Volkswagen, BMW and Mercedes: Analysis: German car manufacturers fall back

For the German car companies, things ran worse last year than for many of their competitors. This shows an analysis for which the examination and consulting company EY has evaluated the figures of the 16 leading manufacturers worldwide. In terms of sales development, it was only worse at Stellantis. The Opel mother recorded a minus of 17 percent. In 2024, VW generated a slight increase in sales, BWM and Mercedes-Benz did less business. Overall, their revenues fell by 2.8 percent.

For comparison: The turnover of all companies examined increased by 1.6 percent in 2024 and skipped the mark of two trillion euros. With a proceeds, the German trio was still around 30 percent. However, the proportion of total sales fell in the previous year comparison.

VW, BMW and Mercedes also significantly behind the majority of other groups when operating. Better than the German companies, Japanese manufacturers and US carmakers developed.

Ey expert: The wind turned

According to EY market observer Constantin Gall, it is not round for German manufacturers: “Sales develops weakly, the high investments in electromobility do not pay for themselves because the demand is far from as much as hoped.” In addition, there are homemade problems such as expensive software defects, restructuring costs and recalls.

In 2023, the premium manufacturers have been able to enforce high prices, Gall said. But the wind turned. The economic situation and global conflicts significantly reduce demand. The competition will be increasingly held over the price. In addition, asian manufacturers with their innovative and at the same time inexpensive vehicles are worried to the Germans.

Crisis in the auto industry

In view of the weak economy, the auto industry is in the crisis and suffers from the lower demand primarily according to electric cars. Several manufacturers and suppliers have already announced savings programs with job cuts in recent months.

The United States is likely to tighten significantly: In the past week, US President Donald Trump had made his threats true and announced additional tariffs of 25 percent for all car imports for the beginning of April. This is especially due to manufacturers from Germany. Because the USA is its most important export market according to the latest figures from the Federal Statistical Office. No other country took as many new cars from Germany as the United States.

Gall: “You can’t save yourself healthy”

In the current year, Gall does not expect a positive trend reversal – neither for sales nor in sales and profits: “In Europe, the economy is paralyzed in the USA that the tariffs that have now been introduced are likely to result in significant sales losses and in China there is a bitter repression competition that is strongly carried out over the price”. The companies would now have to do their homework. There is no way around a strategic realignment and focus on the brand core. A austerity course could only be a means to the purpose of finance your own transformation “You can’t save yourself healthy,” said Gall.