Automotive industry: Three car manufacturers, four profit warnings: The electric wave is overwhelming VW, BMW, and Mercedes
Electric car boom in Europe, combustion engine collapse in China: The profits of German car manufacturers have plummeted in the third quarter. No improvement is in sight.
German automakers Volkswagen, Mercedes-Benz, and BMW have cut their profit forecasts, with BMW doing so twice in less than six months. In the first three quarters, the companies earned 5.6 billion euros in net profit, a 57% decrease from the same period last year. The decline is partly due to a 6.4 billion euro write-down by Volkswagen on its subsidiary Porsche, as well as a surge in electric vehicle sales in Europe, which has put pressure on profit margins.
The companies are struggling to produce electric cars at a similar cost to internal combustion engine vehicles, due to high battery costs.
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.
