European car market faces decline: implications for major manufacturers
In the German and European car markets, orders for passenger cars have declined significantly. The importers association VDIK predicts that the number of newly registered vehicles in Germany in 2023 will be around 2.85 million, an increase of 7% compared to the previous year. However, this is still below the long-term average level. VDIK President Reinhard Zirpel does not expect an increase in 2024 due to a total order shortfall of 2-3 million across Europe.
Market leader Volkswagen faces deficit
VolkswagenAs a market leader with a 20 percent market share, it faces a shortfall of up to 600,000 orders, which could mean the closure of one or two factories. The scenario paints a difficult picture for the auto giant, which has been an industry stalwart for decades.
Renault begins restructuring
renault has already started a restructuring process to reduce manufacturing costs. The move is indicative of strategies automakers are adopting to cushion the effects of the economic downturn. However, this restructuring could have significant implications, leading to job losses and changes in production methods.
Future challenges and changes
Despite the market challenges, European manufacturers are actively addressing the challenges. However, significant upheaval is expected in this field in 2024. While this transformation provides opportunities for innovation and adaptation, it poses significant threats to established market players and their operating models. The automotive industry, as we know it, is on the brink of a seismic shift.