UBS: Middle East conflict drags down European auto stocks; luxury car profits under greater pressure
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Glonghui, March 30th|UBS analysts stated that since the outbreak of the Middle East conflict, the European automotive sector has declined by 10%-15%, as the market is concerned about rising prices of natural gas and electricity, aluminum, and resin, which together will increase the cost of each car by about 1,000 euros. In addition, the market is also worried about supply chain stability and the potential impact of a weakening economy on demand, especially sales in the Middle East. For high-end/luxury car manufacturers, this region represents only 2% of global sales, but high-end models (such as Maybach and Rolls-Royce) have the highest share, so the impact on profits is significantly greater.
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