The difficult geopolitical situation has led to a sharp increase of energy prices, additionally national and supranational authorities are pushing society and especially the manufacturing industry towards a carbon neutral future. This pressure will even grow in the next years.
Slowdown in global demand
Significant changes in consumer behavior, with a growing trend towards shared mobility, especially in western rural areas, and public transport, impact the traditional vehicle ownership model. This and growing competition from the Far East create enormous tension among European car makers.
The global supply chain complexity, with many components sourced from various continents. The just-in-time delivery and just-in-time manufacturing approach is highly efficient but has proven to be also highly vulnerable to disruptions.
To meet ecology requirements and new regulations, the industry must take steps to reduce greenhouse gas emissions by developing electric and hybrid cars, improving engine efficiency, using biofuels, increasing recycling and reuse of materials, and making the supply chain more sustainable.