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Volkswagen, BMW and Mercedes-Benz saw EBIT drop nearly 76% amid rising costs and investments, marking Germany's worst automotive quarter since 2009, EY reported.
- On Monday, EY reported German car manufacturers had their worst quarter since 2009, with EBIT at Volkswagen, BMW and Mercedes-Benz plunging nearly 76% to �1.7 billion in July–September.
- Rising production and operating costs and large electric-vehicle and restructuring investments squeezed profits, EY cited weak markets, high tariffs and adverse exchange rates as factors.
- Using EBIT as the measure, the average EBIT of 19 of the world's largest carmakers shrank by nearly 76% to around €18.9 billion, highlighting industry weakness, EY noted.
- Germany's auto industry faces broader economic risks as German car companies Volkswagen, BMW and Mercedes-Benz saw EBIT plunge nearly 76% in the July–September quarter.
- Amid a global profitability crisis, Constantin Gall, EY automotive expert, said the industry faces deep challenges as EY noted fierce competition and weakening economies hit premium sales despite steady EV growth.
13 Articles
13 Articles
German carmakers suffered their worst quarter since the global financial crisis in 2009, according to a study published on Monday by financial consulting firm EY, reported by Deutsche Welle.
The global car industry is in a deep crisis - but the German car companies are particularly affected. Their business is as bad as it was in 2009.
No major car manufacturing country has performed as poorly as Germany, but the crisis affects not only the Germans but the entire global market.
Germany's cars weaken: profit loss, China losses, electric shock. Experts speak of a deep crisis.
The car industry is currently struggling with sluggish demand all over the world. German manufacturers are particularly hard hit.
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