VW and BMW spread the gloom at Frankfurt show

Volkswagen and other carmakers have warned that trade tensions risk dragging the global economy into a recession as the fallout starts to hit consumers.

The gloom of the US and China’s tit-for-tat tariffs cast a shadow over the Frankfurt Motor Show this week, where carmakers were seeking to whip up interest in critical new electric models. The geopolitical volatility adds another layer of uncertainty to an industry in the midst of a radical overhaul as the end of combustion-engine era looms.