Ellinghorst: Trade Disruption Is Bad for Auto Industry

The video discusses the impact of protectionism on the auto industry, highlighting the importance of the US market for both Asian and European automakers. It compares the strengths of companies like Toyota and BMW and explores decision-making factors for manufacturing locations, such as labor costs and supply chain efficiency. The video also examines how automakers handle currency fluctuations and the challenges of promoting environmentally friendly cars. Finally, it identifies investment opportunities in the automotive sector, focusing on companies like Volkswagen and Vallejo.

How does Trump protectionism potentially affect the automobile industry?

• It has no impact on the auto industry.

• It only affects Asian automakers.

• It disrupts global trade, negatively affecting the auto industry.

• It boosts the auto industry by increasing local sales.

Which automaker is noted for being the strongest in terms of profitability and cash generation?

• Volkswagen

• Toyota

• Hyundai

• Ford

What is a key factor in deciding the location for a new manufacturing plant?

• Proximity to tourist attractions

• Climate conditions

• Availability of luxury hotels

• Labor costs and supply chain efficiency

How do automakers like Toyota manage currency fluctuations?

• By only manufacturing in their home country

• By hedging currency and having a global manufacturing base

• By avoiding international markets

• By setting fixed exchange rates

Which company is considered the biggest turnaround story in global autos?

• Ford

• Volkswagen

• Tesla

• Nissan