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Thursday 12 November 2026 15:34:16 GMT
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Europe's car industry is collapsing — Volkswagen is cutting around 100,000 jobs and closing factories at home for the first time, Mercedes and BMW are slashing, and Peugeot now sells fewer cars in some markets than Ferrari. Every official is blaming energy prices and red tape. That's a cover story. Europe's car industry isn't dying of old age. It's being taken by China — and European taxpayers are paying for it. This is China Shock 2.0: the first wave took cheap toys and furniture; this one is coming for the crown jewels — cars, machinery, the high-paying industries the West assumed were untouchable. Chinese carmakers design a new model in under two years versus Europe's four to seven, and build an electric car for around €6,000 less. Volkswagen's brutal 100,000-job cuts claw back just €1,000 per car. With Chinese domestic car sales collapsing, China is dumping millions of unsold cars onto the world while its central bank holds the yuan artificially weak — so they always land cheaper than anything a European factory can match. Then it gets worse. European EV subsidies are flowing straight into Chinese cars. And Chinese brands are now moving into the very factories Europe's carmakers are abandoning — Chery into old Nissan plants, Geely into a former Ford site in Spain, and Volkswagen's famous glass factory in Dresden in talks to be handed to BYD — doing final assembly on European soil to qualify for the same European subsidies. Once the know-how is gone, it's gone. Europe is becoming a badge on a Chinese car — and Europe is only the first domino. #economics #economicdevelopment #europe
Europe's car industry is collapsing — Volkswagen is cutting around 100,000 jobs and closing factories at home for the first time, Mercedes and BMW are slashing, and Peugeot now sells fewer cars in some markets than Ferrari. Every official is blaming energy prices and red tape. That's a cover story. Europe's car industry isn't dying of old age. It's being taken by China — and European taxpayers are paying for it. This is China Shock 2.0: the first wave took cheap toys and furniture; this one is coming for the crown jewels — cars, machinery, the high-paying industries the West assumed were untouchable. Chinese carmakers design a new model in under two years versus Europe's four to seven, and build an electric car for around €6,000 less. Volkswagen's brutal 100,000-job cuts claw back just €1,000 per car. With Chinese domestic car sales collapsing, China is dumping millions of unsold cars onto the world while its central bank holds the yuan artificially weak — so they always land cheaper than anything a European factory can match. Then it gets worse. European EV subsidies are flowing straight into Chinese cars. And Chinese brands are now moving into the very factories Europe's carmakers are abandoning — Chery into old Nissan plants, Geely into a former Ford site in Spain, and Volkswagen's famous glass factory in Dresden in talks to be handed to BYD — doing final assembly on European soil to qualify for the same European subsidies. Once the know-how is gone, it's gone. Europe is becoming a badge on a Chinese car — and Europe is only the first domino. #economics #economicdevelopment #europe

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