1520 GMT - Chinese competition is helping to hold European automakers' production volumes well below peak levels, analysts at J.P. Morgan write, as shares in the continent's auto sector fall. Lower exports from Europe to the rest of the world, higher demand for used cars within Europe, and the continuing impact of tariffs mean production in Europe is now running below sales, a trend not seen in the past decade, the analysts write. Automakers will look to collaborate or even merge to compete against Chinese rivals, the analysts add. Volkswagen falls 2.6%, while Renault and Mercedes Benz drop 2% and 2.3%, respectively. Porsche falls 1.85%. (josephmichael.stonor@wsj.com)

(END) Dow Jones Newswires

January 05, 2026 10:20 ET (15:20 GMT)

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