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China's automobile revolution: threat or opportunity for Germany?
The former VW design boss comments on the challenges and opportunities presented to the German car industry by Chinese competition.
China's automobile revolution: threat or opportunity for Germany?
There is a lot of trouble in the automotive industry! China's car manufacturers are increasingly conquering the European market and putting the local giants under a lot of pressure. This can be seen, among other things, in the words of Michael Zyciora, the former head of design at Volkswagen, who now works at Changan, one of the up-and-coming Chinese manufacturers in Chongqing. He describes in an interview with the FAZ that adapting to Chinese culture and ways of working is anything but a walk in the park.
Changan is described as a global player that has achieved particular success in the Middle East. The requirements of Chinese customers include not only high quality and innovative technologies, but also modern design. While Changan plans to gradually enter the European market, other Chinese manufacturers have already discovered the benefits of e-mobility. The current situation describes this vehicle operation as threatening for European car manufacturers, which could be heading for an annual loss of over 7 billion euros by 2030.
Growth and challenges
The developments in the industry cannot be overlooked: Chinese brands like BYD are entering the market and trying to gain a foothold there. The forecasts are alarming. European manufacturers' sales in China could fall by 39 percent by 2030, while imports of Chinese-made vehicles could rise to 1.5 million units. The first effects are also already visible on the stock market, as China's electric car manufacturers are increasing the pressure on European automobile companies Manager Magazine reported.
But what are the reasons for this Asian upswing? Chinese brands are characterized by well-rehearsed and data-based processes in corporate management. Zyciora describes what day-to-day work at Changan is like: board meetings are structured and focused on data, which is a completely new experience for him. The work ethic and efficiency in China are also remarkable; long working weeks are not uncommon.
An opportunity for Europe?
Another topic is local production. The Chinese strategies are aimed at building production capacities in Europe, possibly even in Germany or Eastern Europe. Although Zyciora does not have a direct say in location decisions, there is currently a dialogue about possible capacity reductions among German manufacturers.
In summary, it can be said that the European automotive industry is facing enormous challenges, but also opportunities. It will be exciting to see how established brands react and whether they can adapt to the new reality. As Zyciora aptly notes, Germany is caught in a reformation jam - whether it will manage to bring a breath of fresh air into the industry remains to be seen.