The Trump Challenges Heading Towards the Auto Industry
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. Trump attacked Ford Motor Co.’s Mexican production strategy during his election campaign, while Toyota Motor Corp., Nissan Motor Co., Volkswagen AG and General Motors Co. also build cars in the country that may be subject to U.S. tariffs under his trade policy. Schaefer discusses with Francine Lacqua on "Bloomberg Surveillance."