By TIMOTHY MINCHIN, PROFESSOR OF HISTORY AT LA TROBE UNIVERSITY and MICHELLE SHU WUN KUEK, DOCTORAL STUDENT IN HISTORY FROM LA TROBE UNIVERSITY In Germany, Japan and the US, famous carmakers are in trouble. One reason is intense competition from Chinese electric vehicle manufacturers and growing public demand for EVs. The automakers who dominated the 20th century have largely failed to shift to electric.Volkswagen was once the biggest carmaker in China. Now it only has a bit part. In June, it announced plans to cut 100,000 jobs worldwide.'We have no chance against this,' admitted Honda CEO Toshihiro Mibe after visiting a high-tech EV factory in Shanghai. Months earlier, Ford CEO Jim Farley warned Western carmakers were 'in a fight for our lives'.In 2025, Chinese factories produced almost 75 per cent of the world's EVs. As more and more drivers go electric, esteemed brands and luxury carmakers have been forced to close factories and scrambled to stay relevant. The global shift to EVs has accelerated amid the US-Iran conflict.China's rise wasn't a given. It was a gamble. But it is now paying off, and legacy automakers are struggling to cope. In Germany, Japan and the US, famous carmakers are in trouble due to intense competition from Chinese electric vehicle manufacturers (Pictured, a popular BYD chinese car) Volkswagen was once the biggest carmaker in China. Now it only has a bit part (file image)
How China crushed the biggest brands - and changed Aussie roads
As more drivers go electric, esteemed brands and luxury carmakers have been forced to close factories and scrambled to stay relevant.











