Another European car company gets knocked out by tariffs

Core Insights - U.S. tariffs have significantly impacted the German auto industry, leading to declining profits across major brands [1][2] German Auto Industry Exports - The European Union has reduced its tariff burden from 25% to 15%, but this still adversely affects automakers' profits [2] - Volkswagen estimates that U.S. tariffs will cost the company up to 5 billion euros ($5.8 billion) this year, with tariffs reducing its year-over-year profit by 58% [2] Volkswagen Performance - Volkswagen has decreased vehicle shipments to the U.S. to mitigate tariff impacts, resulting in an 11% decline in North American sales through the first three quarters [3] Mercedes-Benz Performance - Mercedes-Benz reported a 70% year-over-year decline in EBIT to 750 million euros ($870 million), with overall revenue falling 7% to 32 billion euros ($37.13 billion) [4] - The company's third-quarter net profit dropped to 1.19 billion euros, down from 1.72 billion euros a year ago ($1.38 billion from $1.99 billion) [5] - Despite the tariff impact, Mercedes-Benz experienced a 10% growth in unit sales in its "top-end" category and maintained its full-year guidance [6][7] Audi Performance - Audi Group described its financial performance as reflective of the challenging economic situation faced by all German automakers [8]