‘Europe’s Detroit’ is losing its shine as an automotive powerhouse

Published

2 days ago

October 23, 2025

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A Kia Sportage automobile in the quality control inspection area at the Kia Slovakia sro plant in Zilina, Slovakia, on Friday, Oct. 27, 2023.

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Slovakia, a small landlocked country in the heart of Europe, faces a perfect storm as it seeks to protect its enviable automotive reputation.

From the establishment of the Bratislava Automobile Works (BAZ) in the early 1970s through to the fall of communism and its subsequent ascension to the European Union, Slovakia has positioned itself as the world’s leading producer of cars per capita.

Nicknamed “Europe’s Detroit,” the mountainous nation of just 5.4 million has attracted major manufacturers such as Volkswagen, Stellantis, Kia and Jaguar Land Rover.

Sweden’s Volvo Cars is also poised to open an electric vehicle factory near Kosice in eastern Slovakia, representing the country’s fifth manufacturing facility.

Such is its dominance, Slovakia’s auto industry currently accounts for roughly 11% of its gross domestic product, half of the country’s industrial output and about one-tenth of its total employment.

A multitude of challenges, from U.S. tariffs and Chinese competition to higher domestic taxes and a geopolitical shift away from the EU, threaten to undermine its standing as a world leader in car production, however.

Matej Hornak, an analyst at Slovenská Sporiteľňa, Slovakia’s largest bank, described Slovakia’s auto sector as uniquely exposed to Trump’s tariffs when compared to others in Central and Eastern Europe.

That’s because Slovakia’s exports to the U.S. represent 4% of its total exports, Hornak said, with approximately 80% of that volume consisting of cars.

Zuzana Pelakova, director of the economy and business program at Globsec, a think tank based in Slovakia’s capital of Bratislava, singled out U.S. tariffs as the top near-term risk to Slovakia’s auto industry.

“The main immediate risk, more than the EV transition and all the other ones, is tariffs. This is a significant challenge,” Pelakova told CNBC by telephone.

“I would say now, in the current situation, the U.S.-EU trade alliance has stabilized, and tariffs have been lowered to 15%, which is certainly better than the initial proposal but is still challenging,” she added.

The U.S. and EU agreed to a framework trade deal in July, with U.S. Donald Trump’s administration imposing a blanket tariff of 15% on most EU goods. The agreement marked a significant reduction from Trump’s threat to impose charges of 30% and almost halved the tariff rate on Europe’s auto sector from 27.5%.

Industry groups, which tentatively welcomed the trade deal, expressed deep concern about the costs associated with the new tariff reality.

Workers install chassis components onto a Kia Ceed automobile on the assembly line at the Kia Slovakia sro plant in Zilina, Slovakia, on Friday, Oct. 27, 2023.

Bloomberg | Bloomberg | Getty Images

“While a decline in U.S. demand poses a challenge for Slovak carmakers, they are simultaneously facing pressure in other markets as competition from Chinese manufacturers intensifies,” Hornak told CNBC by email.

“U.S. tariffs are thus only one piece of the puzzle — the broader picture requires closer attention,” he added.

EV transition

Slovakia has suffered a couple of notable setbacks on the road to full electrification in recent months.

Volkswagen opted for Portugal over Slovakia for its new electric ID.1 model, while Stellantis, which has the Trnava plant in western Slovkaia, picked Spain as its destination for a new EV.

Nonetheless, Slovenská Sporiteľňa’s Hornak said the country’s car plants still appear to be competitive within their respective corporate groups for the allocation of EV production.

There is a lack of targeted governmental and institutional support for the industry’s transformation. In fact, the situation is quite the opposite.

Matej Hornak

Analyst at Slovenská Sporiteľňa

Volvo’s upcoming EV plant in eastern Slovakia, for instance, represents “one of the most significant investments in this field,” Hornak said, with China’s Gotion High Tech and Slovakian partner InoBat set to build an EV battery plant reflective of “another key investment.”

“On the other hand, there is a lack of targeted governmental and institutional support for the industry’s transformation. In fact, the situation is quite the opposite: due to fiscal consolidation measures, the business environment in Slovakia is deteriorating,” Hornak said.

“The increasing tax and levy burden on companies — such as the introduction of a transaction tax — further disadvantages domestic businesses in the international market,” he added.

Russian President Vladimir Putin (R) talks to Slovak Prime Minister Robert Fico (L) during their bilateral meeting, September 2 2025, in Beijing, China.

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Prime Minister Robert Fico’s government has raised taxes and imposed new levies on financial transactions as part of a broader push to repair the country’s troubled public finances. The measures, which stoked tensions within the ruling coalition, have been criticized by Slovakia’s auto industry.

Alexander Matusek, head of Slovakia’s Automotive Industry Association (AIA SR), told Bloomberg in late May that Fico’s government risked hurting the country’s auto sector with tax rises, as well as a geopolitical shift away from major trading partners.

A Slovakian government spokesperson did not respond to a CNBC request for comment.

Strategic risk

Fico’s government has been at odds with the EU’s approach to Russian President Vladimir Putin’s full-scale invasion of Ukraine.

The Slovakian prime minister said earlier this month that he would refuse to support tougher EU energy sanctions against Russia unless the bloc first tackles rising energy costs and mounting pressure on the region’s car industry.

Thousands of people took to the streets of Bratislava last month to protest over a meeting between Fico and Putin, in an escalation of previous demonstrations over Fico’s pro-Russia stance.

Protesters hold signs and flags during the second anti-government protest in a row, in Kosice, Slovakia, on September 23, 2025.

