MILAN: (May 3) Even before US president Donald Trump announced a 25% tariff on all imported cars, European automakers had been facing a multitude of challenges. Sales have slumped and manufacturers face rising costs, while Chinese rivals have rapidly been gaining market share.
The day before the tariffs announcement, the combined market capitalisation of Europe’s five major automakers (Volkswagen, Stellantis, Mercedes-Benz, BMW, and Renault) stood at around US$212 billion (£159 billion). This total is less than a quarter of the value of Tesla alone.
Yet the five European giants sell 25 million vehicles annually, accounting for a third of all cars purchased worldwide. Tesla, despite losing half of its market value since the beginning of the year, only just makes the top 15 automakers. It sells less than a third of what Stellantis alone delivers. PTI
