The BMW brand logo can be seen on the BMW 4-Cylinder (also known as the BMW Tower or BMW Skyscraper), which is the main administrative building and landmark of the car manufacturer BMW.
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Shares in Europe’s biggest automakers fell on Wednesday on concerns that the European Union’s recent efforts to protect its domestic steel market could threaten the region’s auto sector.
The European Union’s executive arm, the European Commission, on Tuesday announced plans to increase steel tariffs and significantly reduce import quotas, aiming to provide “strong and durable protection” for the region’s steel industry.
The proposal includes limiting duty-free imports to 18.3 million tonnes per year and doubling tariffs on excess imports to 50%, reflecting a 47% reduction compared to the 2024 steel quota.
The planned measures have not been well received within the European car industry.
Europe’s Stoxx Automotive and Components Index ended Wednesday provisionally 2.1% lower, leading the region’s declines.
Following the EU’s announcement, industry lobbying group the European Automobile Manufacturers’ Association (ACEA) said the proposal went too far and threatened automakers with increased input and administrative costs.
Sigrid de Vries, executive director of ACEA, said European car manufacturers source around 90% of their direct steel purchases within the EU and were “most concerned about the inflationary impact that the continued effectiveness of safeguards would have on European market prices.”
He added: “While we do not dispute the need for a certain level of protection for primary industries such as steel, we feel that the conditions proposed by the European Commission go too far to lock in the European market.”
ACEA’s De Vries instead called for a “better balance” in the measure between the needs of European steel producers and users.
BMW stock plummets
Looking at individual stocks, Germany BMW It fell 8.3% on Wednesday, dropping to the bottom of the Stoxx 600 index.
The Munich-based automaker, which reportedly had its worst trading day since September last year, issued a new profit warning on Tuesday, citing slowing growth in China and the continued impact of U.S. import tariffs.
Rico Luhmann, senior sector economist for transport and logistics at Dutch bank ING, said BMW’s profit warning was “disappointing” and did not bode well for the many challenges facing European automakers.
“While they were still fairly optimistic about dealing with reality and maintaining margins during the second-quarter numbers, that relative optimism now appears to have faded,” Luhmann told CNBC via email.
Germany’s Mercedes-Benz Group volkswagen Both fell about 2%, but France renault Listed in Milan, down 1.8% Stellantis The stock ended the day down 1.2%.
On the other hand, stocks on the US side are ford down 0.7%, general motors Little changed in the session.