Anadolu | Anadolu | Getty Images

“The Slovak government’s more accommodating stance toward Russia and its higher euroscepticism create additional uncertainty for Slovak companies, adding another layer of strategic risk to their planning,” Hornak said.

“As a result, Slovakia is increasingly perceived by European leaders as a less reliable partner, which may negatively influence investment decisions — both from existing investors and potential new entrants,” Hornak said.

Europe’s Detroit vs. Motor City

Globsec’s Pelakova said that while Slovakia’s auto industry faces several challenges, comparisons to America’s Motor City could do with some nuance.

“There’s definitely challenges but not in a sense that it will derail the trajectory currently, which brings us back to the initial Detroit comparison, which I don’t think we’re headed to,” Pelakova said.

“I would say there are two layers to that comparison because you can see that this is so significant and major carmakers were made in Detroit. Yes, that’s a comparison that I agree with, and I think it’s fair. But we know how Detroit ended about 30 to 40 years ago, so that bit, I wouldn’t necessarily compare,” she added.

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Chevy Equinox EV and another Cadillac electric SUV recalled due to tire defect

Published

16 mins ago

October 24, 2025

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Chevy Equinox EV and another Cadillac electric SUV recalled due to tire defect

GM is recalling nearly 23,000 Chevy Equinox EV and Cadillac Optiq models due to a defect where the tire tread could fall off.

GM is recalling more Chevy Equinox EV models

In a letter sent to the National Highway Traffic Safety Administration (NHTSA), GM said it has decided to issue a safety recall for certain Chevy Equinox EV and Cadillac Optiq models from model years 2025 to 2026.

This time, it isn’t necessarily GM’s fault. The vehicles may be equipped with 21″ all-season tires that Continental Tire is recalling.

According to Continental, the tires were produced during the week of October 6, 2024, and may have a defect where the tire tread could partially or fully detach. The records show the defect is due to a nonconforming tread base rubber compound.

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Owners of affected vehicles may notice unusual tread wear or bulging, vibration while driving, or tire noises. GM is unaware of any incidents related to the defect, but is issuing the recall out of an abundance of caution.

Cadillac-Optiq-EV-recall — Cadillac Optiq EV (Source: Cadillac)

On September 18, 2025, GM inspected the assembly plant and confirmed there were no suspect tires in stock. The 21″ tires come standard on RS trims and are optional on LT1 and LT2 grades.

Although GM is recalling 22,914 Chevy Equinox EVs and Cadillac Optiqs, it estimates that only about 1% of them have the defect.

The recall includes:

2026 Cadillac Optiq: 214
2026 Chevy Equinox EV: 1,832
2025 Cadillac Optiq: 3,468
2025 Chevy Equinox EV: 17,400

GM dealers will check all four tires and replace them if needed, free of charge. Dealers were notified on October 16. Owner notification letters are expected to be mailed out on December 1, 2025.

You can contact Chevrolet’s customer service number at 1-800-222-1020 or Cadillac’s at 1-800-333-4223. GM’s recall number is N252525030. Owners can also call the NHTSA hotline at 1-888-327-4236 or visit the nhtsa.gov website for more information.

The Chevy Equinox EV is now the third best-selling EV in the US, trailing only the Tesla Model Y and Model 3. Meanwhile, Cadillac’s entry-level Optiq SUV is the fifth-most-popular luxury EV. The recall is minor and only affects a small percentage of models, so it’s not expected to have a major impact.

If you want to test one of them for yourself, we can help you get started. Check out our links below to find available Chevy Equinox EV and Cadillac Optiq models near you.

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Podcast: TSLA earnings madness, Rivian layoffs, Ford pauses F-150 Lightning, more

Published

1 hour ago

October 24, 2025

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Podcast: TSLA earnings madness, Rivian layoffs, Ford pauses F-150 Lightning, more

In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Tesla’s earnings madness, Rivian layoffs, Ford pausing F-150 Lightning, and more.

The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:

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We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.

Here are a few of the articles that we will discuss during the podcast:

Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:

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Tesla Cybertruck owners thought they were victim of vandals, turned out to be a defect

Published

2 hours ago

October 24, 2025

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Tesla Cybertruck owners thought they were victim of vandals, turned out to be a defect

Some Tesla Cybertruck owners thought they were victims of vandalism, but it turned out that it was just a factory defect.

Earlier this year, amid Elon Musk’s controversial involvement in politics, there was a noticeable surge in vandalism against Tesla vehicles, particularly Cybertrucks.

Therefore, it’s not too surprising to see some owners worried that they were victims of vandalism when strange inscriptions appeared on their electric trucks.

Earlier this week, a Tesla Cybertruck owner posted on a Cybertruck Facebook group:

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Any ideas how to remove a hydrochromic paint? Some person vandalized my truck. It only appears when wet.

The owner shared images of what he believed was invisible ink being used to vandalize his truck:

Several other owners chimed in and confirmed that they weren’t alone with this issue.

However, it is not vandalism. It’s a problem with Tesla’s protective film at the factory.

Another Cybertruck owner, Christian Maciel, had the same issue. He brought it to the Tesla service and shared the technician’s report.

The report mentioned “other owners report different initials (‘MPS’, ‘BLT’, ‘WC’)” showing up on the B pillar when wet – confirming that it is a widespread problem.

The culprit is an imprint from the factory protective film. Tesla wrote in the report:

Technician inspected the driver-side B-pillar and verified the presence of a persistent mark (‘BVT’) that appears when wet, confirmed as residue from factory protective film. The issue was caused by residue left after the removal of the factory’s protective film. Technician replaced the left-hand B-pillar applique to address the issue. The fix was validated by ensuring the mark no longer appears when the surface is wet.

They had to fully replace the part: