Europe Went All In On EVs. Now Its Automakers Are Losing Out

Global EV sales in 2025 rose 20% year over year to more than 20 million units worldwide, with Europe driving much of the growth as sales jumped 30%, according to the International Energy Agency. Still, European automakers are struggling to profit from EVs. Volkswagen, Europe’s largest EV maker, said in September it would lay off 50,000 workers. Stellantis reported 22.2 billion euros ($24.9 billion) in EV “reset” write-downs in the second half of 2025, blaming overinvestment. Volkswagen’s operating margin fell to 1.8% in 2025 from 5.6% in 2024, and it announced an additional 50,000 job cuts. The article points to pressure from aggressive Chinese competition and government mandates pushing EV adoption regardless of demand.