German Automakers to Lose Billions When Tariffs Kick In – IOTW Report

German Automakers to Lose Billions When Tariffs Kick In

CTH

The atomic sledgehammer that President Trump just delivered to the German auto industry simply cannot be overemphasized.  A 25% tariff on imported cars and car parts completely negates hundreds of billions in pre-positioned investment dollars by German auto companies in Mexico. 

To give scale to the impact on Germany, consider that German automakers currently have 330 automotive suppliers in Mexico according to information from VDA.  Audi (a subsidiary of Volkswagen) has no U.S. production sites; every Audi sold in America will be subject to a 25% tariff. The Audi brand access to the U.S. market was/is 100% dependent on Mexico, including for manufacturing the Q5 SUV, its top-selling U.S. model. More

11 Comments on German Automakers to Lose Billions When Tariffs Kick In

  1. How do you say “Bend over and spread your cheeks” in German?

    Audi makes a pretty good product, but I’ve noticed that Audi drivers tend to be aggressive and distracted, a bad combination. There are exceptions, of course.

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  2. @Uncle Al,

    “Beuge dich vor und spreize deine Pobacken”.

    I’m guessing my 20+ year Type 1 VW restoration is going to get pushed out further…

    KR

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  3. Remember in the 60’s when seeing any German car other than a VW was a rare event?
    Now when I’m on the road I see more Mercedes and BMWs than the big three luxury brands combined.

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  4. Forgot the lol.
    Germain to the thread. Trump just announced deductions for American made cars that are financed. Just like your mortgage. Fing brilliant.
    Most Mercedes, all BMW suvs, most Volkswagens are made here. Fuck the Euroweenies. Leave my wallet alone.

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  5. The wife drives an Audi. It has 85k miles on it and the plan was to drive it 3 more years. I have had better luck with European cars over the American big 3. The current Audi has had nothing but routine maintenance on it. It still has the original brakes. The Ford Fusion was lucky to get 30K out of a set of pads.

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  6. I am Canadian and I am totally in agreement with President Trump and the tariffs imposed on Canada, Mexico and the European Union. We have ALL been riding the coattails of the USA for too long. When traveling in Europe or Great Britain, I have not seen many (if any!) American made vehicles. However, in Canada (and the United States) I have seen lots of VW’s, Volvos, SAABs, Mercedes, BMWs, Suburus – all European makes.
    I have posted before how I love history and geography! I think President Trump is a “Disrupter” who is doing the major re-alignment of the world’s economies which is very much needed.

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