European Automakers: Smaller, Faster, Stronger;
How to Navigate Market Fragmentation to Maintain Profitability
Despite some brand loyalty towards European manufacturers, Chinese automakers are increasing their market share through strategic acquisitions and competitive pricing. The demand in the European market has declined, making capacity reductions essential to align with this new reality. The introduction of anti-subsidy tariffs on Chinese imports has not significantly hindered their market penetration.
To compete effectively, European OEMs must concentrate on their core competencies, reduce costs, and enhance production efficiencies. Given the industry's high capital intensity and thin margins, maintaining strong free cash flow and conservative balance sheets is crucial.
In our latest European Autos report, our analysts discuss the current trends in the European automaker market. Download your copy to learn which European automaker companies are well-positioned and poised to outperform.
