Western Europe’s share of global automobile production could slip to less than 5 percent over the next year. That’s the opinion of a growing number of top global executives surveyed by KPMG. Worldwide, 76 percent of executives agree either partially or absolutely with the statement. There’s more pushback on the statement by Western European executives, with just 68 percent of them agreeing with this prediction for the region’s output. However, it’s 10 percent more than believed it in 2019. Between 2010 and 2019, Western Europe’s total share in global production of vehicles fell from 18 percent to 15 percent, while China already accounts for 27 percent of all cars built. “With the expectation that COVID-19 will have a greater impact on the automotive industry in Western Europe than in China, we will likely see a further reduction in the production share accounted for by Western Europe this year.” The only thing KPMG can imagine helping Europe hold onto its position in global markets would be government subsidies and tax breaks for environmentally friendly technologies. Czech media has been all over the story, reflecting the enormous importance the automobile sector has for the country’s economy and for its employment levels. Any decline in European automobile output would have serious consequences for the sector and for the country as a whole.
