The BMW brand logo can be seen on the BMW four-cylinder engine (also known as BMW tower and BMW skyscraper), the main administrative building and symbol of the vehicle manufacturer BMW.
Image Alliance | Image Alliance | fake images
Shares in Europe’s biggest carmakers traded lower on Wednesday amid concerns that the European Union’s latest efforts to protect the internal steel market could threaten the region’s auto sector.
The European Commission, the EU’s executive arm, announced Tuesday that it plans to raise steel tariffs and sharply reduce import quotas, seeking to offer “strong and permanent protection” to the region’s steel industry.
The proposal includes a push to limit tariff-free import volumes to 18.3 million tonnes a year, reflecting a 47% reduction compared to 2024 steel quotas, and doubling tariffs to 50% on any excess imports.
The planned measures have not been well received in the European automobile industry.
The European Stoxx Automobiles and Parts index traded 2% lower around 3:40 pm London time (10:40 am ET) on Wednesday, leading regional losses.
In response to the EU announcement, the European Automobile Manufacturers Association, or ACEA, an industry lobby group, said the proposal goes too far and threatens automakers with higher administrative and input costs.
Sigrid de Vries, director general of ACEA, said European carmakers source about 90% of their direct steel purchases from the EU and were “very concerned about the inflationary impact that an effective continuation of the safeguard will have on European market prices.”
He added: “We do not question the need for some level of protection for a commodity industry such as steel, but we believe that the parameters proposed by the Commission go too far in protecting the European market.”
ACEA’s De Vries instead called for “a better balance” between the needs of European steel producers and users with this measure.
BMW shares fall sharply
If we look at individual actions, Germany’s bmw fell about 8% on Wednesday, sliding to the bottom of the Stoxx 600 index.
The Munich-based automaker, which is reportedly on track for its worst trading day since September last year, issued a new profit warning on Tuesday, citing slow growth in China and the ongoing impact of tariffs on U.S. imports.
Rico Luman, senior economist for the transport and logistics sector at Dutch bank ING, described BMW’s profit warning as “disappointing” and not a positive sign regarding the many challenges facing European automakers.
“During the presentation of the second quarter numbers, they were still quite optimistic about facing reality and maintaining margins, but that relative optimism seems to have faded now,” Luman told CNBC by email.
The German group Mercedes-Benz, porsche and volkswagen all were down about 2%.
France’s actions renault and listed in Milan stellantis were last seen 2% lower and 1.2% lower, respectively.
Meanwhile, in the United States, the shares of Ford and general motors Both were trading slightly lower.
