Automakers focus on the global market, chide the US over tariffs at Shanghai’s auto show – Yahoo Finance
2025-04-25T02:05:00Z
Booths of big Chinese, German and Japanese automakers were bustling at Shanghai’s auto show this week as the industry kept its focus on a wider global market…
SHANGHAI (AP) — Booths of big Chinese, German and Japanese automakers were bustling at Shanghai’s auto show this week as the industry kept its focus on a wider global market not subject to steep U.S. tariffs on imports of cars and auto parts.
Signs are that U.S. President Donald Trump’s 25% tariffs on auto imports is causing companies to recalibrate their strategies, and in some cases find new opportunities.
“When governments up above are at odds, it’s going to impact the businesses down below,” said Ma Lihua, general manager at Soling, a Chinese maker of domain control units and other electronics used in such things as rearview camera displays.
Soling, headquartered in Shanghai, counts Ford Motor Co., Toyota Motor Corp. and many other top tier global and Chinese automakers among its customers. It’s also setting up a manufacturing base in Vietnam, whose local electric vehicle maker VinFast has ambitions to become Southeast Asia’s leading automaker.
Many of the dozens of auto parts and components companies exhibiting at the Shanghai auto show have operations spanning both the Chinese and world markets.
Metal components maker Gestamp, a supplier of chassis, battery boxes and other key auto parts, has suffered from a slowdown in the U.S. and western European markets but is expanding in Asia, Latin America and Eastern Europe.
The tariffs are now an added complication, as automakers watch to see what comes.
“In the past, supply chains usually would run like Swiss clockwork, but now it’s the opposite,” Ernesto Barcelo, chief ESG officer for Gestamp, said of the uncertainty now dominating the market.
“The lack of stability now, it’s something very … fluffy,” Barcelo said.
A fundamental criteria for investing in any market is political stability, Wei Jianjun, chairman of Great Wall Motor Co., told reporters when asked about his company’s plans to expand manufacturing overseas. That applies to countries like Hungary, where the company has not yet decided on whether to build a factory, he said, but also to the United States under Trump.
“If a country is not politically stable, it’s very risky,” said Wei, who also goes by the name Jack Wey.
With U.S. tariffs so high, Great Wall can focus elsewhere, such as on trade between China and Europe, which is bound to grow, he said. He didn’t address the tariffs of up 45.3% that the EU has imposed on electric vehicles made in China.
Tianshu Xin, CEO of Leapmotor International, a joint venture of Stellantis and China’s Leapmotor, said the U.S. market wasn’t its first focus.
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