Volkswagen AG and Stellantis led the biggest intraday decline in European auto stocks since April amid new US tariffs. The new tariffs threaten to cut sales of cars made at their plants in Mexico. About this informs Bloomberg.
Shares in Volkswagen, which shipped more than 500,000 vehicles from Mexico to the U.S. last year, fell 6.7 percent, while Stellantis, Europe’s second-largest automaker, lost 7 percent.
The new 25% tariff imposed by the Trump administration is set to take effect on February 4. They can significantly affect multi-year supply chains. This is especially true for automakers that use production facilities in Mexico to supply products to the American market.
German companies producing auto parts have more than 330 plants in Mexico, and in total, Mexican auto plants produced 716,000 passenger cars in 2023. The fall also affected BMW AG and Mercedes-Benz Group, whose shares fell 6.5% and 5.3%, respectively.
According to the Mexican Statistics Agency, in 2023, Volkswagen exported 526,535 vehicles produced in Mexico to the United States.
