Volkswagen, BMW and Mercedes
Analysis: German car manufacturer’s profits fall by half
Demand is weak, the market in China is in crisis: these are not good times for German car manufacturers. Profits are plummeting.
The crisis of the three German car manufacturers continues to gain momentum. From July to September, the operating profit (EBIT) of Volkswagen, BMW and Mercedes-Benz was around 7.1 billion euros – and thus fell by almost half compared to the third quarter of 2023. Sales fell by almost six percent to 145.4 billion euros. This emerges from an analysis for which the auditing and consulting company EY upgraded the financial indicators of the world’s 16 largest car manufacturers.
The first half of the year looked anything but rosy for German car manufacturers: compared to the same period last year, profits fell by 18 percent and sales fell slightly by 0.4 percent. According to EY market observer Constantin Gall, the three companies in particular are facing a “black quarter”. The records of the post-Corona years had hidden deep structural problems that are now mercilessly coming to light. The German auto industry is finding it difficult to keep up with the pace of new attackers in the electrical sector – for example from China. The costs are too high and the equipment is too cumbersome. “The next few years could be brutal.”
Thousands of jobs are at stake
The automotive industry is in crisis due to the weak economy and is suffering from weak demand, especially for electric cars. Ford wants to cut 2,900 jobs in Germany by 2027. In the factory in Cologne, which has been completely converted to electricity and where short-time work already applies, one in four jobs will be eliminated. At VW, wage cuts, factory closures and job cuts are being discussed. According to the works council, three plants and tens of thousands of jobs are at risk. IG Metall wants to mobilize against this with warning strikes. The suppliers Bosch, ZF, Continental and Schaeffler also want to cut thousands of jobs.
dpa
Source: Stern
