Neil Winton

£65,562 For – great driving experience, standout looks, unbeatable technology Against – autoroute range still lags ICE, divisive looks Competition – Audi A6 e-tron quattro, Mercedes GLC, Polestar 3, Porsche Macan, Tesla Model Y, Volvo EC60, XPeng G9, Zeekr 7X, NIO EL8, BYD Tang, Genesis GV60

The new iX3 SUV EV has to be on the money, not only for the sake of BMW, but also the whole European premium sector under threat from China. Early reports are favorable.

Europe's automotive industry faces a severe crisis, intensified by the EU's 2035 electric vehicle mandate and fierce Chinese competition. Volkswagen's potential 100,000 layoffs and plant closures, alongside profit warnings from other German giants, underscore the urgency. Chinese EVs, 30% cheaper, are rapidly gaining market share, while European profits from China and the US are slumping. This forces EU politicians to choose between protecting high-paying jobs with tariffs or upholding climate goals. Experts warn tariffs could backfire, leading to retaliation and higher consumer costs. Green groups, however, blame the industry's slow adaptation. Meanwhile, Chinese manufacturers are strategically building plants in Europe to circumvent potential tariffs and secure their market presence.

WintonsWorld EV Tests July 2026.

BMW Shareholders Shocked By Profit Warning. “We think it would be premature to “buy the dip”

“The success or failure of this (EV) could influence not only Ferrari's future but also how other luxury performance brands approach the transition to electric vehicles”

BYD, the world's biggest electric vehicle maker, joined the Chinese European incursion late, but it is about to overtake SAIC's MG as the number-one seller from the Middle Kingdom.

Volkswagen faces another critical juncture, pressured to reform its unique ownership structure that prioritizes employees over shareholders. CEO Oliver Blume proposes doubling layoffs to 100,000 and closing four German plants amid slumping Chinese profits, a stagnant European market, and rising Chinese competition. Blume also aims to split the company to bypass the powerful supervisory board, which includes strong union representation. While some analysts warn of an existential threat, others argue VW remains profitable, recalling past crises where drastic structural changes were avoided. The "Volkswagen Law" and employment guarantees complicate radical action, leading many to predict compromises and further delays in fundamental reform, effectively "kicking the can down the road" once more.

European car sales showed surprising strength in the first half of 2026, rising nearly 6%, yet major automakers are slashing profit forecasts. This paradox stems from fierce Chinese competition, which, despite tariffs, leverages a 30% cost advantage and superior software to capture market share, now almost 10%. Local manufacturers like Volkswagen and BMW issued profit warnings, while Stellantis and Renault cut output. Sales growth is expected to slow significantly in the second half, with annual growth potentially only 1% or even declining. The surge in sales is primarily driven by discounted battery electric vehicles, as European makers struggle to meet emission targets and counter Chinese rivals, who are outperforming the market. Geopolitical headwinds and volatile consumer sentiment add to the pressure on the European auto industry.

Volkswagen's recent board meeting yielded limited progress on crucial reforms, with controversial proposals for 100,000 job cuts and plant closures blocked by powerful stakeholders, including unions. While agreeing to simplify models and reduce production capacity, the company's unique corporate structure and internal divisions hinder urgent market-oriented changes. CEO Oliver Blume's ambitious transformation plans face skepticism from experts, who point to struggles in premium brands and the need for a different strategy. VW's efficiency lags rivals like Toyota, exacerbating its vulnerability to China's rapidly advancing, software-defined vehicle market. This complex internal landscape, coupled with intense external competition, makes VW's path to recovery challenging.