Automotive industry: Market of hope with dark sides: VW, Mercedes and BMW seek their salvation in the USA
The automotive industry wants to salvage in the USA what is being lost in China. Oversized models and internal combustion engines are supposed to drive the margins that have collapsed again. This entails many risks.
German automakers, including Audi, Volkswagen, Mercedes-Benz, BMW, and Porsche, are heavily reliant on the US market, which is their most important hope for growth. The US market offers high margins due to the popularity of large and expensive SUVs, pick-ups, and vans, with over 80% of new car sales being non-electric vehicles. To boost growth, German automakers are investing heavily in the US, with plans to increase their market share, such as Volkswagen aiming to more than double its US market share to 8% by 2030.
However, they face challenges, including a shrinking overall market, with a 2% decline in new car registrations in the first three quarters, and high tariffs that affect their profitability.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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