Economy Why don't Europeans buy more US cars?

[650lb Sumo]

Why don't Europeans buy more American cars?

Trump wants US vehicles to be more popular in Europe, but it's a difficult market for them to crack.

www.bbc.co.uk

Donald Trump is threatening to introduce big tariffs on EU car imports, unhappy that Europeans don't buy more American vehicles. But why are US cars, with the notable exception of Tesla, not more popular in Europe?

Italy's ancient towns and cities, with their narrow, cobbled streets, offer an obvious explanation why, in the words of US President Donald Trump, Europeans "don't take our cars".

Or as car industry analyst Hampus Engellau puts it: "Try to go around Italy in a big SUV. I've done it, and it's very difficult".

Engellau

Add cost to the question, and it becomes obviously why you don't see too many American pick-up trucks on European roads, observes Mike Hawes, CEO of The Society of Motor Manufacturers & Traders, which represents the industry in the UK.

Hawes

"We tend to have higher fuel prices than the Americans, so we prefer smaller, more fuel-efficient vehicles, while they generally prefer larger vehicles."

Mr Engellau, who works for Swedish investment bank Handelsbanken Capital Markets, also highlights petrol prices being substantially cheaper in the US. "They pay per gallon what we pay per litre," he says. There are 3.8 litres to one US gallon.

Yet these differences have done little to deter European carmakers from gaining market share in the US. Again, in the words of Mr Trump, the US has 'millions of cars coming in - BMW, Mercedes, Volkswagen and many others'.

In 2022, 692,334 new EU-made cars were exported to the US, worth €36bn ($37bn; £30bn). While only 116,207 new US-made cars went in the opposite direction, for €5.2bn.

This imbalance is caused by unfair trading rules and needs correcting, according to Mr Trump.

Trump

"Mr Trump is concerned because the terms of trade are not really equal," explains Mr Engellau, pointing out that the EU's 10% tariffs on cars imported from the US far exceeds the 2.5% tariffs the US – currently - charges on cars imported from the EU.

These disparities have prompted Trump to say he wants to raise US tariffs on European automotive imports. He has already announced 25% import tariffs on steel and aluminium imports, two metals crucial for carmakers.

Trump's move appears to have prompted EU officials to consider reducing their own tariffs in order to protect Europe's automotive industry from a potential trade war.

Elon Musk's Tesla has a factory near Berlin in Germany, where it makes its Model Y cars for the European market, but even here there are headwinds as low-cost Chinese imports in particular see their share of Europe's market for electric cars grow.

 

[fedorthegoat777]

Gas is expensive in Europe, you buy it by the liter and put it in small tanks. In America, you get it by the gallon in large tanks.

They don't need our big gas guzzling cars. This is why only the Teslas sell well over there.

 

[CantCucktheTuck]

soy

 

[GhostZ06]

have you seen european roads? lol they old and shitty an not all that modernized

 

[NoSmilez]

Honestly American cars kinda suck outside of SUV and trucks. Big cars aren't popular worldwide. Petro is also expensive outside of America.

 

[lsa]

Honestly American cars kinda suck outside of SUV and trucks. Big cars aren't popular worldwide. Petro is also expensive outside of America.

Then you have the prices for them.
You get a lot more bang for your money if you buy anything else.
There is no real upside to buy American in Europe.

 

[lifelessheap]

Not trying to be gay, but everyone stole my Ford Ranger while working construction in San Francisco because it was small enough to park. All my bros 150s, 250's or Rams or whatever....

They stole my Ranger . because parking.

 

[Broke Lester]

Cause American cars are shit boxes.

 

[Fox by the Sea]

have you seen european roads? lol they old and shitty an not all that modernized

Somebody never went to Europe.

 

[F1980]

I'll be the one to say it. Europeans drive the gayest looking cars. Effeminate cars for effeminate people.

 

[GhostZ06]

Cause American cars are shit boxes.

BMW, alfa , Fiat, French crap, Mercedes, Maserati are ALL insanely unreliable and have insane depreciation

 

[Broke Lester]

BMW, alfa , Fiat, French crap, Mercedes, Maserati are ALL insanely unreliable and have insane depreciation

Agreed, VW's, Honda and Toyota are what I like.

 

[Hellowhosthat]

American cars have never been popular in Europe apart from Ford and it has nothing to do with unfair trading practices. Euros just don't want them.

 

[Hellowhosthat]

Gas is expensive in Europe, you buy it by the liter and put it in small tanks. In America, you get it by the gallon in large tanks.

They don't need our big gas guzzling cars. This is why only the Teslas sell well over there.

I think it's more that we have more corners. I did test drive a Chevrolet before I bought my current car and thought it was a pretty nice vehicle until I started going round some country road corners in it and it handled like shit. A lot of Euro and Japanese cars you can throw into corners much better, which is important here. I don't think it matters so much in the US because most of your roads seem pretty straight.

 

[pugilistico]

American cars are way too big for some of the roads and parking spots in other countries. Even so, I see more and more giant American SUVs and trucks in countries in Asia, where there's barely any space to navigate in the alleys or parking lots. But still people drive them and make their lives harder for themselves.

 

[NoSmilez]

Then you have the prices for them.
You get a lot more bang for your money if you buy anything else.
There is no real upside to buy American in Europe.

I don’t even think most people in America buy American if it’s not a big suv or truck. I am assuming most compact suvs sold here are Honda or Toyota.

 

[Fox by the Sea]

I'll be the one to say it. Europeans drive the gayest looking cars. Effeminate cars for effeminate people.

Wait till you find out where your grandfathers came from.

 

[Mittens]

I have a V8 'Stang, but it's the stupidest thing I have ever purchased on a pretty long list of stupid purchases. More unused gas leaks out of its tailpipe than my Nissan SUV drinks on 100km... would not have it any other way, of course. But this anecdotal evidence of: high as fuck gas prices often make American Cars an uninformed purchase choice.

No, wait, three prostitutes at the same time was the stupidest. Had no real idea what to do with the third around most of the time.

 

[Cajun]

I think the tariff adjustment is fair and as European sherbros point out they don't sell well over there. But at 10% it doesn't help. I think this is a fair point by Trump.

 

[Hog-train]

Because American cars suck. Pretty simple. You can't threaten your way into car popularity.

I mean Japanese and Korean automakers are doing well in Europe.

Americans themselves don't like the American shitboxes.