FRANKFURT (Reuters) – The biggest threat to Volkswagenâ€™s 2019 profit is potential tariffs from the United States, Chief Executive Herbert Diess told the Financial Times.
â€śItâ€™s becoming tense once again,â€ť Diess told the FT. â€śYou know itâ€™s a pity because we canâ€™t solve it from the car industry [alone]. Itâ€™s more of a tariffs negotiation between Europe and the United States.â€ť
Analysts at London-based Evercore ISI said tariffs could cost Volkswagen 2.5 billion euros ($2.8 billion) a year, about 13 percent of expected earnings.
â€śIn the worst-case situation, that would probably be close to the real figure,â€ť Diess said of the Evercore projection.