Trump returns to the White House, German car giant under attack on three sides
2024-11-11 15:18:32
The re-election of Donald Trump as president of the United States has had a major impact on the global auto industry, especially on the German Big three - Volkswagen, Mercedes and BMW. Trump has demanded that the Big Three invest more in the United States or face new tariffs.
The United States is the largest single export market for German cars, but the market share of pure electric vehicles in the United States is low and is expected to fall even lower under Trump.
German carmakers already have production bases in the United States, but increased investment may require cutting output in Europe, putting them in a tug-of-war between the U.S. and German governments. Plans for a new base in Mexico have also been stymied by Trump's increased taxes.
In addition, the pain of Europe's electrification transformation continues, the German government has cut subsidies, the lack of demand for pure electric vehicles, and the imperfect infrastructure, so that German car manufacturers have suffered setbacks in Europe.
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