Edition: International | Greek
MENU

Home » EU Actually

And Asia is the winner, again...

The EU has few commodities such as oil or gas that it can export, nor does it have many big tech companies

By: N. Peter Kramer - Posted: Wednesday, July 31, 2024

This is mainly due to the arrival of the electric car. Batteries, which account for more than 20 percent of the costs of a new electric car, are largely made outside the EU.
This is mainly due to the arrival of the electric car. Batteries, which account for more than 20 percent of the costs of a new electric car, are largely made outside the EU.

N. Peter Kramer’s Weekly Column

The EU has few commodities such as oil or gas that it can export, nor does it have many big tech companies. However, the EU still has a large trade surplus with the rest of the world. It comes partly from car exports. In 2023, 4.7 million cars were exported from the EU, while 3.3 million were imported. Rich and powerful people all over the world like to show off a Mercedes, Porsche, Ferrari or Maserati. The cars imported are considerably cheaper such as Hyundai, Kia, Nissan or Toyota from Asia.

But there is a cloud in the blue sky. While the trade surplus on car parts was 5.6 billion euros in 2019, it fell to 3.1 billion last year and Clepa, the organisation of EU car parts suppliers, fears that we are heading for a shortage this year: for the first time, more parts will be imported than exported in the EU car industry.

This is mainly due to the arrival of the electric car. Batteries, which account for more than 20 percent of the costs of a new electric car, are largely made outside the EU. Electric and non-electric cars also contain more and more chips, sensors and screens. They are also largely produced in Asia and not in the EU. This is not only detrimental to the EU trade balance, it also makes supply lines vulnerable. A delay in container shipping , due to rebels in Yemen, is causing EU car factories to shut down due to a shortage of parts.

Producing more batteries and chips in the EU seems to be the simple solution. New battery and chip factories are being built in the EU, but proportionally far fewer than in China and the US. A solar penal scenario is imminent: all EU solar panel factories closed here because they were uncompetitive.

READ ALSO

EU Actually

Extreme weather or not, the climate summit in Belem is in danger

N. Peter KramerBy: N. Peter Kramer

That the weather is becoming more and more extreme does not lead to more political urgency

View 04/2021 2021 Digital edition

Magazine

Current Issue

04/2021 2021

View past issues
Subscribe
Advertise
Digital edition

Europe

The EU Needs Values-Based Engagement in the Southern Mediterranean

The EU Needs Values-Based Engagement in the Southern Mediterranean

As the EU prepares a new pact for its Southern neighborhood, the union should balance economic and security interests with support for civil society, political reforms, and inclusive governance

Business

To save the Single Market, bring back Delors’ 1992 playbook

To save the Single Market, bring back Delors’ 1992 playbook

Most people familiar with EU affairs know the single market is a myth. Hailed as the bedrock of the European Union, it was never completed and is now crumbling.

MARKET INDICES

Powered by Investing.com
All contents © Copyright EMG Strategic Consulting Ltd. 1997-2025. All Rights Reserved   |   Home Page  |   Disclaimer  |   Website by Theratron