It's been almost two years that China's biggest EV maker and Tesla Inc (TSLA  ) rival, BYD (BYDDY  ) entered the EU and the UK. While BYD marches on, traditional automakers like Ford Motor (F  ), General Motors (GM  ) and Volkswagen (VWAGY  ) are struggling to adapt to the new EV era.

Ford Is Struggling To Make Its EV Business Work

With its EV business continuing to lose money, Ford is trying to turn things around. Even electrifying its best-selling F-150s, America's best-selling vehicle of 42 years, didn't solve EV issues for Ford. Despite its luster, the electric version of F-150, the Lightning, was not a game changer for Ford. Moreover, Electrek reported that GM is narrowing the gap. With GM expanding its lineup across key EV segments, covering both low-cost and luxury ends, GM has the momentum on its side and could surpass Ford this year, especially considering the setbacks Ford has faced, including canceling its three-row electric SUV.

But Ford is not alone in its struggles, with all legacy automakers both in the U.S. and in Europe facing increased competitive pressure from China, while they deal with high inventories, falling prices, and weakening consumer demand. Europe's largest automaker, Volkswagen has not only lost its strength in China to BYD, but it is also struggling on the home front.

Tensions At Volkswagen Are Running High

On Wednesday, union leaders in Germany have threatened with strikes as they warned Volkswagen of making a 'historic mistake' if management decides to pursue layoffs and plant closures. Volkswagen literally shocked both its employees and the world by announcing earlier this month it is considering to close plants in its home country, for the first time in the automaker's 87-year-old history. AFP reported that Volkswagen has disappointed its workers by being too vague and failing to concretize its turnaround plan.

Earlier this year, Volkswagen entered into an agreement with XPeng (XPEV  ) to improve its odds in China, but XPeng is also eyeing Europe, and therefore also threatening Volkswagen on its home continent. XPeng just showcased its latest technology in Stockholm. Also, XPeng used the opportunity to reaffirm its European expansion plans, with Spain, Portugal and the UK being on the itinerary for the second half of the year.

Moreover, XPeng is also considering an EV manufacturing base in Europe. Therefore, while joining forces with XPeng to tackle the Chinese market was a sensible move, this did not shield Volkswagen against a rising rival that already entered its home market back in March.

Chinese EV Makers Are Steaming Ahead

Despite the global EV slowdown, Chinese EV makers are not pushing the brakes.

China is determined to win the race to EV dominance. By the looks of it, it is leading the way. Consequently, the automotive landscape is undoubtedly evolving in the EV era that is in the making. Unfortunately, the changing face of the automotive industry does not look too good for legacy automakers that lack a systematic response to China's EV offensive.