Europe’s automotive industry is facing an historic turning point. Electric mobility, fand geopolitical shifts are changing the ground rules. In an interview with Prof. Zheng Han (Tongji University, Shanghai) and Prof. Andreas Herrmann (University of St. Gallen), we discuss how European and Chinese manufacturers are positioning themselves, which role Europe could play in the future—and what the industry should learn from China. One key issue is speed. While European manufacturers focus on perfection, short development cycles and fast market launches dominate the business in China.
However, it would be premature to consider Europe as having fallen behind, says China expert Han. Chinese manufacturers benefit particularly in their domestic market from a strategic industrial policy. Their next goal is to achieve international success as well. In Europe, however, Chinese manufacturers do not find the same conditions that have supported their success at home. Herrmann, head of the Institute for Mobility in St. Gallen, says that while Europe has know-how in key technologies, it lacks critical mass. European providers are not competitive compared to global tech giants.