The U.S. Secretary of Commerce wants to "dig" into Europe's core enterprises! Mercedes-Benz CEO: Europe is going to compete!

The Trump administration is actively lobbying top European manufacturers to relocate their headquarters to the United States, highlighting the fierce competition across the Atlantic in attracting investment.

According to the Financial Times, Mercedes-Benz CEO Ola Källenius revealed that U.S. Secretary of Commerce Wilbur Ross suggested about a year ago that the German automaker move its headquarters to the U.S.

Källenius stated that he rejected the proposal but warned that such aggressive investment solicitation from the U.S. sends a clear signal to Europe and Germany: they must face competition from the U.S. Ross showcased many advantages of investing in the U.S., including lower energy costs, streamlined regulations, and low tax rates.

This incident comes at a time when German automakers are facing dual pressures from U.S. tariffs and high domestic production costs, leading to shrinking profit margins. Meanwhile, many European companies are frustrated with the increasing regulations from Brussels, further undermining Europe's investment appeal.

U.S. Secretary of Commerce's Investment Push

Källenius confirmed on Thursday that he met with Ross in New York about a year before Ross was appointed as Secretary of Commerce in the Trump administration. "Ross excellently presented the compelling reasons to invest in the U.S.: lower energy costs, streamlined regulations, and low tax rates," Källenius stated.

Despite rejecting the suggestion to relocate headquarters, Källenius emphasized the significant message conveyed by this incident. "If you want capital to flow to Europe, you are actually participating in competition. We are in competition," he said.

Dual Pressure Facing German Automakers

German automakers are currently facing multiple challenges. On one hand, U.S. tariffs on imported cars are squeezing export profits; on the other hand, high production costs in the domestic market further weaken competitiveness.

Källenius stated that Mercedes-Benz expects "no relief from tariffs in the foreseeable future," but the company will continue to invest in the U.S. The company, which is celebrating the 140th anniversary of Carl Benz's patent for the first internal combustion engine car, currently has factories in Alabama and South Carolina.

Volkswagen CEO Oliver Blume told the German business newspaper Handelsblatt over the weekend that "large-scale additional investments are financially unfeasible" if tariffs are not reduced.

EU Regulations Trigger Business Discontent

Many European companies are disappointed with the increasing regulatory measures proposed by Brussels. Some German automakers are skeptical about the EU's plans to introduce local content rules, believing this could lead to rising costs.

Källenius warned that such rules should not be "implemented in a heavy-handed manner, as they could stifle growth, raise inflation, and cut off trade." He emphasized that Europe needs to recognize that it is facing investment competition and must understand the mindset of investors and the advantages the U.S. has in the business environment.

This statement reflects deep concerns within the European business community regarding the regulatory environment and investment attractiveness, highlighting the severe challenges Europe faces from the U.S. in the flow of global capital