China trade tensions cast shadow on automakers' investment plans, TomTom CEO says
11/10/2024 11:42
By Mathias de Rozario
Oct 11 (Reuters) - Trade tensions between China and the
West have put a dampener on carmakers' investment decisions and
longer-term outlooks, creating a level of uncertainty in the
industry, the CEO of digital mapping specialist TomTom said on
Friday.
The European Union is pressing ahead with hefty tariffs on
China-made electric vehicles, set to be imposed from next month,
while the Biden administration in September locked in steep
tariff hikes on Chinese imports, including a 100% duty on EVs.
"I think some of our biggest customers are struggling to
find their foot and decide on the longer-term planning in this
volatile environment," TomTom CEO Harold Goddijn told Reuters.
TomTom, a location data pioneer that counts Stellantis
STLAM.MI , Renault RENA.PA and Volkswagen VOWG_p.DE among
its clients, develops high-definition self-driving maps that
integrate consumer data and advanced driver assistance systems.
"We have a good position in China as well for export
products, but it's difficult to see how this will impact the
overall picture," Goddijn said.
He added TomTom expected the U.S. to be effectively closed,
more or less, for imports of Chinese vehicles, while the effect
on the European markets was still unclear.
TomTom on Friday reported third-quarter revenue below market
expectations largely due to declining demand for new cars.
Goddijn said the weak car sales was a "short-term blip" from
which the market would recover, though the auto industry
backdrop was more volatile than he had seen in a long time.
He added that 2025 would be an important year for the Dutch
firm, as many automakers were expected to make decisions about
their new platforms and procurement of new technologies for 2026
and 2027.
(Reporting by Mathias de Rozario in Gdansk; editing by Milla
Nissi)
((mathias.derozario@thomsonreuters.com))