The global car reckoning is here, far too many auto companies don't have a plan
5 days ago
- #Chinese Competition
- #Electric Vehicles
- #Automotive Industry
- Stellantis CEO Carlos Tavares outlined ambitious 2030 goals in 2022, including €20B software revenue, 40% lower distribution costs, and 100% EV sales in Europe.
- By 2025, Stellantis posted a €2.3B loss, abandoning many 2030 targets due to market shifts, regulation, and competition from Chinese EVs.
- Global automakers (Volvo, Ford, Tesla) face existential challenges: EV adoption, Chinese competition, software monetization struggles, and fragmented markets.
- Carmakers bet on software subscriptions (e.g., Tesla’s FSD, VW’s performance upgrades), but BYD rejects the model, offering tech for free.
- Chinese automakers (BYD, Chery) dominate with cost-efficient EVs, claiming 65% of China’s market and expanding globally, pressuring Western brands.
- Ford pivots to B2B subscriptions (Ford Pro) and radical EV manufacturing changes to compete, while Hyundai focuses on 'superdealers' and software-defined cars.
- European automakers lobby to delay 2035 ICE ban, citing unprofitability, while U.S. policy reversals under Trump add uncertainty.
- Battery supply chain control is critical—Renault, Ford, and VW weigh partnerships vs. in-house production amid Chinese dominance.
- Industry consensus: Profit must come from car sales first, with digital services as supplements, not primary revenue.