Part 8/10:
In contrast, traditional automotive manufacturers, such as Audi and Boeing, find themselves in a precarious position due to their extensive reliance on global supply chains. As Lutz pointed out, this escalating trade conflict has already led to reported “force majeure” events, where suppliers are unable to ship critical components. Thus, the potential for production halts in these large manufacturing firms increases significantly.
Recommending a Revised Negotiation Strategy
Throughout the discussion, Lutz underscored that the U.S. needs a more sophisticated strategy in negotiating trade deals, particularly with China. He argued that negotiations should leverage stronger alliances with other Asian countries like Taiwan and India to counter China's bargaining power effectively.