companies are not operating on a level playing field especially since they lost access to cheap energy.
@@johnboy14the experts such as Sandy Munro and others state Chinese ev cars are better.
@@Dave-HGolf GTI gone from £29-32k to £37k basic model
If the future is electric and no longer about combustion engines with German ingenuity, China becomes the best option-controlling raw materials, offering great quality, and doing it all at half the price. The decline started with 'green' policies from the government, subsidizing Teslas using German taxpayers’ money and pushing the idea that the German auto industry should pivot to developing their own electric cars. This shift was driven by the arrogance of believing that, as an automotive superpower, Germany could easily transition from combustion engines to electrics and once again dominate the global market.
But here's the reality: no one cares whether an electric car is made in Germany, China, or the USA. The only things that matter are range and price; all other aspects are dictated by global standards. German cars have always adhered to climate regulations, yet politicians, in their arrogance, failed to understand the emotional connection that drives someone to buy a BMW M3-the engineering, power, engine sound, elegance, and status-all the things that ignite passion between machine and driver. This is a fundamental misunderstanding of how the business truly works.
Yes, when the likes of a Fiat 500 Electric starts at £30,000 whilst salary's have been relatively stagnant for well over a decade.
yeah it's the same deal in most developped countries too. Our salaries are really trailing behind inflation. Cars' prices, although higher than ever, are actually lower with regards to inflation...EVs aside. We desperately need cheaper battery technology, developped and manufacturered locally.
Get a new Mustang, Wrangler, or something in the US for that price.
There is a Chinese electric car made in a JV with General Motors that costs $4000
@ well those are the sort of products we need to be avoiding here. We have to drive down the prices of locally manufactured EVs.
Who wants an EV?
I like how their solution to the problem is to make the end product more expensive to the consumer
Yes, thats the only way they can say GDP is increasing and increase their tax revenues. In reality, we are day by day being taken over.
Which British company is top in any industry?
ARM @@davincii999
Spot on. The UK has beccome a lazy, welfare dependant country.
@@davincii999hsbc
@@davincii999 ARM
The bit missed here...
1) China is now the largest market for cars in the world (consumers)
2) European cars used to be prestige which is crucial to how Chinese consumers purchase.
3) Then Chinese consumers realised that European cars were miles behind is prestige - were low tech, just not good enough.
4) Suddenly European cars sales in China fell off a cliff, several manufactures are closing up in China -
5) Americans think they produced the best cars in the world - they don't they are poor - no double seals on doors etc.
6) European cars were seen as quality - now BMW (for example) use plastic crap in their engines.
7) Europeans/Americans calls Chinese cars crap - and suddenly the American/European car makers found out the hard way they are not.
Only 1/4 of China's export are EVs, all the other are ICEs. EV is a lame excuse. It's not just EV, it's everyting.
Chinese cars are crap. I’ve had two. Never again. European cars are the best in the world, by far. It’s not even close.
Double sealed doors? 😂 that’s the difference is it…
Only 1/4 of the export are EVs, all the other are ICEs. EV is a lame excuse.
@@tamoc2354 agreed on this article. But ev sales in China is more than 50% domestically, they don't need the export market yet as the domestic is not saturated
Their wages are only 1/4 or 1/5 of the west. The playground will not be levelled untill making them rich again. Tariff does not solve anything, it just makes the situation worse.
UK car industry? This still exists?
We build some Vauxhall vans in Luton, well for a little while longer anyway…
Yeah it’s called jaguar….. and it’s the future…. Apparently 😂
They assemble vehicles for the local market.
@@Itssoconfusing jaguar is indian we moved its production to india
"...This still exists?" no, not in any competitive production way, still a few specialist design and manufacturing operators though.
When I was in China I saw at least 20 different EV car brands, not models. And the funny thing was that their gas station petrol price was less than half than here.
Even the USA has cheaper petrol and diesel, in Europe more than 50% is taxes
Well, taxes are a necessity sometimes. The American road infrastructure is underfunded due to non indexed gas tax. It doesn't have to be like how much the Dutch are taxing their fuel, but it can be more.
Arrogance and complanceny always ends bad!!!
The Greeks knew it. Hubris and Nemesis.
Just need tarrif protectionisms now 😂
Spot on.
Unfair government practices of China are now "Arrogance " of the other.🤡
yeah, there are only idiots in the management. Unreal how the best leaders always end up being dumbasses and making bad decisions.
I inspected a couple of BYD cars a couple of months ago whilst in Portugal. I had no idea what to expect - in short I was blown away. I instinctively knew right there and then that the legacy car makers of Europe were in trouble from a car maker that didn't even exist a few years ago.
