Europe can only be replaced by Europe

The world is currently in the middle of a long phase of change. Individual political and economic goals will influence this change more than in the past. Those who influence it have become more numerous. Europe, the automotive industry and the European aluminium foundry industry are likely to be particularly affected by this development.

“What has happened so far”

Until the beginning of 2000, the USA, Japan and Europe were the leading regions in the global automotive industry. The number of major car manufacturers was manageable and essentially limited to these 3 regions.

The aluminium foundry industry in these regions has developed into a global benchmark during this time, partly due to its high mutual importance and dependence on the automotive industry.

First and foremost, it was the European automotive and foundry industries that jointly developed and industrialised milestones in lightweight automotive construction through a high level of expertise and good cooperation.
As a result, the success stories of the automotive industry and the aluminium foundry industry in Europe are inextricably linked through lightweight automotive construction.

Global car production has picked up speed since 2020. China has become the fourth major region to enter the automotive production market (car production in China 2000 approx. 2 million cars → 2020 approx. 25 million cars).

As in the USA, Japan and Europe, the aluminium foundry industry in China has also grown with the automotive industry (aluminium casting production in China 2000 approx. 0.8 million tonnes → 2020 approx. 7.5 million tonnes). American, Japanese and above all European companies have benefited from this growth, invested in China and exported expertise to China.

China car production Graphic / JMC Research

China aluminum casting production graphic / JMC Research

The start-up of electric vehicles began around 2015. This finally gave China the opportunity to play a significant role in the international automotive market.

However, the main pioneer of electromobility was Tesla. One of the levers of Tesla's success was the industrialisation of GIGA casting. No less impressive than the industrialisation of GIGA casting by Tesla was the speed with which Chinese companies in particular “copied” this partly new technology. In China, there has been a real hype surrounding the aluminium foundry industry and GIGA casting in special. Enormous and in some cases still unutilised capacities have been created.

Overview of chinese GIGA casting machines / Handtmann

Technologically, a largely functioning and competitive foundry production network has been established in China. Economically, a competitor has emerged that has enormous advantages over the previously leading regions in almost all key cost items (fixed and variable costs) of traditional casting costing.

In Europe, there has been no comparable hype surrounding GIGA casting to date. Irrespective of this, the economic benefits are also viewed very favourably here under certain conditions. GIGA casting will also be increasingly used in Europe for new car production sites. Technologically, the entire foundry value chain in Europe is capable of doing this.

“Where is the journey going?”

After the long “crisis” in the European automotive industry, experts see light at the end of the tunnel in the medium term. Even if the peak figures from 2017 will not be reached again in Europe.

Another positive sign is that lightweight automotive construction is alive and well. Ducker assumes in a study (12/22) that the aluminium casting requirement per car will increase from 123 kg/car to 145 kg/car in 2030. On this basis, we (JMC) assume that the production of aluminium castings in Europe will be at least 5.2 million tonnes in 2030. Other experts believe that this figure will be significantly higher.

Overview of chinese GIGA casting machines Aluminum die casting production in Europe Graphic / IKB

The demand and the market exist. If the European automotive industry and the European foundry network want to benefit from this and continue to be successful both nationally and internationally, competitive cost targets must be achieved.

“Accepting change is not the question, it's the answer”

In the past, a local cost optimum was often sought for individual process steps in the product development process (e.g. development and construction of a die casting mould). This approach was successful for a long time but will not be sufficient in the future.

To realise Total Cost of Ownership (TCO) on the Final product, the passenger car, benchmark know-how is required along the entire product development process.

The automotive industry in Europe and the European foundry network are able to do this. Cooperation and a common goal (TCO) are the guarantee of success. As part of the EUROGUSS Executive Circle (EEC), decision-makers from 60 companies in the European foundry network discussed this and other topics.

EUROGUSS Executive Circle participant list / Nuernbergmesse

One of the EEC's initiatives has come to the conclusion that in Europe, costs can be reduced by up to 20 % and time to market by 30 % through cooperation between all companies involved in the product development process (including OEMs) and the common goal of TCO in relation to the Final product. In addition, technological benchmarks are achieved.

In a market that is growing again, with exceptional expertise, the will to succeed and the willingness to change, the following applies:

Europe can only be replaced by Europe!

EUROGUSS Executive Circle: July 1–2, 2025, Milan

Participants of the EUROGUSS Executive Circle gather in one room.

Decision-makers from the European die casting industry will hold in-depth discussions on the future of the industry and develop solutions. Leaders from across the entire value chain will meet again on 1 and 2 July. Under the motto ‘Less Past, More Future’, participants will talk about customers and markets, international visibility and marketing as well as employer branding. Interested in attending? Register early, as spaces are limited.

Learn more!