Editorial & Advertiser disclosure

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Finance

Posted By Global Banking and Finance Review

Posted on January 16, 2025

Car plants in Europe, N. America face closures in 2025, Gartner says in report

(Reuters) - Several European and North American car factories are at risk of being closed or sold this year as automobile brands struggle with overcapacity and price competition, research and advisory firm Gartner said in a report on Thursday.

Automakers will likely cut production capacity on the two continents in 2025 as they face emissions targets and tariffs, while China's electric vehicle (EV) dominance will increase due to its edge in software and electrification, the firm said.

Closures or sales are more likely in high-cost countries, where political and societal pressure will be offset by mounting competition, Gartner VP Analyst Pedro Pacheco told Reuters.

"This is a little bit like a pressure cooker," Pacheco said. "The pressure increases, increases and... that will push the number of automakers to take more pragmatic decisions."

Chinese brands could buy plants to overcome trade barriers, or open new factories in lower-cost European countries and free-trade partners like Morocco or Turkey, the firm predicted.

Fearing disruptions from 2025 European Union CO2 emission rules, the CEO of German auto supplier Bosch, Stefan Hartung, told the publication Auto Motor und Sport on Wednesday the bloc should abstain from fining companies that fall short of targets.

Europe's auto industry is no longer on track to reach its 2030 and 2035 EV targets, said Luc Chatel, chairman of the French car lobby PFA.

"The risk is that we end up reducing combustion engine vehicle sales to artificially beef up" EV sales, he told Reuters.

Despite the challenges to electrification, Gartner expects shipments of electric buses, cars, vans and heavy trucks to grow overall by 17% in 2025. It forecast more than 50% of all vehicle models marketed by automakers to be EVs by 2030.

To achieve the shift, legacy carmakers may buy software architecture from newer EV makers and digital firms, boost research and development centres in tech hubs or partner with tech companies to create self-funded EV joint ventures, Pacheco said.

(Reporting by Alessandro Parodi in Gdansk, Gilles Guillaume in Paris and Ilona Wissenbach in Frankfurt, writing by Alessandro Parodi; Editing by David Gregorio)

Recommended for you

  • RapidCents Enhances Merchant Payment Processing and Chargeback Protection with DeepSeek AI

  • Automakers urge USDOT to quickly restart federal EV charging program

  • International Criminal Court prosecutor Khan first to be hit by U.S. sanctions, sources say