From Time Inc.:

1. China’s electric vehicle company BYD is exporting its cars to countries around the world, including Indonesia, Mexico, and England. German auto suppliers are feeling increasingly threatened by this expansion, forcing them to invest in electric vehicles while also maintaining their market position with traditional cars.

2. For decades, German suppliers thrived alongside the nation’s automotive powerhouses, including VW, BMW, and Mercedes-Benz. However, the transition to electric vehicles suggests they can no longer rely on their old advantages.

3. German suppliers need to invest in EVs while also keeping their market position with traditional cars, leading to double spending on double platforms and decreasing growth and profit.

4. Schaeffler seeks to buy the rival Vitesco Technologies, which has become attractive due to its early bet on EVs, while German suppliers are contending with inflation and rising interest rates.

5. German automakers are likely to face the consequences of increased competition from Chinese EV makers, according to ZF management board member Stephan von Schuckmann.

6. EU investigators will visit Chinese EV makers BYD, Geely, and SAIC as part of an investigation into whether they have an unfair advantage due to government subsidies, which could lead to higher tariffs to protect EU carmakers.



Read more: As Tesla-beating BYD and other Chinese EV makers rise, German auto suppliers struggle