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Automotive Industry:Europe: Difference between revisions
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== Future Risks == | == Future Risks == | ||
=== Moody's August 2023 === | |||
* Energy and resources: Wholesale electricity costs in Europe have surged to twice the costs in the United States and triple costs in China.1 This creates challenges for the auto industry, in which a significant portion of production costs come from energy requirements. | |||
* Geopolitical tensions: The European auto industry generates a significant—and higher compared with other regions—share of its revenues through exports,2 which means current geopolitical pressures have an outsize impact on European automakers. | |||
* Supply chain challenges: Compared with other industries, the auto industry relies more heavily on timely deliveries of parts and components from international markets. The European auto industry is therefore at considerable risk when finely tuned international supply chains are disrupted. | |||
* Inflation: Inflation has hit Europe much more severely than the United States or China, with labor costs for European automakers disproportionately affected compared with other industries. | |||
* Productivity crisis: Europe’s productivity and economic growth lag behind those of its peers, particularly in areas such as software engineering in which the auto industry needs significant additional capacity. | |||
=== KPMG 2023 === | |||
== References == | == References == | ||