Core Viewpoint - The Munich Auto Show highlights the significant impact of U.S. tariffs on the German automotive industry, creating a sense of unease among exhibitors despite the event's celebratory atmosphere [1][4]. Group 1: Impact of Tariffs - U.S. tariffs have caused substantial losses for the German automotive industry, with the president of the German Automotive Industry Association stating that European competitiveness is under immense pressure due to these tariffs [1][3]. - The tariffs disrupt established global supply networks, as highlighted by the Vice President of a major German auto parts supplier, who expressed dissatisfaction with the tariffs that undermine their operations [1][2]. - A recent survey indicated that over half of the German companies directly engaged in business with the U.S. plan to reduce trade, and a quarter will suspend or cancel investments in the U.S. due to the tariff burden [2][3]. Group 2: Financial Consequences - In April and May, following the implementation of new tariffs, German exports of new cars to the U.S. plummeted by 23.5% year-on-year, with major automakers like BMW and Volkswagen reporting profit declines of approximately 30% [3]. - Mercedes-Benz's net profit halved to 2.7 billion euros, with all three major automakers citing "significant additional costs" due to U.S. tariffs in their financial reports [3]. - The uncertainty surrounding future tariff policies is a major concern for the industry, as it complicates financial planning and operational strategies [3][4].

Core Viewpoint - The Munich Auto Show highlights the significant impact of U.S. tariffs on the German automotive industry, creating a sense of unease among exhibitors despite the event's celebratory atmosphere [1][4]. Group 1: Impact of Tariffs - U.S. tariffs have caused substantial losses for the German automotive industry, with the president of the German Automotive Industry Association stating that European competitiveness is under immense pressure [1]. - The tariffs disrupt established global supply networks, as highlighted by the Vice President of a major German auto parts supplier, who expressed dissatisfaction with the tariffs' impact on their operations [1][2]. - A recent survey indicated that over half of the German companies directly engaged in business with the U.S. plan to reduce trade, and a quarter will pause or cancel investments in the U.S. due to the tariffs [2]. Group 2: Financial Consequences - In April and May, following the implementation of new tariffs, German exports of new cars to the U.S. plummeted by 23.5% year-on-year, with major automakers like BMW and Volkswagen reporting profit declines of approximately 30% [3]. - Mercedes-Benz's net profit halved to €2.7 billion, with all three major automakers citing "significant additional costs" due to U.S. tariffs in their financial reports [3]. Group 3: Industry Sentiment and Future Uncertainty - The sentiment among German automotive suppliers is overwhelmingly negative, with many describing the tariffs as an unbearable burden that ultimately affects consumers through increased prices [2][3]. - Economic experts warn that high tariffs could lead to a more severe and hidden consequence: rising unit costs due to decreased production and inability to spread fixed costs, further eroding competitiveness [3]. - Uncertainty regarding future developments related to tariffs has become a common theme among exhibitors at the auto show, indicating a lack of clarity in the industry's outlook [3].