From Nasdaq:

Europe’s automakers and suppliers are facing pressure to cut costs for electric models to compete with Chinese rivals at the Geneva car show. China’s SAIC and BYD are showcasing their EVs, with BYD’s Seal shortlisted for Car of the Year. European automakers are struggling to transition to EVs amidst falling sales.

Legacy European automakers are being outpaced by EV-focused Chinese manufacturers due to vertical integration and lower costs. Chinese models like BYD’s electric Dolphin undercut European rivals on price, challenging profit margins. Suppliers like Forvia, Continental, and Bosch are already laying off workers, with more job cuts expected in the industry.

Stellantis CEO Carlos Tavares is urging suppliers to contribute to cost reductions amid rising material prices. European automakers are caught between cutting costs to compete with Chinese rivals and avoiding pushing suppliers too far. Struggling suppliers may require bailouts from automakers to prevent insolvency. Industry experts warn of a delicate balancing act ahead.



Read more at Nasdaq: PREVIEW-Facing Chinese EV rivals, Europe’s automakers squeeze suppliers on costs