Italy Looks to Alternative Export Markets for Automotive Components

CERNOBBIO, Italy (Reuters) – Italy is exploring Mexico and Vietnam as alternative export markets for its automotive components industry due to weakening demand from Germany amidst the Volkswagen crisis.

Italian Foreign Minister Antonio Tajani informed reporters on Friday during the TEHA business forum that the Italian auto part exports might be affected by the situation in Germany’s automotive sector.

Tajani stated, “We are aware of the situation Germany is facing in the automotive industry,” emphasizing that Italy is assessing markets to strengthen its presence, pointing specifically to Mexico and Vietnam.

Volkswagen, Europe’s largest car manufacturer by revenue and an emblem of Germany’s industrial strength, recently announced plans to prematurely terminate a job security program established in 1994, which may lead to plant closures in Germany.

Germany, being the largest market for Italy’s auto components industry, accounted for exports worth €5.2 billion ($5.8 billion) last year, as reported by the Italian automotive lobby group ANFIA. ($1 = 0.9006 euros)