German Auto Suppliers Pessimistic on Trade War Outlook

German automotive suppliers Continental and Bosch do not expect a speedy recovery of the global auto market, as an escalating trade conflict between the United States and China threatens to compound already weak car demand.

Automakers and their suppliers are grappling with a downturn in vehicle demand, particularly in China, the world’s largest car market, which saw sales slow down for the ninth month in a row in April.

Continental said on Thursday it was not expecting a market upturn until the second half of this year as it reported a 22 percent slump in first-quarter net profit, while Bosch said it expected sales to stagnate this year.

The outlook could darken further after U.S. President Donald Trump ratcheted up the stakes ahead of a visit by Chinese Vice Premier Liu He to Washington for two days of trade talks, saying China “broke the deal” and vowing not to back down on imposing new tariffs on Chinese imports.

via Reuters

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