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automotiveIT I.C.

automotiveIT I.C.

Only consolidation and technology will put the European auto industry back on the road

Martyn Warwick
By Martyn Warwick

Oct 9, 2014

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Arndt Ellinghorst Senior Managing Director, Head of Global Automotive Research Team, ISI – International Strategy and Investment

You thought telecoms had it tough?  According to auto industry analyst, Arndt Ellinghorst, 60 to 70 per cent of European cars are sold at a loss, he tells Martyn Warwick. That in turn means that nearly all European car-makers are currently loss-making enterprises.
As in telecoms, the European Commission is reluctant to allow consolidation to ease the situation. But unlike telecoms European demographics are working against the industry: the average citizen is getting older (and older people spend less on cars) while the young demographic no longer holds the auto in high regard. Part of the answer lies in on-board technology and connectivity.

Filmed at the AutomotiveIT International Congress, London, July 2, 2014

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