This really made me laugh "the OECD, which is the developed world", then the video proceeds to explain how Chinese car manufacturers are more developed.
Welcome to the EUROPEAN journalism 🤣🤣
Hahaha 😂😂
“Developed world” 😂😂😂
China is way ahead of any western economy in terms of development
@@kjoshy8China is still made up by a huge number of peasant farmers, there are two economies.
@@kjoshy8 tofu construction lol
Zero industrial strategy and lack of investment in science and technology. Corruption and random wars doesn’t help.
massive agreed. well said
When a basic small car now costs in the region of £20000, theres your answer why the car industry is failing. There may be a whole lot more company profit in building more expensive vehicles, but if no one can afford them what is the point?
millennial and zoomers still living with parents in walkable cities - buying cars , hell even having a licence - is a low priority .
The vehicle cost is the same really - it just costs more money. Inflation of prices but your salary has stayed the same for the last 10 years.
@@BAmalakassalary has increased allot last couple years
@@Beyonder1987 not as much as inflation
@@Beyonder1987 ask the question why so steap in such less time ?
My consensus from this is that the UK is an absolute clusterfuck at the moment and no one is doing anything about it!
I don’t agree with your last point. People are doing things. A lot of it is simply not reported or can’t be reported. I’m not saying they’re doing the right thing, only time will tell and TBH, I can’t think of a single “western economy “ that is getting it right. Lest we forget China has some major economic problems of its own, so let’s not hold them up as “the right way to do everything “. Take care. 👍
They are doing things. They've made it much harder to start up a company and more expensive to employ people.
@@richardwild-jones8147 agreed
@@christophernicolson5086 I can’t disagree with your comment. However an economy is made up of many moving parts, some within our control and some outside. I’m no economist and I don’t have much faith in those that claim to be. ATM, there is a lot of frustration, some I believe is justified and some is not. We will only know if the right balance of meeting our collective needs has been achieved in time. It seems everything in this world needs to be done yesterday. Often at the expense of doing the right thing. Successive governments have failed on so many points it’s hard to count. But we are here with new leadership and they need time (probably to fail) to effect change. Best wishes 👍
Yeah but, blue passports!
Stupidity of politicians driven by arrogance
No tariffs on Chinese EV’s in the UK?? That’s crazy! The world needs to make a unified stand against the dominance of China in many markets
or driven by the Western liberal economic ideologies
Everyone notices that more and more major democracies are falling into chaos? (France, Germany, UK, USA (soon!), Taiwan, Japan, Philippines, South Korea...)
driven by absolute incompetence and ignorance that also drives that stupid arrogance
60% of cars in the UK are imported, while the remaining 40% are produced locally.
Of those locally produced cars, 80% are exported, which means that 80% to 90% of the cars sold in the UK are imported.
Why, then, is it not a concern to import cars from Germany or France, but importing cars from China is considered a problem?
However, I still believe the UK might impose tariffs on Chinese electric vehicles, not for the benefit of the British automotive industry, but rather for the interests of the United States.
Shouldn't we have realized that this would happen a long time ago, *_before_* we started to outsource ridiculously huge parts of our industries' production to China. *It doesn't take a rocket scientist to understand that both greed and incompetence caused this in the first place.*
@ph6560 a few people lined there pockets for generations at the expense of our industry they've had our dinner !!
China is an economic outlier with an economy that is entirely planned that hasn’t regressed into a full on corrupt dictatorship. They devalue there currency to keep its citizens poor and exports cheap. No country on earth (and probably in history to come) would be able to repeat this.
Basically this
This isn't just outsourcing. China has invested in these technologies while we have political culture wars over the ''Green economy''.
The west didn't steer its economy towards green tech, it rail road'ed us.
Now we are stuck on a train to the wrong station.
We have to wait for the next stop.
I'd say the right idea was implemented badly.
I worked for GWM (now HAVAL) as a salesman many years ago . People laughed at me for trying to sell them a Chinese car . Now Mercedes branch has closed down and Haval is booming in my town .
may i know where is your town？ which country ？ 😊
@schan9908 South Africa , The province: Free State , Welkom (town)
Carmageddon is the name of an actual video game from late 90s.
Its here now.
This just unlocked a core memory i'd completely forgotten about.
I remember the game. It was about brutal cars crushing pedestrians and other cars. I'm not sure it would be allowed to be sold in this P.C. era 😂
@@richardlabeja a new Carmageddon was launched in 2015 and THQ Nordic bought the rights to the franchise in 2021. There are talks of launching a new Carmageddon in the future.
