Breakingviews - COMMENTARY: EU carmaker turnaround hopes look doomed

A Reuters Breakingviews analysis argues that hopes for a turnaround at European carmakers look increasingly unlikely as China-driven competition intensifies. The piece notes Volkswagen, which trades at around 4 times forward earnings, as well as Stellantis and Renault, all face bleak market realities reflected in low valuations. It says there’s no sign of an imminent policy “rescue” from Brussels, and that mergers and further cost cuts may not fix structural problems. The article points to weaker demand and manufacturing shocks, including higher costs after the 2022 Russia-Ukraine invasion. It highlights Chinese brands such as BYD, MG and Chery, supported by Beijing’s industrial policy and advanced battery tech.