Achtung! Germany’s Mercedes, Porsche stung by Trump’s auto tariffs
German luxury Stalwarts Mercedes-Benz (MBGAF) and Porsche (P911.de) are usually relying on the US for a large part of their sales-about 25% for each car manufacturer. But those days can end, at least for now.
At the beginning of this week, Mercedes reported The second quarter global automobile sales fell by 9% to 453,700 units and US sales fell 12% compared to a year ago.
“Delivery to dealers, new global tariff policies, was carefully calibrated to navigate in new global tariff policies and affected the sales of Mercedes-Benz cars in the United States and China,” Mercedes said. He said. The Trump administration implemented 25% automatic sector tariffs for all imports that started in early April.
Interestingly, sales in Germany and Europe rose to 7%and 1%, respectively with the “rest of the world”, which includes regions such as the Middle East, Africa and South America.
The company’s Crosstown Stuttgart rival Porsche reported sliding sales where global delivery fell to 6%.
Porsche said that US sales increased by 10% in the quarter, but there was a huge warning: “The increase is due to higher product usability in the market and the price protection offered in the first half of the year due to the increase in import tariffs.” He said.
Essentially, Porsche confesses that he trusts his inventory before the tariff to increase sales, and then puts his customers in the profit margins, at least by maintaining the price.
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Porsche is unique disturbing, as it is produced in Germany and EU countries such as Slovenia. Mercedes’s exposure is not acute, because the car manufacturer Tuscaloosa has a large factory in Ala, where the car manufacturer makes SUVs and some houses.
As for Porsche, the company CEO Oliver Blume (also the CEO of Volkswagen Group), said Porsche would probably transfer tariff costs to its customers, but when she didn’t say it. Porsche did not respond immediately when it was reached for a comment on US pricing.
As for Mercedes, a spokesman told Yahoo Finance, “We accept the importance of consistency and transparency for our customers and dealer partners and we are determined to protect the current My25 [model year 2025] Pricing until the next notification. Currently, any customer who ordered a MY25 Mercedes-Benz can be sure that this price will not change. “
“We continue to monitor the situation closely, we evaluate all options, and when necessary, we will set up for changing market conditions and competitive landscapes.”