Because reality is a video game right now.
Doesn’t the US give a $ 7,000 tax credit on all US made EVs, sounds like massive state aid to me.
Very good point!
$7,500 but Trump is going to cancel it….no problem for Tesla, massive additional pain for the useless American car makers who lose a fortune on every EV sold 😂😂😂
@ but every Tesla would be sold at a loss with out the tax credit so it would be a problem for them. Thats also why Trump wont be cancelling it since he is now BFFs with Elon.
@@dougm659 That is already getting pushback from the Republicans. Turns out most of the new Ev jobs are in red states.😂😂😂
And the billions in subsidies that the "journalists" don't talk about
Europe screwed itself.
Net zero madness.
Net zero is by the UK not by the EU. So maybe UK screwed itself
More mad to destroy the whole world for the sake *checks notes* cheaper cars for a few years
EU will dominate the world after Transition and end this Race First. IT IS Not renewables that are Cost much, IT IS the grid. Oncenyou have the grid, IT IS so cheap. Imagine Not to Spend so much Money for Energy Imports.
Wrong. The 'madness' is in thinking we can go on burning fossil fuels ad infinitum. This is a good summary of the global car industry but he gets it wrong about why China's power is cheaper. It's cheaper because of renewables which this year have surpassed coal in electricity generation there. The supply chain for solar panels is also dominated by China who in the first 5 month of 2024 installed 75 GW of solar..for context the UK has 100 GW of generating capacity of all types. Globally, solar backed up by grid scale batteries has gone from 1% of electricity in 2016 to 4% in 2021, to 6% last year. The raw materials are cheap and abundant and we are not running out of places to put the panels. This decade solar will overtake wind, hydro, nuclear and gas in electricity generation and coal by 2032.
Its' really more about the sheer scale , expertise and low labour costs that the Chinese bring to bear. China is installing huge amounts of wind and solar. Legacy auto makers just cannot compete on cost.
There is no UK mass market car industry left, so why bother putting
Tariffs on? We have nothing to defend. All Tariffs would do is make cars even more expensive for UK consumers.
"UK has nothing to defend " is broadly correct but what about Jaguar Land Rover ? Maybe they will be made in India soon as they are Tata owned ?
@hawkinsn31 Low volume luxury brands are going to be more resilient anyway. JLR don't build range rovers in Solihull because it's economic to do so, they build them there because their buyers expect it and can afford to subsidise it. Same reason Gibson makes guitars in nashville.
government gets an extra 10%, so on an imported car from China it will get 10% duty and 20% VAT, it's a nice little earner for the government to spend on benefits for all the out of work people.
@@hawkinsn31people who buy Land Rovers won't buy EVs, and vice versa. They don't share a market.
A car doesn't have to have a British badge on it to be made here. The Nissan factory in Sunderland makes more cars than the whole of Italy. One does wonder how much longer it will make sense to have a Nissan factory here. It's no longer inside the EU customs union, for example, and most of the production has, histoircally, been exported to Europe.
What it shows me is that the country that began the industrial revolution is now the last place on earth to start an industry, guess who it is??
This country sold his whole car industry to China😂
There have been many industrial revolutions.The current one is a software AI driven one. US clearly leads.
@@YangYang-ij8yvIndia but yeah stupid move from the government
Britain invented the electric motor, electric car and contributed massively to lithium ion batteries and artificial intelligence.. we are led by idiots
14 Tory years
What people forget is car companies make HUGE profits from part and repair services for their cars. EVs have less parts and require less labor time to repair so huge losses for car companies
Good point
@andrew30m Yep EV doesnt have alternator, dc battery, belts transmission that needs work. EV batteries last 15 years typically and most people dont keeo their car that long nowadays. Thats why Elons only business isnt selling cars he owns the supercharger network among other things
Yeah CATL and other manufacturers are putting 200-300k warranties on their batteries on this latest generation
@@eldictator1 Yea but likely u wont need em. I have a neighbor with a 2013 model S battery is still at 98% efficency at 200k+ miles
Profit is core values of western society , forget the sustainability
Respect to anyone who actually remembers the computer game carmageddon
I actually still have that game..👍🏻
Thanks for the comment, nostalgia unlocked !!!
So many memories playing that one
What’s behind the crises? Overpriced and and unreliable cars that are incredibly expensive to maintain
Agreed. Owned 3 Audis and never again. An unending headache with one problem after another that never ends and costs a fortune to fix.
