The David Lin Report · Friday, July 31, 2026
Florian Gomez believes the European Central Bank raising interest rates is a poor policy choice given the struggles in Germany's auto sector, which faces potential mass layoffs. He notes declining profits and deliveries for major German car manufacturers like Volkswagen, Mercedes, BMW, and Porsche.
“Volkswagen is reporting potentially mass layoffs. Car makers expect to sell 3% fewer vehicles this year. It could eliminate 100,000 jobs. It's deliberating this. Um, across the auto sector in Germany, I'll just read you a few stats I pulled out before this interview here.”
“Volkswagen operating profit fell 10 12% in Q2, Q2 2026. Mercedes roughly 30% declining in Chinese sales. BMW Q2, uh, EBITDA down 39% revenue down 8%. Porsche arguably the largest toughest transition. Deliveries down 16% globally in first half of 2026.”
“And yet the ECB is still raising rates. What is your response? Well, first of all, I have to honestly tell you that, uh, I mean, this whole thing is so complicated.”
“I don't think it's a good idea to raise interest rates in this environment.”