Who is at the wheel of the European car?

Sometimes it is easy to feel like suitcases of Jack Kerouak, Maltrechly stacked on the street waiting for the following trip that, in the end, is none other than a lonely nostalgia road. The European car is as lost as its political luggageico in a memory of greatness. It’s time to look at the future. This generation of the car is disoriented and with a pale green face. The EU has been designing an electric future on paper for years, but its industry still does not find the right march. The ecological transition became the center of its industrial strategy, with the car as a flagship. The goal was clear: in 2035, all new cars should be electric or zero emissions. However, while Brussels legislate with determination, manufacturers deal with high costs, the infrastructure advances slowly and the demand remains without taking off. Meanwhile, China has taken the lead in production, technology and prices, putting the green European “revolution” and accelerating the deindustrialization of the continent. In environmental issues, the EU should be raised once and for all to worry more about making good coffee makers than to impose which coffee drink.

The electric car has not managed to democratize. Its price remains an obstacle: despite the aid, the average cost in Europe is around 45,000 euros, while Chinese models such as BYD Seagull They can cost between 10,000 and 15,000 euros. The difference is not accidental. China controls more than 60% of world lithium processing and rare metals, which allows it to manufacture batteries 30% cheaper. In addition, its electrical automotive industry has reached economies of scale that reduce production times and costs. Europe, on the other hand, is trapped between its climatic ambition and its structural limitations. Although he has pledged to install 3.5 million recharge points by 2030, there are currently only 600,000 operations. In addition, the distribution is unequal: Germany, France and the Netherlands concentrate 60% of the infrastructure, while, in Spain, the second largest car manufacturer in the EU, the deployment remains insufficient. Norway, with just 14 million inhabitants, has more load stations than our country.

Problems grow: Volkswagen It has already reduced the production of electric in some factories due to the fall in orders, and Stellantis It is deviating investments towards countries with lower labor costs and lower regulatory pressure. Brussels has reacted with the urgency of who had sought hegemony and ends in hemorrhage. In October, the European Commission opened an investigation into the Chinese subsidies to the automotive industry, seeking to stop the massive entry of cheap Asian models. But recent economic history suggests that protectionism is rarely the solution. Neither here nor in the United States, where a car is a second house.

The challenge is not just technological. It is, once again, productivity. Tesla manufactures a Model and In ten hours, while assembling a Renault Megane E-Tech In Europe it can carry double. The difference is in automation, investment in R&D and adaptability. If the green transition is going to be viable, it cannot be based only on ambitious regulations and subsidies. It needs companies that innove, efficient infrastructure and an environment that rewards productivity instead of penalizing it with infinite bureaucracy.

Despite obstacles, there are opportunities. Germany has shown that you can build gigafactories in two years, such as Northvolt In Heide. Italy has managed to attract BYD investment to produce batteries in its territory. Spain, with the Sagunto plant, has a potential to become a European hub of energy storage. But if the EU wants to avoid falling behind, it must accelerate administrative processes, reduce the dependence of third countries for raw materials and ensure that electrification is not just a subsidy plan and becomes a profitable business model.

European economic history is a succession of advances and crises, of industrial revolutions and adjustments of accounts with reality. The ecological transition is its next great challenge. If you face it with pragmatism, innovation and speed, it can be reinforced. If it is still trapped in bureaucracy and late decisions, you will see how the future of the car is designed in Beijing and not in Stuttgart, Wolfsburg or Barcelona. Europe takes centuries inventing tomorrow. This time, you need to arrive on time in this European -style Road Movie we ask ourselves who is behind the wheel.

*Francisco Rodríguez is Professor of Economics at the University of Granada and senior economist of Funcas.