China Floods Europe With Cheap Cars, Grabs Record Market Share As Domestic Brands Buckle

Europe is becoming a glaring case study in how globalist leaders can destroy an entire automotive manufacturing base by flooding the continent with cheap Chinese cars and sending domestic automakers spiraling into crisis, while their policies simultaneously spark what Nomura analysts have said will be political blowback over an 18-month election cycle, with shifts toward the right already visible in recent German elections.

Bloomberg News cites new data from Dataforce showing that Chinese automakers captured a record share of Europe's car market in August by flooding the continent with cheap hybrids that undercut domestic brands.

Chinese brands, including BYD, accounted for nearly 12% of European new-car sales that month, according to Dataforce. The largest surge in sales came from hybrids: one in four sales overall and roughly one in three plug-in hybrids.

Chinese hybrids avoid the additional EU duties imposed on imported EVs, giving BYD a competitive advantage on an energy-stricken continent.

EV and hybrid sales jumped 27% in August, offsetting declines in combustion-only cars and lifting the overall market by 4.6%.

The increasing Chinese auto footprint inside Europe is becoming increasingly alarming when viewed from a Goldman chart posted to clients earlier today. 

Germany's auto industry crisis has refused to end as Volkswagen last week lowered its operating-margin forecast, reflecting a write-down on its Porsche stake and soft Chinese demand. Layoffs and production-line wind-downs are also mounting for European automakers.

Stellantis recently planned to halt production of the electric and hybrid Fiat 500 at Italy's Mirafiori plant during the final two weeks of October. Output could reach 60,000 vehicles this year, compared with an original forecast of around 100,000.

Meanwhile, Germany is preparing economic security proposals that could include tariffs on Chinese hybrids as its auto industrial base remains in turmoil.

The problem with Europe's auto industrial base, amid what can only be viewed as a planned demolition by the continent's globalist leaders, is its lack of readiness to retool for wartime, as the US is currently doing (see the GM report from last week), when civilian production quickly converts to weapons manufacturing. 

Europe is a case study for the world in what not to do, as its globalist leaders appear to be at the mercy of Beijing.