The US's new import tariffs on cars are hitting Germany's car industry hard. CLEPA fears massive job losses and a 30 percent drop in exports to the Americans.
The US import tariffs on new cars are creating uncertainty in Europe. The German car industry could be hit hard.
The industry organization CLEPA warns in a new report about the consequences. At least 15,000 jobs at German subcontractors are at risk due to Donald Trump's tariff policy.
This is evident from a new report from CLEPA. The report paints a worrying picture for the sector.
Exports of cars and parts to the US are expected to fall significantly. CLEPA predicts a drop of at least 30 percent.
If the drop in exports were to be even greater, the consequences would be worse. A 50 percent drop would threaten up to 25,000 jobs in Germany alone, it says.
CLEPA represents European subcontractors to the automotive industry. The organization sees the tariffs as a serious threat.
Secretary General Benjamin Krieger expresses great concern. He calls the tariffs a "significant threat" to the automotive industry as a whole.
CLEPA: US import tariffs threaten the automotive industry
The CLEPA survey shows widespread pessimism. Many subcontractors have a gloomy view of the future.
Almost six out of ten companies surveyed are pessimistic. They primarily view the coming months negatively.
Four out of ten of the subcontractors surveyed doubt profitability. They see no path to profit this year.
This underlines the economic uncertainty. The tariffs come at a sensitive time. The European automotive industry faces several challenges.
Trade conflicts are one of them. Another is that demand for electric cars is not up to par with the production that many car brands have geared themselves for.
That's why one car brand after another is currently breaking promises to only build electric cars around 2030.
Job insecurity and declining car exports
The US import tariffs are putting pressure on an important export sector. Germany is particularly vulnerable due to its large car production.
The job losses will not only hit the major car manufacturers. The entire network of subcontractors will be affected.
This creates ripples in the German economy. Many local communities are directly dependent on the automotive industry.
Uncertainty also affects the desire to invest in development. Companies may postpone new projects and hiring.
While others are cutting off entire parts of the company. This is the case, for example, with the German Continental, which has cut off its entire Automotive department as an independent company.
In fact, the automotive industry is facing such major challenges that experts are now warning of mass bankruptcies. Read more about it here .
