DEEP DIVE

Europe is regaining importance as a sourcing and production market in many industries, for example for the production of battery cells for the local sales market for electric vehicles. However, this does not mean that companies are closing themselves off to non-European markets.

Of the companies that are planning to open up new markets in the next three years – that's seven out of ten – 85 percent also intend to leverage potential outside Europe. While Europe is at the top of the list of the most promising potential markets at 66 percent, almost half of respondents are now (even more) focused on Asia (47 percent), followed by North and South America at 37 and 33 percent, respectively. The Middle East (26 percent), Africa (17 percent), and Oceania (11 percent) bring up the rear among the most attractive potential markets.

There will, therefore, be no alternative to non-European markets in the future due to a lack of local sources for certain key materials. This list includes energy, rare earths, rechargeable batteries, semiconductors and more – not least because procurement channels and production structures cannot be relocated overnight. There can therefore be no question of strict deglobalization in the sense of a Europe-centric outlook, and China also remains a key sales market for global corporations. 

"Globalization is unstoppable, current (trade) conflicts will not change that. Nevertheless, cooperations and economic interdependencies need to be more flexible," says Frank Fiedler, CFO of Volkswagen Financial Services AG.