By next year, the demand for cars in Europe will significantly weaken, according to Opel CEO Karl-Friedrich Stracke. At the Automobilwoche annual conference in Berlin, Stracke said that the European automobile market will “experience a painful cooling” and that the market will significantly shrink. Automobilwoche is a sister publication to Automotive News Europe. He clarified that the European sovereign debt crisis was making the future uncertain among consumers.
Stracke told 300 auto industry executives that the automobile industry is “especially affected by this." He explained that Opel believes that electric cars will have a major role in the future of the industry but only until EVs could achieve a range of 300 km.
He asserted that electric cars aren’t prepared for the mass market. Stracke said that government subsidies will be a crucial factor in increasing EV sales. Stracke also said that internal combustion engines will still be the main propulsion systems for cars for the upcoming years so that there’s room to boost engine efficiency by 20% to 30%. [source: Autonews]