March 14, 2025 at 05:43PM
The EU has not really been in the crosshairs with regard to any specifics on tariffs… yet. EU Trade Chief Sefcovic is saying:
He had an important exchange with US Commerce Secretary Lutnick
There is a lot of work ahead.
We do know is that Trump is irked by the tariffs on US autos in the EU, and will likely encourage them to be eased.
Ford manufacture vehicles in the European Union, maintaining key production facilities in Cologne, Germany; Valencia, Spain; and Craiova, Romania. The Cologne plant, established in 1931, produces models like the Ford Explorer EV, while the Valencia plant, operational since 1976, manufactures the Ford Kuga. In Craiova, acquired in 2008, Ford builds the Puma and Transit Courier/Tourneo Courier models, along with the 1.0 L I3 EcoBoost engine.
Despite its presence in Europe, Ford is facing significant challenges. The Cologne plant is set to close as part of a broader restructuring effort, resulting in approximately 4,000 job cuts, including 2,900 in Germany. In Valencia, the Almussafes plant is expected to see a 45% decline in production by the end of the year, as it primarily manufactures the Kuga model. The plant has implemented temporary employment regulations and plans to operate with a reduced workforce until 2027, when new hybrid model production is scheduled to begin.
Meanwhile, General Motors (GM) no longer manufactures vehicles in Europe. In 2017, GM sold its European subsidiary, which included Opel and Vauxhall, to PSA Peugeot-Citroën (now part of Stellantis), marking the company’s exit from European vehicle manufacturing. Today, GM’s European presence is limited to specific services, such as Cadillac Europe, which distributes Cadillac vehicles and select Chevrolet sports cars.
Meanwhile, several European car manufacturers have established manufacturing facilities in the United States, producing a range of vehicles for both domestic and international markets. These facilities allow companies to cater to American consumers while also contributing to local economies.
BMW has a major presence in the U.S. with its Spartanburg, South Carolina plant, which has been operational since 1994. It is the company’s largest global production facility, manufacturing models such as the X3, X4, X5, X6, X7, and the XM crossover SUVs. This plant plays a critical role in BMW’s production network, with approximately two-thirds of BMW’s U.S. sales coming from this facility.
Volkswagen operates its Chattanooga, Tennessee assembly plant, which opened in 2011. Initially, the plant produced the U.S.-spec Passat, and since 2017, it has been responsible for manufacturing the Atlas SUV. This facility reflects Volkswagen’s strong commitment to the U.S. market, serving as a production hub for vehicles specifically designed for American consumers.
Volvo established its Ridgeville, South Carolina plant in 2018, marking its first manufacturing facility in the U.S. The plant produces the S60 sedan, which is distributed both domestically and internationally. This move signifies Volvo’s long-term strategy to expand its footprint in the U.S. automotive industry.
These manufacturing facilities demonstrate how European automakers are integrating into the U.S. industrial landscape, strengthening their presence, and producing vehicles that align with American market demands.
This article was written by Greg Michalowski at www.forexlive.com.
