Across Europe, car companies are cutting jobs and shutting factories - to the extent that some question their very existence. So it's worth asking the question: what's gone wrong with Europe car industry? While some will reach for their own pet conclusions in practice there's something bigger, deeper and less parochial going on here. As the world shifts from petrol and diesel cars to their electric counterparts, a seismic shift is taking place in the global motor industry.
Beijing has long been determined both to dominate this next phase of car production and reduce its reliance on Middle Eastern oil imports - both of which point towards mass electrification of road transport. And those subsidies - alongside cheap energy costs helped by China's relaxed attitude towards coal-fired power - are one part of the explanation for why China has been able to produce cars with far cheaper costs than their Western competitors.
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