Planned obsolecence. People keep older cars because they're built better.
Overpriced and and unreliable ➔ it may have something to do with Germany's 4-day workweek (among other things, of course). Those people have lost their survival instinct in a highly competitive world.
It’s not the EV disaster. German cars are not the competitive anymore.
It's too expensive for BMW to manufacture in Germany. So manufacturing is going to china! Yes, this is primarily because Germany lost access to Russian energy via Nord Stream. This is a consequence of foolish foreign policies.
@ Germany should have spent money of the decades becoming more energy efficient.
@@davincii999german electricity prices have returned year ago, ruski bot😊
Yes it is. Transition to EV's has been a disaster. Forcing a product onto people who don't want them will not work.
We dominate the European ev Market!
So, forcing consumers to buy something 50% more expensive than what they usually buy, then artificially increasing the cost of cheaper alternatives has lead to a total demise in local manufacturing!? I am shocked.
Legacy auto are racing to become the next Blackberry.
No, these are the cars that people want to buy.
@Jack-lo1uc So why are sales of ICE cars falling but sales of EVs rising?
@@TMan786 Subsidies. And even with generous subsidies sales of EV's are collapsing in the west as no-one except the financial and political elite can afford them either way. And they've already got theirs.
there's no point in the UK imposing tariffs, we don't have a car brand, if Nissan disappear (they will) China will take over the Sunderland plant.. they're already taken over the Nissan plant in Barcelona 😂
Exactly. The British car industry died with Rover Phoenix. There's no point in tariffs because we have no domestic mass manufacturing to defend. All Tariffs would do is make cars more expensive for UK buyers.
I’d rather chinese Brands bought up U.K. leftovers, 1, they have respect for our heritage, 2 respect our luxury brands.
I refuse to believe that a Japanese company would allow their greatest enemy to take over their business 😮
@@badassbiker78 they already have 🤣
“The developed world”
China is pretty developed bro
I have been to China and I concur.
I have been to china and worked there. Much of it is developed but it's very very primitive. Many people cannot even read.
I think the word developed means developed economies with stagnant growth in this situation
@@crustywinnets263 China's GDP is almost similar if not more than combined EU GDP, we have been complacent for a long time and now the tides are changing.
@ not surprising since they have 1.4billion people last time I checked, they are on the ascendancy, politicians pushing manufacturing to China in the 80’s have sold us (and theirselves) down the river completely
13yrs ago Jeremy Clarkson said China couldn't compete. Well... aged like milk.
So did Jeremy
13 years ago, it couldn't.
Then some years after that in grand tour he said China is the future.
Aged like wine. He was talking about ICE cars. The Chinese had to buy corrupt politicians in our countries to make laws against ICE cars, because they knew they couldn't compete in that area.
There’s an episode where he explicitly said at the rate of chinas car industry is growing, we will soon all be driving Chinese cars
A brief inspection of more or less any technology product in your house will reveal it’s made in China. It hardly started with cars! We opened the stable door a long time ago, with no industrial strategy of our own. China is also growing its own renewable energy production faster than any other country on earth.
Exactly this has happened for almost every other manufacturing sector decades ago, so why are we suprised?! The key will be not suddenly close european factories because were not outcompeting china in their own market. European cars still sell well in europe.
That was low margins products, higher margins products was were we Europeans excel at if we lose that market we are doomed.
Thatcherism
@@jpschaerbeek9659 Not for long.
The consumer was being screwed over by car companies since 2020 when they deliberately inflated prices of new cars due to an alleged chip shortage and they have refused to lower their prices since. New cars are on average 20% more expensive than they should be
They study harder, work harder, build better and make cheaper. It's shouldnt really be a surprise. The only thing we can criticise is their social model, but there again, ours isn't exactly functioning right now
Their wages in factories are below 1k usd.
@@user-nh1yb9mk7yI'm guessing their cost of living is lower too
Ours isn't functioning well, because we are not using ours.
@@user-nh1yb9mk7y u know nothing about currency, do u have any ideas of wut is purchasing power PPP?
@@user-nh1yb9mk7yBecause China can produce almost all goods, so their goods are affordable.
The Americans & Europeans underestimated the Chinese of being so productive , innovative, creative and competitive.
They were resting on their laurels for being great car makers and had so much pride their internal combustion engine car brands which had been very successful for the past several decades but didn't see the competition coming from the Chinese EVs in the global car industry!
