US was investing in AI powered self-driving tech, China was investing in new EV motor and battery tech with advanced manufacturing automation to cut costs, EU makers were just reselling diesel engines with fancy badges hoping the EV and self-driving fad will pass. EU car industry went from decades of being the global trend setter in terms of designs and technology, to being the follower, at least in technology.
Also, a lot of the manufacturing costs in EU not just for the auto sector, is now majority made of taxes, compliance, bureaucracy and labor's cost of housing. If you import workers they'll be under the same high compliance rules, and same expensive housing pressures, unless you bet they'll accept to live in slum-like conditions in order to undercut the locals, in which case you might as well cut the facade and just advocate for return to slavery.