Francisco Riberas, executive director of Gestamp, warns that Europe faces a significant risk of losing its automotive industry. He notes that European production is currently 20-25% lower than its 2017 peak, while Chinese car manufacturers have gained market share due to lower costs and advanced electric vehicle (EV) technology.
In an interview with the Financial Times, he emphasizes the urgency for Europe to revive its auto industry and form advantageous partnerships with Chinese manufacturers who are setting up factories in the region. Riberas portrays the situation as an existential crisis, highlighting that the loss of the automotive sector could jeopardize all manufacturing in Europe, potentially leading to severe economic repercussions.
Supporting Chinese investment in Europe, Riberas advocates for these manufacturers to source components locally rather than relying on imports, to ensure that the production contributes to local job creation. He points out that one job in a European vehicle plant supports three jobs in component manufacturing.
Riberas also highlights the financial challenges faced by European manufacturers, who encounter less favorable financing conditions compared to their Chinese counterparts, who benefit from easy access to capital.
He expresses his support for the EU’s proposed Industrial Acceleration Act, which includes local-content requirements, but insists that the automotive sector needs substantial support in investment, technology, digitalization, and artificial intelligence as well. He warns against solely adopting a protectionist stance, stressing the importance of maintaining the industrial base to prevent irreversible losses.