I disagree with the competitive and productive points. IMHO - Western brands have been using China to manufacture their products since the 80s to maximize profit margins and appease shareholders for expansion. I agree that Americans and Europeans have underestimated their ability to be innovative. The state of the Western automotive industry is a culmination of shear arrogance, complacency and being asleep at the wheel
arrogance is there downfall, but never learn.
This is a really good summary of the global car industry, although he makes one big error on energy costs. China's energy costs are now low because they burn a lot of coal, they are low because solar and wind are by far the cheapest form of power. In the first 5 months of 2024 China installed 95 GW of wind and solar, almost as much as the entire UK grid and this year wind and solar surpassed coal as the primary source of electricity generation in China (35%).
I bought a brand new Audi RS3 in 2018. After a year and a half, the engine failed and everything from the turbos, to the inlet manifold, to the fuel pumps were replaced. They cracked the engine open after none of this worked and replaced them all again. They had the car for 5 months. I told them i wanted my money back as under Australian law, the car has suffered a major faulty and I'm not liable. I didn't race the car, never mistreated it, and only launched it 3 times in 18 months.
Audi refused, and has fought me all the way through the courts. 5 years later I'm still fighting.
Should have got a evo or Gtr mate
My daughter has had nothing but problems with her Audi Q3, absolute garbage, the days of people buying German cars is coming to a quick end.
I've had a new gen C Class since Sep 2022, Brand new from factory and i've had nothing but software issues with it. The car had a meltdown software wise in August this year and I still haven't got it back. They said they've had to replace the ECU but they are still having issues with it so they might have to get an engineer in from Germany to try and sort it! Absolute joke
Owned 3 Audis and never again. An unending headache with one problem after another that never ends and costs a fortune to fix. Your situation is unforgiveable....and they think word of mouth has no power...again utter arrogance.
These days cars produced in China offer the same if not more comforts than European cars for much much less money. A lot of people have cars on finance agreements these days so even if there were reliability issues (which I haven't heard of anyway) then it wouldn't matter much as it's under warranty. Most people use cars just to get from A to B so it's not hard to see why they wouldn't want to pay £500 a month for a BMW over paying £250 a month for a Chinese made car which can do the same.
Pay 500 for a subscription BMW with zero luxuries and engine trouble , or the same price for a chinese ev with fully loaded entertainment and a 400 mile range minimum
Most of the BMW's these days driven by the local gangstas..... probably because they have a lot of undeclared income (obvious where thats from) that they can't put into a bank
It's every industry, and the reason is: greedy rich people
Planning, China made a plan and stuck to it.
We simply didn't, well except for the greedy -oligarchy- entrepreneur.
Facts. Michael jackson was right. They don't care about customers.
The main problem with the car industry in Europe is cost and outdated technology. Japanese has stripped a few Chinese EVs and was surprised to see the technologies and innovations involved.
"Japanese has stripped a few Chinese EVs and was surprised to see the technologies and innovations involved" LOL
Everyone strips all EVs :P
Ha no
no its just that after america destroyed the nord stream german car companies started to move out that was the whole purpose of the nord stream destruction de industrialise EU guess whos benefiting
We are not good at ev’s simple as that, European car makers preferred lobbying against ev’s so they fall behind.
Everyone looks at competitor cars apparently ford ceo is trying the xiaomi su7, the Japanese are still in the wet dream of hydrogen they are no better, the surprise from this is kia and Hyundai evs.
It used to be chinese manufacturers climbing all over foreign brands at car shows, now German etc are astounded at the new materials and chemistries/ innovations
Price.
My Ford brand new Oct 2019 list price, £13,495.
Today Dec 2024 £25,900 an increase of £12,405 in just over 5 years. Ridiculous my wage certainly has not nearly doubled in that time. PCP is the other element, less people seem to care about the overall price just look at what they can afford to pay.
Whilst we were fighting over DEI, 4 day working week and Net zero we were quickly overtaken
Handing over 14 billion for climate change projects globally, DEI management.. whilst China spends that money on solar and wind further lowering it’s costs and putting people with engineering and chemistry PHDs in senior roles
@@eldictator1 China is dealing with Climate Change in the process of it's industrial policy.
This
I worked as an exec for a big car manufacturer from 2012 - 2018. DEI was like 2% of my jobs. Probably 0% for my other counterparts. This myth that DEI is taking up productivity and efficiency is absolutely wrong and put out there by those offended by seeing differences in the work place. What took up 98% of my job was online marketing strategy, revenue generation, customer insights and compliance.
The major issue as I see it is pricing. They seem to have maintained Covid new car prices, but they are offering far less incentives in retailer contributions and part exchange valuations. So people are hanging on to cars for longer now.
