Carmakers are reporting lower demand in Europe and North America amid what analysts say is growing evidence that consumers are balking at higher prices and keeping their cash for necessities.
Markets have been buoyed by data this week showing improved business sentiment in Germany and an uptick in eurozone services and manufacturing activity.
In Germany, food prices have been on the rise for more than a year. To help households, the government is considering a reduction of the VAT rate which could also benefit the climate and biodiversity.