German and French brands gloomy about the future and Tesla

“German brands most gloomy about future since 2008,” headlines Bloomberg. That claim is the result of a study that measures the vision of the future of the various car brands and displays it in a number of points, with minus 56.9 points, Bloomberg reports, that number is now 10.3 points lower than last month. The claim about 2008 is not yet entirely correct, but according to Bloomberg, the general mood in the car world is well on its way to the minor mood that was apparently also there just before the previous major crisis. Then the number of points was 67.8.

As a reason for this gloomy look, the car brands cite a whole range of topics. The great uncertainty as a result of the war in Ukraine plays a role, but of course also the difficulty that the Germans have to keep up with the competition in the EV field. In that competition, the main focus is on China, but also on the still all-powerful Tesla. Earlier it became clear that Volkswagen has even reduced EV production somewhat, while the Chinese giant BYD has knocked the German Volkswagen off the throne in China for the first time in 15 years as the most popular car brand there. That hurts.

In France, the disappointment does not come from all brands, but specifically from Stellantis. The CEO of that huge company, Carlos Tavares, expresses his displeasure with the way the French government rolled out the proverbial red carpet for Tesla CEO Elon Musk in May. Musk was then visiting France and spoke with President Emmanuel Macron and Finance Minister Bruno Le Maire, among others. According to Bloomberg and Automotive News, this hurts even more, because Le Maire and Tavares themselves have a much less warm relationship. Le Maire does not like that Stellantis is increasingly opting to move car production to countries where it is more economical, while Tavares says this is necessary to avoid unnecessary risks in these expensive, uncertain times.