The problem is new cars have become just to expensive so they are out of reach for the majority of the working class also the market has basically reached saturation point
Amazing we’re talking about growth and our costs for energy are the highest
It's almost like China planned ahead 🤷🏼
They had the intelligence to realize that the electric car was absolutely the future. Here in the UK we have too many conspiracy theorists and people with limited vision to learn from the past and see the future. Dragged everyone down.
They don't have oil giant controlling the govt instead govt controls them.
@@marviwilson1853a fundamental flaw of relying on Capitalism is being realised at the national level. On the other hand the consumer should be the winner in the short term at least but only if government do not restrict access to the product by using tariffs. The other aspect of Capitslism which is the motion that some mega companies are considered too big to fail and Govts too willing to support them.
@mickjoebills same was true with the banks. Government had to buy large parts of them out to keep them afloat. They were all too greedy and acting in collusion.
The legacy brands are a macro version of the U.K. car industry during the 60s/70s. Largest motorcycle maker and top car maker, rested on our laurels, let management and unions dictate the direction, discredit Japanese cheaper bikes, Japanese innovate newer tech and trends, they then take over.. step forward China
'What will this mean for the UK car industry?'
Ermmm what UK car industry?
Well, if they’d not done everything in their power to NOT make electric cars, perhaps they wouldn’t be so far behind now. Their greed and corruption has now cost them their future. Let them fail.
VW and the unions fired Herbert Deiss, the only guy who saw the iceberg.. they’ve hit the iceberg and are trying to make sure the band get a good wage of a sinking ship
In reality, they just make worse cars than before for much more.
Even the cheapes cars are like 20k, i can buy a 10 year old car with 100k miles that with good care will easily last another 100k for a quarter of that or less, there is simply 0 point of buying a new car right now.
For most people that is a wise choice.
Why invest here the energy costs are not worth it, the uk is finished. But we can export potato’s and beetroot
For how long? Pray those with lower costs don't beat us on price.
Chinese beetroot is cheaper and tastier. 😂
Not if farmers can't farm, who is going to grow potatoes and beetroots when they sell their farms to pay taxes?
Hahaha 😂😅😂😂
14 Tory years
Pushing EV. Not many want them. Let’s face it they are expensive and crap.
Chinese EVs selling very well. It's totally the fault of American and European competitors that they're unable to compete on price AND quality because they are wedded to fossil fuels 🤷♂️
@@oldskoolmusicnostalgia legacy automakers now pay huge fines if they don't meet the EV quotas. How is this exactly helping if most people DO NOT want EVs? The government is intentionally killing the free market. What kind of competition from chinese automakers are we talking about if the biggest threat to the UK car market is the UK government?
Coal is not the cheapest fuel. China has added more solar power in the last year than the entire world - EVER. So solar in China has gone ballistic - because it is cheap. China traditionally used lots of coal, but it is expected to faze it out in the next couple of years due to the massive increase in solar and wind.
They open new coal plants every year to keep up with demand
They might have, however at the same time they are adding one coal powered power station everyday.
Don't go arguing using such facts, some people here will find their brains freezing 😆
@@john-eo1nswhy lie?
China learns from the west that if they want to be industrial leader they have to grow sustainable. As the west had there share of growth came from cheap oil , lesser regulations, higher environmental impact rates .
When will my Chinese takeaway get cheaper?
was your chinese takeaway made in China?
When they use lithium batteries to cook your food, of course they could burn the takeaway down too so there is that.
What an excellent - very clear presentation 😄
This was actually well presented - great charts
One of the best explanations of the current crisis, with research and facts... instead of just bar talk.Thanks!
There is a deeper problem; cars are the past not the future. Less and less people will buy them, this is already happening.
Even electric cars are only a temporary phase. Car owning and use is pricing itself out. Public transport will be the future.
no, public transport is pricing itself out too.
electic bikes and scooter ARE the future!
As someone who reviews cars all around the world I also wanna mention that China's building solid quality and pumping out MORE innovation than us in the west - without tariffs they would obliterate the car market in Europe + the US
BYD is super cheap and best value for money. The UK should be buying en masse and not get caught up with tariffs. We are a free trade nation and it would be cheaper for consumers. Why should we pay more just because the German automotive industry has been poorly managed?
It isn't just the automotive industry. It's the whole economy. Same with the UK. It all starts with energy production and both have decided it's best to scrap cheap energy for the sake of net zero.
