Germany’s top three carmakers are set to have more than €10bn wiped off from their cash flows this year as US tariff costs add pressure to an industry already battling sluggish volumes and an influx of Chinese electric vehicles.
The car industry has been one of the hardest hit by Donald Trump’s trade war after the US president imposed 25 per cent tariffs on imports of foreign-made vehicles.
Analysts expect carmakers’ cash flows generated from their automotive business to be squeezed. They are likely to fall from €9.4bn last year to €3bn at Mercedes-Benz; from €7.1bn to €3.3bn at Volkswagen; and €4.8bn to €4.4bn for BMW, according to data from Visible Alpha.