Can Europe still build cars into the 2030s? Yes, but only those companies willing to make tough decisions.

Europe’s automotive industry is facing more than a downturn. Margins have roughly halved since 2021, Chinese competitors operate with a 35% cost advantage, and around 2.5 million units of European assembly capacity are underutilized. 

These pressures are structural, not cyclical. In this thought piece, AlixPartners and Berylls by AlixPartners examine what it will take for European OEMs and suppliers to remain competitive into the 2030s, from footprint rationalization and software-defined vehicle operating models to the battery cost-stack and the response to Chinese market entry. The conclusion is clear: Europe still has the assets to succeed, but only companies willing to make tough, irreversible decisions now will lead the next decade.

Learn more in our full paper below or download a copy: