The car industry faces the threat of creeping protectionism at a time when global supply chains are more globally integrated than ever before, the head of Mercedes-Benz has warned.
“Politically, there have been trends towards more protectionism over the past three, four, five years, which is something that business is going to have to deal with,” said Ola Källenius, who’s been at the helm of the German premium car brand since 2019.
Shortages in semiconductors and US restrictions on the export of certain chips to China have partly driven the automotive industry to regionalise some of its sourcing, but Källenius argued there were limits to the approach.