Continental Sees Car-Industry Currency Turmoil on Trump Election
- CFO predicts peso, yen shifts on U.S. trade-policy questions
- Company sees ‘strong’ fourth quarter after third-quarter drop
The Trump Challenges Heading Towards the Auto Industry
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Continental AG expects currency turmoil as Donald Trump’s election to the U.S. presidency adds to cost pressure on the auto industry that contributed to a third-quarter earnings plunge at Europe’s second-biggest maker of car parts.
“The whole industry uses Mexico as an export country to the U.S., so exchange-rate changes with the Mexican peso will have an impact,” Chief Financial Officer Wolfgang Schaefer said Thursday in a phone interview. “The Japanese yen has also shown a relatively strong reaction.”