The auto industry’s ‘annus horribilis’: Trump’s tariffs, Chinese rivals and EV slowdown drag the sector into heavy losses
The global automotive industry faced significant challenges in 2025, including steep profit declines and multibillion-dollar losses, due to factors such as Trump's tariffs, Chinese competition, and an electric vehicle sales slowdown. European automakers, except for BMW, were particularly affected, with companies like Ford and Stellantis reporting substantial losses.
The global automotive industry experienced a disastrous 2025, marked by significant financial losses and declining profits. European automakers were hit hard, with the exception of BMW, due to factors such as Trump's tariffs and increased competition from Chinese manufacturers. The slowdown in electric vehicle sales also contributed to the industry's woes, with companies like Ford and Stellantis reporting losses of $8.2 billion and $26.3 billion, respectively. General Motors managed to stay profitable but saw its earnings plunge 55%. The industry's shift towards electrification is being hindered by rising international competition and geopolitical uncertainty. European automakers are revising their electrification plans, with some citing a mismatch between industry expectations and market growth.
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