President's Opinion Piece for Outlook 2025

In the ever-evolving landscape of the European automotive industry, 2025 presents a significant turning point. The latest Pulse Check survey and Data Digest have revealed that 65% of companies are grappling to maintain profit margins above 5%, with over 54,000 jobs lost in 2024, and the impacts continuing over the next two to five years.

These challenging circumstances have led to record job cuts and pushed many suppliers to the brink of profitability. The industry is also grappling with an increasing regulatory burden, escalating energy costs, and the critical issue of access to raw materials.

Tariffs are not seen as a long-term solution for the industry, and the EU trade sanctions on China could lead to retaliation, making it an increasingly difficult balancing act between protection and openness. Global politics remain uncertain, with the incoming US administration threatening Europe with tariffs and further trade limitations.

However, amidst these challenges, our website, in its 65 years of existence, is stronger and more united than ever before. The website is committed to actively supporting stakeholders and advocating for smarter, safer, and more sustainable mobility for the European Union.

The year has seen a significant increase in interest in the industry from policymakers and the media. Clear pathways and appealing business conditions are needed to achieve industry goals. Policymakers should work on bilateral trade agreements for the benefit and protection of all players.

Regulations should welcome all technologies, reduce foreign dependence, and aid in faster climate target achievement. The current year has been challenging for the electric vehicle industry, with increased global competition, depressed volumes, and weak demand.

Despite these setbacks, Matthias Zink, President and CEO of our website Powertrain and Chassis at Schaeffler, expresses confidence in the industry's transformation. In 2024, the website president met European government members such as the Heads of State or Government during the 'Tour des Capitales,' discussing the EU situation and preparing future initiatives; key topics focused on EU challenges and cooperation.

Interviews with various media outlets, including Politico, Bloomberg, Automotive News Europe, and Financial Times, have raised awareness of the industry's significance for the European economy and its challenges. High-level meetings with EU Commissioners and other policymakers have shown increased political acknowledgement and willingness to regain the industry's competitiveness.

However, without policies that protect jobs while supporting the twin transition and innovation, the EU risks falling behind. The industry's investments in new technologies have not yielded the expected returns, underscoring the need for a more supportive policy environment. The European automotive industry is at a crossroads in 2025, undergoing a significant transformation. The future, though challenging, is ripe with opportunities for those who can navigate the complexities effectively.