ECG — 2025-10-23
News from ECG
Although Europe’s vehicle market remains flat, the discussions at this year’s ECG Conference in Amsterdam (16–17 October) were lively and forward-looking.
Under the theme “Changing Technology in a Changing World: The Power of Efficiency Through Innovation in FVL,” experts, stakeholders, and executives from across the Finished Vehicle Logistics (FVL) sector explored how to drive progress in a landscape shaped by regulation, competition, and transformation.
Industry Outlook: Flat Market, High Ambition
Wolfgang Göbel, ECG President, opened the conference with a clear assessment: “The market is flat, and we need to deliver efficiencies.”
He explained that only two European markets, Spain and Poland, showed positive sales volumes, while others remained stagnant. Göbel referred to the Draghi Report on European competitiveness, stressing that little action has followed since its publication.
He highlighted ECG’s role as a facilitator of innovation, mentioning working groups on AI, the rail initiative, eInvoicing with Odette International, and the emission calculation project.
He also announced new workstreams such as a defence and military logistics group, addressing the growing demand from this sector. Göbel summarised that Europe’s competitiveness challenge requires closing the innovation gap, planning for decarbonisation, improving efficiency, and reducing dependencies.
Security and Geopolitics: NATO and Global Challenges
Major General Ulf Häussler, Director of the Operations Planning Division at NATO, brought a strategic perspective.
He described NATO’s mission to protect one billion citizens and safeguard freedom and democracy, outlining the alliance’s new strategic concept and the rise in defence investments, including infrastructure. FVL operators already handle military cargo, and Häussler noted that logistics and transport capabilities are “vital to deterrence and defence.” “There are still many challenges,” he said, “but also opportunities for all of us.”
Following this, Colin Couchman, Executive Director for Global Light Vehicle Sales Forecast at S&P Global Mobility, provided a macroeconomic outlook.
He pointed to ongoing geopolitical tension, high tariffs, inflation that remains sticky, and elevated interest rates, but also some early signs of improvement. He warned that regulation continues to affect OEM competitiveness, with China remaining both a key market and a formidable competitor.
OEM Perspectives: Efficiency, Innovation, and Competitiveness
Klaus Zellmer, CEO of Škoda Auto, outlined three major challenges for European carmakers: decarbonisation, drivetrain transformation, and digitalisation.
He described the current environment as a “polycrisis” of protectionism, instability, and climate pressure. Europe, he noted, is the only one of five global regions (alongside China, the US, India, and Japan) with a strict ICE ban for 2035, which further raises competitiveness pressures.
Zellmer emphasised a holistic approach to CO₂ reduction, beginning with consumers, and explained how Škoda translates efficiency targets into departmental and individual goals.
He underlined the profitability gap between ICE and electric vehicles and called for massive cost reductions to make electrification viable. “I don’t believe in protectionism,” Zellmer concluded. “We need to get leaner, more efficient, more innovative, and deliver better quality and customer experience.”
With reduced activity in Russia, Škoda is looking to India as a growth market. To remain competitive with China’s rapid production cycles, he urged deregulation in Europe, likening today’s situation to “playing football with a backpack full of stones.”
Global Logistics and Market Dynamics
Chris Zuo, Executive Vice President of the China Automotive Logistics Association (CFLP), shared insights into China’s rapid automotive expansion.
The number of motor vehicles has grown from 16 million in 2000 to 359 million in 2025, and Chinese consumers now buy two of every three EVs sold worldwide. In Europe, Chinese brands such as BYD, Chery, MG, Leapmotor, and XPeng are gaining traction, though price gaps remain significant. A BYD model priced at €20,000–31,000 in China sells for €45,000–55,000 in Europe. Chinese logistics capacity is expanding accordingly, with Chinese-owned Ro-Ro vessels increasing from 11 in 2021 to 61 in 2025.
Zuo noted that many Chinese brands are seeking European logistics and rail freight partners to support their exports.
Policy and Regulation: The European Dimension
Christoph Klitz, Special Advisor on Transport Policy at FIPRA, examined the evolving European legislative landscape. He observed the EU’s pivot from a purely green agenda to a broader focus on competitiveness and strategic autonomy.
Referring again to the Draghi Report, he echoed Göbel’s frustration: “Only 11 percent of its recommendations have been implemented, if a company in crisis executed only 11 percent of its strategy in a year, that would be unacceptable.” Klitz shared insights into ongoing debates in Brussels, where progress is often slowed by lack of consensus despite many parallel discussions.
Panels and Innovation Projects
A panel moderated by Steve Young, Managing Director of ICDP, brought together Couchman, Klitz, Andreas Klugescheid (ACEA), and Göbel to debate military infrastructure, Chinese growth, and the cautiously optimistic signs in the European market.
Peter Hörndlein, Managing Director of Vehicle Logistics at Volkswagen Konzernlogistik, presented the innovative AutoLog project in Emden. He explained that the system uses automated driving, distinct from full autonomy, based on external sensor infrastructure.
“From our point of view, this is a step further than other projects, because we’re operating in open space with all kinds of weather conditions,” he said.
The project aims for profitability and scalability, marking a potential step change in the supply chain.
François Prince, General Manager at Renault, closed the speaker sessions by describing how digitalisation and AI are reshaping Renault’s operations. “What used to be exceptional has now become the new normal,” he said, highlighting the company’s network of AI-driven control towers that manage real-time disruptions.
He concluded: “Digitalisation and AI are not optional, they are essential. We can only succeed if we work together with strong, agile, and innovative partners.”
The conference concluded with a second panel, moderated by Prof. Dr. Fridtjof Langenhan, Dean of the ECG Academy, featuring Prince, Karol Niznik (AUTO1 Group), and Hörndlein, reflecting on agility, digitalisation, and the need for continued cooperation across the industry.
Conclusion
The 2025 ECG Conference painted a clear picture: while Europe’s vehicle market may be flat, the industry’s drive for innovation, cooperation, and standardisation has never been stronger.
Through collaboration across OEMs, logistics providers, and policymakers, ECG continues to play a crucial role in ensuring that Europe’s finished vehicle logistics sector remains efficient, resilient, and ready for the future.