The car industry across the European Union employs over thirteen million people, both directly and indirectly, that’s around six percent of the bloc’s workforce. But in recent years, Europe’s manufacturers have been struggling to cope with issues like economic downturns, clean energy requirements and the digital revolution. Some of the oldest, biggest carmakers are considering plant closures and job cuts in order to try and stay afloat.

They are also facing fierce competition in the electric vehicle market from China, who have taken a lead in producing cars that are much more competitively priced and equipped with much more sophisticated technology. China’s own economy has been flagging, so the EU provides it with its largest overseas market in terms of the electric car industry.

But now, in a bid to protect their own car industry, the EU has introduced tariffs on electric cars made in China. These tariffs are set to rise from ten percent up to forty five percent for the next five years. Beijing has condemned them as protectionist and there are concerns that it could spark a trade war between Brussels and Beijing.

So, on this week’s Inquiry, we’re asking ‘Is Europe’s car industry at a crossroads?’

Contributors:

Presenter: Tanya Beckett

Image Credit: Westend61 via Getty Images