BASF, Michelin Warnings Lay Bare Crippling Energy Woes
- Inflation, worsening outlook signal demand drop in US, Europe
- Energy costs soared in third quarter for Michelin, BASF
BASF SE’s chemical plant in Ludwigshafen, Germany.
Photographer: Thomas Lohnes/Getty Images
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European industrial leaders from French tiremaker Michelin to German chemical giant BASF SE are starting to crack under the weight of record energy and raw material prices, sending an ominous signal to the region’s broader economy.
Luxury-car maker Mercedes-Benz AG added to Michelin and BASF’s warnings on Wednesday about the outlook for Europe and the US, cutting its sales outlook for those regions as consumers face high inflation and rising interest rates.