you're reading...
Economic and Social Policies, PUBLICATIONS

A picture of the EU car industry

French language version available in PDF format
L’industrie automobile européenne

2012 was a tough year for the EU car industry. The chief of one major car-maker said that the industry as a whole probably lost €5 billion in Europe in 2012 and that a solution had to be found to achieve profits.

Car assembly line

© gjeerawut / Fotolia

The perennial problem of surplus production capacity in Europe (15% in 2012) is allied to a mature (roughly flat since 2001) domestic market and buyers facing austerity.

However, the EU car production industry has a long history and still leads world production (26% market share) though others, like China (24%), are growing fast. It is one of the EU’s most successful export industries, generating a large, positive trade balance, mostly from more expensive cars. The main competitors are Japan, the US and South Korea.

Car plants are spread throughout the EU – Germany, France, Italy and the UK have most – satisfying 85% of EU car purchases. Local customer preferences, high extra-EU transport costs relative to cars’ low profit margins, along with a 10% import tariff rate are reasons for the ‘high’ level of 85%.

Along with sub-component suppliers and after-sales services, the industry is a major R&D investor, employer – including many SMEs -and generator of state taxes. It is global, networked and integrated.

Read the complete briefing here.

Car suppliers

Car production

Car sales

Discussion

2 thoughts on “A picture of the EU car industry

  1. In a book : ” Quand le Made in France devient le Mad in France” a long chapter is written about cars and the reasons why Renault and Peugeot do not sell any cars in the US. The book is in French : it tries to explain why when you remove the “E” of Made E like Economy, Entreprise, it becomes Mad results of the frustration of the French when a factory closes!
    The numbers given above are an indication of the differences between the German car industry and the French.

    Like

    Posted by André Girod | March 15, 2013, 14:15

Trackbacks/Pingbacks

  1. Pingback: The week on the EP Library’s blog: “Friendly staff, best resources, policy acumen” | Library of the European Parliament - March 15, 2013

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download the EPRS App

EPRS App on Google Play
EPRS App on App Store
What Europe Does For You
EU Legislation in Progress
Topical Digests
EPRS Podcasts

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 3,381 other followers

Disclaimer and Copyright statement

The content of all documents (and articles) contained in this blog is the sole responsibility of the author and any opinions expressed therein do not necessarily represent the official position of the European Parliament. It is addressed to the Members and staff of the EP for their parliamentary work. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the European Parliament is given prior notice and sent a copy.

For a comprehensive description of our cookie and data protection policies, please visit Terms and Conditions page.

Copyright © European Union, 2014-2019. All rights reserved.

%d bloggers like this: