Thomas Hegel Gunther, CEO of Autoeuropa, emphasized that productivity gains are essential for Portugal and Europe to regain competitiveness in the global automotive market—particularly in light of strong competition from Asia. Speaking at the Portugal Mobi Summit, Gunther noted that although Portugal boasts skilled labor and engineering talent, it faces a logistical disadvantage due to its peripheral location relative to central and northern European markets.
To counteract this, Gunther said Portugal must “be even more competitive than other regions,” referencing factors like energy and labor costs. He also argued for sustained Volkswagen investment and employment in Portugal, especially as the Palmela factory gears up to produce the new electric ID. every1 model in 2027. This project, priced around €20,000, aims to make electric mobility more accessible to the broader public.
Gunther also pointed to the broader policy landscape, urging the EU to support not just large automakers but also the many small and medium-sized suppliers that are vital to the sector’s ecosystem. In Palmela alone, a strong network of component manufacturers has grown around Autoeuropa.
Looking ahead, Gunther said the European car industry is undergoing its biggest transformation ever, facing environmental targets, digitalization, and intensifying global competition, especially from Chinese EV makers. He criticized Europe’s heavy regulation—particularly the ban on autonomous vehicle testing zones—and called for better frameworks to enable innovation in AI and automation.
Despite the challenges, VW is committing over €200 million to decarbonize its operations, including a new paint system expected to reduce emissions by 90%. Gunther stressed that sustainability must encompass the entire value chain, not just the final product.
The bottom line: if Europe and Portugal want to lead in the next era of mobility, they’ll need to innovate faster, cut red tape, and boost efficiency—or risk being left behind.
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