Germany's once-dominant automotive sector is facing its most profound reckoning in decades, shedding over 52,000 jobs — a 6.7% decline — in the past year alone, according to fresh data released by Destatis. Since the onset of the Covid-19 pandemic in 2019, the broader industrial sector has cut a total of 245,000 positions, with nearly half of those losses concentrated in the auto industry, according to estimates by the auditing and consulting firm EY.
Hon Hai Precision Industry, better known as Foxconn, is signaling a strategic shift toward electric vehicles through partnership rather than acquisition. Chairman Young Liu confirmed that the company is exploring collaboration with Japanese automakers like Nissan via its Contract Design and Manufacturing Service (CDMS) model. While Foxconn has held discussions with Renault—the largest shareholder in Nissan—its aim is firmly anchored in cooperation, not ownership.
The European Union (EU) is seeking to reduce tariffs on vehicles exported to the US, aiming to lower the rate to 15%. However, to secure that concession, Brussels must meet two key conditions set by Washington: dismantle trade barriers on American goods, and agree to a mutual recognition of automotive regulatory standards.
Mexican President Claudia Sheinbaum is preparing to raise tariffs on a wide range of Chinese imports in her 2026 federal budget proposal, a move aimed at shielding domestic industries from low-cost competition and aligning more closely with the US's strategic trade agenda, according to people familiar with the matter.
Hesai Group, the world's top LiDAR maker, has filed with China's securities regulator to pursue a secondary listing in Hong Kong. The move comes months after rival RoboSense Technology's Hong Kong debut in January 2024, setting the stage for another major LiDAR player to tap Asian capital markets.
Auto sales in Taiwan have sharply declined in recent months, as consumers sit on the sidelines, anticipating a potential breakthrough in trade talks with the United States that could eliminate tariffs and excise taxes on imported vehicles. Industry insiders point to widespread buyer hesitation, driven by expectations that Washington may secure tariff-free access for American-made cars, pressuring Taiwan to reciprocate with lower duties.
The traditional five-year auto loan is no longer the norm in the US. Driven by rising vehicle prices—fueled in part by tariffs on cars and auto parts—limited vehicle availability, and inflation reshaping consumer behavior, longer-term financing has become increasingly common. Six-year loans now dominate the market, while the share of seven-year loans is climbing at a record pace.
The implementation of US tariffs on automobiles and auto parts has already delivered a significant blow to global carmakers. Despite Washington's reassurances to allies like the UK, the European Union, and Japan that tariffs will be eased, a new and potentially disruptive regulatory shift is quietly taking shape. The potential reactivation of Section 232—an obscure but powerful trade mechanism—could soon send fresh shockwaves through an already fragile global automotive supply chain.
