Core Viewpoint - German exporters are expected to face continued weakness in their two largest markets, the United States and China, with little prospect for recovery in 2026 [1] Group 1: Export Projections - Exports to the U.S. are projected to decline by more than 7% to just under 150 billion euros ($156 billion) in 2025 [2] - Exports to China are expected to contract by 10% to 81 billion euros [2] Group 2: Trade Barriers and Structural Challenges - U.S. tariffs on EU goods have created a significant burden on margins for German exporters, acting as "sand in the gears of transatlantic trade" [3] - Germany faces structural challenges such as a strong euro, high energy costs, excessive bureaucracy, and weak investment [3] Group 3: Impact of China's Industrial Policies - China's industrial policies favoring domestic producers have reduced demand for German goods, particularly in the automotive, mechanical engineering, and chemicals sectors [4] - German companies are increasingly localizing production within China or shifting investments to other Asian markets, which stabilizes global sales but results in fewer exports from Germany [4]

Core Viewpoint - Volvo Cars is expanding production at its US plant in Ridgeville, South Carolina, to localize production, mitigate tariffs, and cater to the US market's specific demands [1][5][6] Group 1: Production Expansion - Volvo will introduce a fourth vehicle model at its Ridgeville plant, which is expected to be a next-generation hybrid designed for the US market [1][2] - The company plans to start producing its bestselling XC60 midsize SUV at the South Carolina facility by late 2026, currently manufactured in Gothenburg, Sweden [2][3] - The Ridgeville plant has an installed production capacity of 150,000 cars per year and currently produces the fully electric Volvo EX90 SUV and Polestar 3 [3] Group 2: Financial Commitment - Volvo's total investment in its US plant amounts to $1.3 billion, reinforcing its long-term commitment to the US market [4] - The XC60 has seen significant sales growth, with over 27,000 units sold in the US in the first eight months of 2025, marking a nearly 20% increase year over year [3] Group 3: Tariff Impact - The expansion of US manufacturing is largely driven by the imposition of tariffs on global imports, with cars imported from Sweden and the EU facing a potential 15% tariff [5][7] - Current tariffs on vehicles imported from China are at 100%, prompting Volvo to relocate production of its EX30 from China to Ghent [7]