Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

MarketPulse Europe: German Automakers Under Pressure Ahead of White House Meeting

Published 04/12/2018, 11:45
Updated 04/12/2018, 11:54
© Reuters.
CONG
-
MBGn
-
PSHG_p
-
BMWG
-
VOWG_p
-
SXAP
-

Investing.com - German automakers were some of the worst performers in European midday trade on Tuesday, as investors looked ahead to a meeting of top executives from Volkswagen , Daimler , and BMW, and senior Trump administration officials in Washington later in the day.

Daimler said Chief Executive Dieter Zetsche will attend the meeting, while BMW said Chief Financial Officer Nicolas Peter will be in attendance. Volkswagen CEO Herbert Diess is also planning to attend.

They are scheduled to meet with White House economic adviser Larry Kudlow, Commerce Secretary Wilbur Ross and U.S. Trade Representative Robert Lighthizer.

The automakers, previous targets of U.S. President Donald Trump's criticism, are hoping to head off tariffs on German cars, following fresh threats from Trump to slap more tax on vehicles assembled in the European Union.

The U.S. currently imposes import tariffs on cars assembled in the EU of 2.5%, compared with 10% tariffs for U.S.-built cars entering the European trading bloc.

Volkswagen (DE:VOWG_p), Daimler (DE:DAIGn), BMW (DE:BMWG) were all off by around 2% at 6:45AM ET (11:45 GMT) in Frankfurt, while Continental (DE:CONG) and Porsche (DE:PSHG_p) were down 4.2% and 2.5% respectively.

The losses weighed on the broader European auto sector index, which fell 1.8% in midday trade. Shares in Europe's auto sector have dropped almost 25% so far this year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.