Elementary, My Dear Automakers: Trump's Tariffs Drive European Giants to the Brink!

The Game is Afoot: Profit Plummets and Guidance Gone!

The fog has settled not just on Baker Street but across the English Channel. European automotive giants once paragons of engineering and profit now find themselves in a most peculiar predicament. It seems the long arm of American tariffs wielded by a certain Mr. Trump has reached across the Atlantic leaving a trail of red ink and revised forecasts in its wake. As I always say 'It has long been an axiom of mine that the little things are infinitely the most important.' And these tariffs though seemingly small to some are proving to be quite the sticky wicket.

Stellantis Stumbles: Uncertainties and Tariff Troubles

Stellantis a name that sounds suspiciously like a distant constellation has withdrawn its full year financial guidance with the speed of a fleeing pickpocket. Uncertainties they say are to blame. But we dear Watson know better. It's the tariffs plain and simple. The firm is 'highly engaged' with policymakers a euphemism if I ever heard one. They are no doubt desperately trying to unscramble this economic omelet. As I've often observed 'You see but you do not observe.' These policymakers are observing the problem but are they truly seeing it?

Mercedes' Meltdown: Earnings Evaporate Like Morning Mist

Even the mighty Mercedes a titan of German engineering has scrapped its 2025 earnings guidance. The words 'necessary level of certainty' are bandied about a phrase that chills the blood of any investor. Volatility they cry! Tariffs they whisper! It seems even the most sophisticated algorithms cannot predict the whims of a trade war. 'Data! Data! Data!' I can hear them cry. 'I can’t make bricks without clay!'

Volkswagen Ventures Forth: A Cautious Crawl

Volkswagen the people's car remains steadfast but even they admit to a tremor in their chassis. They anticipate operating return on sales net cash flow and net liquidity to be at the bottom end of their annual forecasts. Increasing trade restrictions political uncertainty and those pesky emissions regulations are all to blame. It appears the road ahead is paved with more than just asphalt. One might say 'The world is full of obvious things which nobody by any chance ever observes.'

Volvo's Woes: Cost Cutting and Krona Concerns

Volvo Cars owned by those astute Chinese chaps at Geely Holding is feeling the pinch more acutely. They are after all heavily reliant on imports from Europe. Financial guidance has been ditched and cost cutting plans amounting to a staggering 18 billion Swedish kronor are underway. Layoffs loom like a shadow on the horizon. The CEO speaking before the easing of tariffs lamented the difficulty of providing guidance stating 'This is of course going to be very difficult for the business in the U.S.' Indeed a most elementary deduction.

Porsche's Pruning: A Trimmed Forecast and Tariff Troubles

Even Porsche synonymous with luxury and performance has had to trim its sales and profit margin forecasts. The dreaded tariffs are once again the culprit. They foresee negative impacts for April and May but admit that a reliable assessment for the entire financial year is as yet impossible. It seems even the finest minds in Stuttgart cannot outwit the vagaries of international trade. As I have always said 'There is nothing more deceptive than an obvious fact.'