1、Automotive&Assembly PracticeA road map for Europes automotive industryKeeping Europes automotive industry competitive requires not just a refined focus on existing strengths but also an acceleration of existing efforts.August 2023 Sylvain Sonnet/Getty Imagesby Andreas Cornet,Ruth Heuss,Patrick Schau

2、fuss,and Andreas Tschiesner The automotive industry is a jewel of the European economy.For decades,the industry has been an important contributor to Europes economic growth,innovation,and prosperity,accounting for almost 7 percent of the regions GDP and being directly or indirectly responsible for e

3、mploying almost 14 million people.1 The industry also carries significant symbolic weight;taglines such as“Made in Germany,”“Italian car design,”“Euro NCAP for Saver Cars,”and“British racing”have come to stand for European innovation and craftsmanship.However,the status quo is being challenged and t

4、he industry faces massive ongoing transformations,such as the shift from internal combustion engines to electrified powertrains and a shift in focus from hardware to differentiation through software.This dynamic has allowed new entrants in Europe and abroadespecially in China,the largest automotive

5、market in the world2to disrupt the market and win market share.In 2022,China surpassed Germany in light-vehicle exports for the first time,with exports of about 3.0 million vehicles,in contrast 1“Automotive industry,”Directorate-General for Internal Market,Industry,Entrepreneurship and SMEs,European

6、 Commission,accessed August 15,2023;“The EU auto industry accounts for 7%of all jobs,”ACEA,September 1,2022;25 actions for a successful restart of the EUs automotive sector,CLEPA,May 2020.2“Automotive industry,”China-Country Commercial Guide,International Trade Administration,updated April 7,2023.3“