producers,” said European Commission spokesperson Miriam Garcia Ferrer. “We think it’s discriminatory, that it is discriminating against foreign producers in relation to U.S. Reuters reports that the European Union thinks the tax credit proposal may breach World Trade Organization rules. origin of battery components? Well, a growing number of critics are unsurprisingly opposed to that protectionist measure. Remember that recent Senate deal about tax credits for electric cars? The one with stipulations for U.S. EV Credit Proposal May Violate Trade Rules Photo credit: Mercedes-Benz
Keep a close eye on the cost of quality car parts over the next few months, I have a feeling we’ll see some increases. Suppliers will need to find revenue somehow, and hiking the prices of replacement parts is one avenue they could pursue. Not only would an increase in OEM parts prices drive up the cost of new cars, vehicle owners like you and I could soon be paying more money for OE replacement parts. On a negative note, rough conditions for suppliers could have rippling effects throughout the automotive world. Imagine actually seeing new Volkswagen GTIs and Golf Rs stay on dealer lots long enough to test drive. On a positive note, a lull in Europe could give European automakers the opportunity to build up inventory in undersupplied markets. Well, there are two ways of looking at this situation. While Continental confirmed its outlook for the year on Tuesday, the German parts maker said it has to shoulder some €3.5 billion ($3.6 billion) in additional costs for raw materials, energy and logistics, with prices for overseas shipping containers jumping eightfold in some cases.Ĭontinental CFO Katja Duerrfeld described conditions as “rather like a hurricane” and predicted these pressures “will not subside any time soon.” That follows warnings from BMW last week that new-vehicle orders are retreating from high levels, particularly in Europe. Bloomberg reports that increased costs and decreased customer demand is creating choppy waters in Europe.Ĭustomers are debating whether to buy a vehicle or push the leasing contract ahead a month over concerns including surging energy prices, Frank Fiedler, the chief financial officer of VW Financial Services, said on Monday. Things Are Looking Bad For European Automakers And Parts Suppliers Photo credit: Continental AGīetween inflation and an energy crisis, now seems to be a particularly rough time for European automakers and suppliers. If your morning coffee’s working a little too well, pull up a throne and have a gander at the best of the rest of yesterday. Welcome to The Morning Dump, bite-sized stories corralled into a single article for your morning perusal. All this and more in today’s issue of The Morning Dump.
Inflation and a European energy crisis could make car parts more expensive, the EU isn’t happy about the Senate’s EV credit proposal, Mercedes-Benz reportedly kills the Metris.
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