EASN – european Automotive Strategy Network
The automotive industry is very important to the economic well being of the EU. Its trade balance of €57bn is greater than pharmaceuticals (€34bn) and chemicals (€14bn) industries combined. It also employs more people (2.2m) than the pharmaceuticals (1.4m) and chemicals (0.6m). The automotive sector invests more in research and development that any other sector. A healthy and competitive automotive industry is indispensable to the achievement of the EU's jobs and growth ambitions.
The demand for cars is growing and over the next 20 years more new cars will be made than in the entire 110 years of the industry to date. There will be a need for 180 new car plants globally, typically making 330,000 cars annually and plants will need to be renewed, retooled, refurbished or replaced with investment likely to exceed $80 Trillion. Innovation will underpin the industry's response to the challenge of reducing its carbon footprint.
Contrary to “popular belief” of some observers, the European automotive industry has a strong long-term future, provided it evolves to meet new and changing market situations.
The questions to ask are, “How can the EU maintain its position and technology leadership in this growing market?” and "What are the critical success factors for achieving this?"
The structural change in the Automotive Industry will lead to a continuing consolidation. It is expected, that the number of suppliers will reduce by half to 2800 worldwide and, possibly, only 10 of the 12 major OEMs will stay independent. New players from India and China are buying services and investing in the EU. Growing global competition, cost pressure and environmental demands, and the shift of value towards suppliers will change the sector significantly. The future of the European Automotive Industry depends on maintaining and consolidating our competitive advantage in terms of technology and innovation.