@@alistairmonrocheap energy is solar and wind, as the Chinese have shown. Certainly not fossil fuels that are liable to price shocks
@alistairmonro the economy will not move with anger until we get energy costs down. The industrial revolution was powered with cheap coal; the 80s, 90s and 00s was powered by cheap oil. We simply need to get costs down for consumers and businesses.
@@oldskoolmusicnostalgia
Don’t mention the coal fired power stations that supply most of the energy china thrives on
BYD get massive government subsidy's and lower imported tariffs strip that away and they would be the same price
Someone needs to mention how great that presentation was. Seriously incredible! Knowledgeable, to the point, great maintained tempo!
There is no reason why a new small car should cost £20k. There is the problem.
EU safety legislation. All new cars have to read road signs and warn of speed limits. Also driver assist and lane keeping functions, not to mention umpteen airbags, side impact protection, ABS, seat belt pre-tensioners etc. etc. Small cars are no cheaper to make any more as it is illegal to have a ""basic" spec.
It should cost around 13k-15k pounds
This is such a beautiful and well made presentation. Kudos to the entire team and especially to the presenter.
Europeans want cheap cars, and Chinese cars are the most affordable. The more wealthy people who want an EV, buy a Tesla. Those who don't want an EV, buy a Toyota. I don't think VAG will survive.
Vag will become a smaller company but will not disappear, instead of buying a vw people might buy a skoda or seat ect.
Tesla will hold on into their position a few more years as the bestselling ev in Europe
Toyota doesn’t even crack top ten in my country and the Dacia Sandero is the bestselling car in Europe
Policy’s doesn’t help should have kept the target for ev only but the targets running upto this deadline just force cars to be released before they are any good.
Also ideas to reduce emissions I think if it creates cars that are throwaway essentially that’s worse than making them last
Excellent analysis.
In a smaller scale the same thing is happening in the cycling industry, sales are rock bottom yet manufacturers upping prices and selling £12k+ bicycles!
I guess the stoppage of cheap energy from Russia also contributed to the decline
Nice to see a balanced report on this covering all the angles. Good job Sky News.
Quality and reliability . Its very Simple
Control of the whole supply from energy to delivery.
I can't see western car manufacturers surviving in the mass market - the Chinese have played a smart game.
There a number of issues. EU cars are simply not competitive anymore. I have friends who work at JLR and they get so fed up with the bureaucracy there. And I really dislike the idea of protectionism. As another commenter said, this only passes costs to the end consumer - it is not a free market. I live in the UK, and honestly, this country has become pretty depressing since 2008. Innovation, creativity, hope, are in short supply here
Unfortunately it doesn't seem to be getting any better. We need a radical change in government not this Red vs Blue debacle.
This was an amazing summary! Well done Sky.
So amazing, in fact, that they 'forgot' to mention the reason China has such low production costs is because they a) have cheap energy thanks to coal and b) have cheap labour thanks to slavery
2:18 “a lot of the power comes from coal and that’s a lot cheaper “ is an incorrect statement, China is shifting towards renewables because they are cheaper! Coal is one of the most expensive methods of producing electricity!
Well said, coal is used as filler for some energy shortfalls, but any plant running less than 70℅ output is shutdown.
Same for fossil fuels, expensive source of energy but US propaganda has convinced people otherwise (ofc in no way related to them being a major oil producer)
@@oldskoolmusicnostalgia
Yes, exactly :)
It used to be that it took skill and experience to build a state of the art combustion engine that was powerful, reliable, efficient, and it too heavy. Now electric cars all come down to a common denominator of batteries made in China. That’s why the car industry is becoming bleak in Europe
great presentation that - crystal clear
Never thought my used 2018 Audi would go up in value, yet here we are.
People just don’t have that much money to spend these days. Everything has gone up and buying a new car as a luxury.
Buying a new car has always been a luxury.
Because cars are double what they used to be, far less reliable, more expensive to run and maintain and they depreciate like there's no tomorrow!
Probably cause more people have less money and their prices are rising.
European policymakers have been manipulated and corrupted by Chinese interests into dismantling their most significant manufacturing sectors. As a result, Europe is being pushed toward a precarious state of dependency, all under the false pretense of moving toward a so-called “green future.”
This while vast ecosystems across Southeast Asia are being devastated by the resource extraction needed for car batteries, the manufacturing process itself is proving far less environmentally friendly than originally claimed.
And in the face of such unyielding stubbornness from Europe’s policymakers, we must ask: who truly stands to gain?
The only things that destroys the market is that everyone speculating over what are coming. And people get afraid and wait and even stop buying things.
