Authored by Kevin Stocklin via The Epoch Times,
Global sales of electric vehicles (EVs) in 2025 increased by 20 percent over the previous year, exceeding 20 million units worldwide, with much of the increase driven by Europe, where sales jumped by 30 percent, according to the International Energy Agency (IEA).
But even in a red-hot market, European carmakers are struggling to turn a profit on EVs.
50K LAYOFFS
Volkswagen, Europe's largest electric vehicle maker, announced in September that it would lay off 50,000 workers.
Stellantis, Europe's second-largest auto manufacturer, reported write-downs of 22.2 billion euros ($24.9 billion) as part of its EV "reset" in the second half of 2025, largely due to overinvestment in electric cars.
Operating profit margins at Volkswagen, Europe's largest carmaker, fell to 1.8 percent in 2025 from 5.6 percent in 2024, and the company announced that it would lay off an additional 50,000 workers, amounting to 15 percent of its workforce.
Europe's automakers are caught between two adversaries: Chinese automakers that are aggressively taking market share and undercutting profit margins, and their own governments, which have attempted to force a complete transition to EVs regardless of consumer demand.
