The weak demand in China is causing problems for German car manufacturers. The Munich-based company also has massive problems with the brakes it has supplied, while the Stuttgart-based company is falling behind when it comes to electric cars.
Mercedes-Benz sold fewer cars in the third quarter than a year ago, and BMW sales actually collapsed. Both companies are feeling the weak demand in China. At BMW there was also a delivery stop due to problems with brakes. Volkswagen and Audi want to present their figures on Friday.
BMW sales fell by 13 percent to around 541,000 cars in the quarter that just ended, as the company announced in Munich. The problems with brakes from supplier Continental resulted in a delivery ban for 320,000 cars that had not yet been handed over to customers.
Sales fell in all regions. In China, the decline was particularly significant at minus 30 percent to 148,000 cars. This means that BMW only sells a quarter of its cars there. In Europe, sales only fell by 1 percent to 219,000 vehicles. BMW cut its annual forecast in September and now expects a slight decline in sales and a significant decline in profits.
Luxury segment under pressure
Mercedes-Benz sold 503,600 cars in the third quarter, one percent less than a year ago. However, sales in the particularly profitable top product segment, which includes the S-Class, fell by 12 percent. In the important car market China, sales fell by 13 percent to 171,000 cars. This means that Mercedes continues to sell more than a third of its cars there.
Mercedes recorded a very sharp decline in fully electric cars: with 42,500 units, sales of electric cars fell by 31 percent. The company said the market environment for electric vehicles remains subdued in key markets. BMW, on the other hand, continues to make progress in selling fully electric cars: sales rose by ten percent to 103,000 in the third quarter.
Source: Stern