The ongoing military conflict between the U.S., Israel, and Iran is creating significant challenges for the global automotive industry. Automakers are grappling with disrupted supply chains, threatened sales in the Middle East, and sharply rising fuel prices.
Asian manufacturers like Toyota and Hyundai, which hold substantial market share in the region, are particularly vulnerable to prolonged hostilities. Sales within Iran, the region's largest market, are directly impacted, while shipping disruptions affect deliveries across neighboring countries. The blockade of oil shipments through the Strait of Hormuz is driving up crude prices, posing a specific threat to companies heavily invested in internal combustion engines, such as Stellantis.
In other industry news, Stellantis has appointed Dodge CEO Matt McAlear to also lead the Chrysler and Alfa Romeo North America brands. Meanwhile, Mercedes-Benz CEO Ola Källenius has criticized the EU's proposed 2035 zero-emission vehicle targets, calling them a de facto ban on combustion engines. Separately, Volvo Cars reported a sales decline, partly attributed to U.S. import tariffs, though sales of its fully electric models showed growth.