Beautifully explained and represented as always. Thanks
Love this guys presentation
Great work by the team to put together a comprehensive overview of the EV space.
The undertone is that China caused the issue in Europe. This is misleading. Even today, Chinese cars take a small share of the European market. The issue was caused by the EU itself.
Volkswagen made 40% of thrir profit in China…its all collapsing. So the undertone is not totally wrong
I live in Dubai and the speed in which Chinese cars have entered and gained market share here is impressive. The quality and designs are continuing to get better.
1 in 4 new car sales in the UK are EVs.
Are company cars factored into that too? Genuine question. Also full EV or PHEV?
Because of the low BIK rate for employees, EVs are favourable, especially PHEV. Our employees never charge them though.. not for 30 miles of range. So, they're hardly saving the planet 😂
@satch7123 In some ways hybrids are a worst of both worlds solution and the incentive for legacy auto makers is obvious. Sell two drivetrains instead of one and wait for all that sweet, sweet servicing bills after sales. They have all the complexity of an ICE and all the weight disadvantage of an EV. EVs are simple and require less service.
@@satch7123there is also a phenomenon of manufacturers selling the car to their dealerships in order to avoid fines.
@@TMan786 They're also far less efficient than a standard ICE car when the battery runs out because half the engine block that makes an engine efficient is missing to make room for the electric motor.
@@TheLinkedList Yes and research shows that in real world usage, PHEVs aren't charged up in accordance with the guidance hence real world emissions are worse than anticipated and this may lead to a recalculation of the emissions reductions provided by PHEVs. They are largely a scam preferred by legacy auto to minimise the disruption to their own business model whilst garnering credit for being better for the environment. Leaving aside all the issues owners have faced with thefts of their catalytic converters. My advice is stay away from Hybrids if possible.
That was an amazing presentation. Hopefully I'll see more like that in the future.
The European manufacturers priced themselves out by building big electric cars and SUVs. They were targeting an audience that is much less represented than they anticipated.
I understand why they were after the higher end of the market: much better profit margins for a product they ship only because of the EU mandate.
How come I foresaw this and they didn't? The managers and the boards failed in my opinion by investing in developing products then people haven't asked for.
Excellent report 👍👍
Really good analysis and explanation 👏👏👏
The difference in cost for distribution is insane
State aid is only 4% of revenue, as opposed to 0.5%, yet the cost of production is 29% less just for the battery.
What all these analysts are missing is the plain and simple fact, China WANTS the customers and is prepared to fight for them.
Those subsidy figures are also misleading. How many decades of tax concessions, factory write offs, guarantees by the govt, have all these car companies received?
In Australia, billions upon billions was spent by the govt on the automotive industry, including building factories, subsidising wages, tax write offs. All designed to keep jobs in Australia. But within 5 years of signing those agreements, Mitsubishi, General Motors, Ford and others, all left.
These companies have been lying to us and providing us inferior products for decades.
Their software and driver systems have been terrible. Reliability has been awful.
China saw this and wanted our business. Now Western countries are doing their best, not to improve local products, but ban and tariff overseas products to stop their people from getting them
Spot on and GM still owe the Australian government $150m and worse Toyota have been fined $3.7billion which I bet they haven't paid yet.
When they showed that graph 📊 about the most expensive part of an EV production process being the battery 🔋, true …. But the messed up part is as time goes on and they keep scaling that will keep getting cheaper and cheaper. Whereas with an ICE engine, they basically have maxed out production efficiency(they have had about 100 years of optimization to do so) so that price won’t be dropping anytime soon. Not looking good at all for gas ⛽️
Traditional brands slow to read the tea leaves
They were warned.
They have 100 year history building the best petrol and diesel engines yet went to compete in a field where the Chinese have been ahead for 20 years 😂
Carmageddon was a great game.
Superb analysis. Consise and full of insight. Would like to know what are the options the UK govt and car sector to respond effectively...
Most cars now are 30 to 40 grand and some electric at 50 who has that money to loose lots on depreciation
They depreciate hard. I bought used.
Well most European or USA electric cars are around 50k because Labour isn't cheap in western country. Production isn't cheap in western country, materialistic such as battery lithium ion produced in western country isn't cheap yet tesla uses china's EV battery.
chinas car industry is cheap because of cheaper material, efficient speed production, and cheap labour but we don't concern that not our problem because not our country
@@peejayem4700 I also bought used and still lost a chunk of money after only one year.
What an amazing video, really hits the key points!
I hope everyone realises he just destroyed the "free market" illusion