Auto Industry Developments

Dated events

1. June 1, 2018 · US steel and aluminum tariffs on the EU, Canada and Mexico take effect
   The US activated 25% steel and 10% aluminum tariffs on its closest trading partners, directly raising costs for carmakers everywhere. Automakers in Europe, Japan, and North America all faced higher input costs and feared retaliatory tariffs on finished vehicles, making investors nervous about future profits. In the weeks that followed, President Trump openly threatened a 20% tariff on all European car imports, keeping the pressure on the sector.
2. May 30, 2019 · Trump announces escalating tariffs on all Mexican imports from June 10
   President Trump announced he would impose escalating tariffs on all goods from Mexico starting at 5%, shocking the auto industry because Mexico is deeply woven into North American car production. Carmakers and parts suppliers suddenly faced the prospect of much higher costs on components that cross the border multiple times during assembly. The threat was suspended about a week later after negotiations, but it exposed how vulnerable global automakers were to sudden trade policy shifts.
3. March 18, 2020 · GM, Ford and Fiat Chrysler close North American plants as COVID spreads
   Ford, General Motors, and Fiat Chrysler announced they would close all North American assembly plants due to the COVID-19 pandemic, and similar shutdowns spread to factories in Europe and Asia. With showrooms empty and consumers too scared to buy, the entire global car industry faced a simultaneous collapse in both production and demand. It took months for factories to restart, and a severe chip shortage that followed would constrain car production well into 2022.
4. Jan. 6, 2023 · Tesla cuts China prices by up to 13.5%, fueling a global EV price war
   Tesla cut prices on its cars in China by up to 13.5 percent and soon followed with deep cuts in the US and Europe, forcing rival carmakers to respond or lose customers. Traditional automakers like Ford, Volkswagen, and BYD's competitors worried they would have to match the lower prices, squeezing their already thin profits on electric vehicles. Over the following months, dozens of EV makers around the world cut prices, and several smaller companies warned they might not survive the price war.
5. April 3, 2025 · US 25% tariff on imported cars takes effect; auto parts tariff due May 3
   The Trump administration's 25% tariff on imported cars took effect, with a similar tariff on key auto parts set to follow in May, hitting every major car-exporting nation from Japan to Germany to South Korea at once. Carmakers faced an impossible choice between absorbing huge new costs or raising prices for American buyers, and suppliers worldwide feared a sharp drop in orders. In the days that followed, Stellantis paused production at plants in Canada and Mexico, and Jaguar Land Rover temporarily halted shipments to the US.

Assets named in this scenario · 15

BMWBridgestoneContinentalDensoFord Motor CompanyGeneral MotorsHonda MotorMercedes-Benz GroupPorsche AGRenaultStellantisStellantisTesla, Inc.Toyota MotorVolkswagen

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