The article discusses the repercussions of President Trump's automotive tariffs, emphasizing that the automotive market is undergoing contractions and shifting dynamics. Europe, particularly Germany, is highlighted as the biggest loser, as its economy struggles and major players like Volkswagen face dire challenges due to their heavy reliance on car exports and limited presence in the U.S. market. Analysts suggest that this could lead to further economic consequences and shifts in the global automotive landscape as companies navigate the new trade realities.
"It's very bad," JATO analyst Felipe Munoz said of VW's current predicament. "Volkswagen Group is mainly selling cars from Mexico and Europe [in the U.S.], and their own presence in the U.S. is with three products."
From either lens, boy, is it a bad time to be a European player. Germany's overall economy contracted again last year... Now, with Volkswagen highly dependent on China and with minuscule manufacturing presence in the U.S., the pain will get much, much worse.
Collection
[
|
...
]