'The party is over' as European carmakers face tariffs and a price war in China

By Christoph Steitz and Rachel More

MUNICH (Reuters) -Whisper it quietly, but beneath the buzz of shiny new car models and bright lights at Europe’s largest car show, the industry sector is worried that their party is over.

Prices and profits in key market China are in decline, demand is tepid in Europe and U.S. tariffs have created an uncertain outlook, putting the focus on cost-cutting as the global market is reshaped.

“The party we have been celebrating in the automotive industry for decades is over in its current form,” said Oliver Blume, CEO of both Volkswagen, Europe’s biggest carmaker, and its luxury division Porsche AG.

“Now it is about reorientation.”

The sector faces a reckoning, sharpened by pressure to shift towards EVs with tough 2035 targets in Europe that many feel they