Carmakers across Europe saw over £6 billion wiped off their market value on Wednesday as fears grew that they will be forced to pay more for steel. The European Commission has proposed a 50% duty on steel imports above a certain quota, in a bid to protect EU steel producers.
However, the European Automobile Manufacturers’ Association (ACEA) warned that the plans could burden carmakers with higher costs. Sigrid de Vries, the ACEA’s director general, said: “We do not contest the need for some level of protection for a commodity industry like steel but we feel that the parameters as proposed by the Commission go too far in ring-fencing the European market.”
Shares in all the major European listed carmakers fell, with BMW’s 8.5% drop also affected by a profit warning. The German carmaker noted continued weakness in China as trade tensions cloud its prospects.
The stock market falls came as European carmakers stepped up their calls for the EU to relax its 2035 ban on combustion-engine sales by allowing cars that run on alternative fuels. The ACEA said Brussels’ current emission-reduction targets were “based on outdated premises and optimistic assumptions”, and “no longer realistic to achieve”.
The Commission last month promised to fast-track a review of its plans to end combustion-engine vehicle sales, following pressure from the embattled auto sector. A proposal is expected for December.
