Ferdinand Dudenhöffer Warns of 20-Year Technology Gap Between Europe and China
BOCHUM, 2 February 2026 – Professor Ferdinand Dudenhöffer, the director of the Center Automotive Research (CAR) in Bochum, has issued a stark warning regarding the future of the European automotive industry. In a series of recent assessments, the veteran economist asserted that Europe now trails China by two decades in battery technology development, while simultaneously criticising domestic German policy for failing to address structural crises.
The Battery Technology Divide
According to Dudenhöffer, the competitive landscape for electric vehicles (EVs) has shifted dramatically in favour of East Asia. He stated that Europe is “20 years behind China” in the battery sector, a gap that threatens the long-term viability of European manufacturers if they continue to rely on inefficient local supply chains. Dudenhöffer emphasised that cooperation with Chinese suppliers is no longer optional but essential for German carmakers to remain relevant in the global market.
The expert also highlighted that while European firms like Volkswagen, Mercedes-Benz, and Stellantis are currently implementing management cuts, these measures are unlikely to solve the underlying crisis. He argues that the industry needs to regain its strength by focusing on high-volume markets, specifically China and India, rather than relying solely on cost-cutting at home.
Criticism of German EV Subsidies
Dudenhöffer has also emerged as a vocal critic of the German government’s latest electric vehicle subsidy programme. He described the initiative as a “tax-funded subsidy” that provides only a temporary boost rather than a sustainable solution. He warned that a “small e-car boom” triggered by these incentives would do little to secure long-term employment in the German automotive sector if the technological core—the battery—remains dominated by foreign entities.
Geopolitical and Economic Concerns
Beyond technology, Dudenhöffer pointed to the cooling economic ties between Germany and the United States. He noted that current U.S. foreign and economic policies are increasingly “harming European and German interests,” leading to a slide in investment and exports. This geopolitical friction, combined with China’s rapid advancement, places the German automotive industry in a precarious position between two major global powers.
Key Industry Indicators: Europe vs China
| Metric / Issue | Dudenhöffer’s Assessment |
|---|---|
| Battery Tech Gap | Europe lags 20 years behind China |
| German EV Subsidies | Ineffective “tax-funded” temporary fix |
| U.S.-German Relations | Policies harming European economic interests |
| Strategic Necessity | Essential to maintain deep ties with Chinese market |
Frequently Asked Questions
Who is Ferdinand Dudenhöffer?
Ferdinand Dudenhöffer is a prominent German automotive economist and the director of the private Center Automotive Research (CAR) in Bochum. He is widely regarded as one of Germany’s leading “Car Popes” (Autopapst) due to his long-standing influence on industry analysis.
Why does he believe Europe is 20 years behind China?
Dudenhöffer cites China’s massive investment in battery chemistry, raw material supply chains, and manufacturing scale over the last two decades. He believes Europe’s late start and fragmented supply chain have created a generational gap in technology and cost-efficiency.
What is his view on the current state of German carmakers?
He views the current management and board cuts at major firms as a “mask” for deeper structural problems. He advocates for increased investment in China to meet market demands and warns against protectionist policies that could alienate essential Chinese technology partners.