Italy turns to Vietnam, Mexico for auto part exports to counter German weakness
8:04 am Friday, September 06th, 2024
CERNOBBIO, Italy (Reuters) – Italy is looking to Mexico and Vietnam as it seeks alternative export markets for its production of automotive components, in anticipation of weaker demand from Germany amid the Volkswagen crisis, an Italian minister said.
“We are aware of the situation Germany is facing in the automotive industry,” Foreign Minister Antonio Tajani on Friday told reporters on the sidelines of the TEHA business forum, adding Italian auto part exports could be impacted.
“That’s why we are studying to see which could be the markets where we could strengthen Italy’s presence,” he said, citing Mexico and Vietnam.
On Monday, Volkswagen – Europe’s top car maker by revenue and long a symbol of Germany’s industrial might – said it would prematurely end a job security programme in place since 1994 and set the stage for plant closures in Germany.
Germany is the largest market for Italy’s auto components industry, with exports worth 5.2 billion euros ($5.8 billion)last year, according to Italian automotive lobby group ANFIA. ($1 = 0.9006 euros)
(Reporting by Giancarlo Navach and Elvira Pollina; Editing by Alvise Armellini and Valentina Za)
