Portuguese component manufacturers raise concerns over automotive industry crisis impact

euronews (in English)

The Portuguese automotive manufacturing industry's exports are predicted to fall in November and December, as demand for new cars slows across Europe.

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00:00Car factories are closing across Central Europe, with plans for job cuts among major manufacturers

00:07and a number of managerial resignations.

00:11Disrupted by the pandemic, challenges in transitioning to electric mobility, rising Chinese competition

00:17and declining sales are contributing to the crisis.

00:22The Portuguese industry is unlikely to remain unaffected, as 98% of cars in Europe contain

00:28at least one component made in Portugal.

00:52The impact will primarily affect automotive component manufacturers.

00:56This sector includes around 350 companies, employs 64,000 people and generated over

01:0314 billion euros in 2023.

01:26The car market in Portugal is still growing, up about 4% from the previous year.

01:47But the EU is aiming to phase out combustion car production by 2035, while electric car

01:53sales face challenges like high costs and inadequate charging infrastructure.

02:23The effects of the crisis in the European automotive industry are already felt in Portugal,

02:36but the sector anticipates that the worst is yet to come.

02:39Joana Marão Carvalho for Euronews in Lisbon.

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