The BMW brand logo can be seen on the BMW four-cylinder (also known as the BMW tower and BMW high-rise), the main administration building and landmark of the vehicle manufacturer BMW.
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Shares of Europe’s biggest carmakers traded lower Wednesday, amid concern that the European Union’s latest efforts to protect the domestic steel market could threaten the region’s auto sector.
The European Commission, the EU’s executive arm, announced Tuesday that it plans to hike steel tariffs and sharply cut import quotas, seeking to offer “strong and permanent protection” to the region’s steel industry.
The proposal includes a push to limit tariff-free import volumes to 18.3 million tons a year, reflecting a reduction of 47% compared with 2024 steel quotas — and doubling tariffs to 50% on any excess imports.
The planned measures have not gone down well within Europe’s automotive industry.
Europe’s Stoxx Automobiles and Parts index provisionally ended Wednesday’s session 2.1% lower, leading regional losses.
Steel industry in UK warns of ‘biggest crisis’ ever as EU hikes tariffs
In response to the EU’s announcement, the European Automobile Manufacturers’ Association, or ACEA, an industry lobby group, said the proposal goes too far and threatens automakers with higher input and administrative costs.
Sigrid de Vries, director general of ACEA, said that European carmakers source roughly 90% of their direct steel purchases in the EU and were “most concerned about the inflationary impact that an effective continuation of the safeguard will have on European market prices.”
She added: “We do not contest the need for some level of protection for a commodity industry like steel but we feel that the parameters as proposed by the Commission go too far in ring-fencing the European market.”
ACEA’s de Vries called instead for “a better balance” between the needs of European producers and users of steel in this measure.
BMW shares fall sharply
Looking at individual stocks, Germany’s BMW fell 8.3% on Wednesday, slipping toward the bottom of the Stoxx 600 index.
The Munich-based carmaker, which is reportedly on track for its worst trading day since September last year, issued a fresh profit warning on Tuesday, citing slow growth in China and the ongoing impact of U.S. import tariffs.
Rico Luman, senior sector economist for transport and logistics at Dutch bank ING, described BMW’s profit warning as “disappointing” and not a positive signal regarding the many challenges facing Europe’s automakers.
“During the 2Q figures presentation they where still rather upbeat about dealing with the reality and holding up margins, but that relative optimism seems to have faded now,” Luman told CNBC by email.
Germany’s Mercedes-Benz Group and Volkswagen were both down around 2%, France’s Renault fell 1.8% and Milan-listed Stellantis provisionally ended off by 1.2%.
Stateside, meanwhile, shares of Ford fell 0.7%, with General Motors little changed for the session.