Source: Fortune
Summary
German carmakers Volkswagen, Mercedes-Benz, BMW, and Porsche reported significant declines in China sales for the April-June quarter, with drops ranging from 30% to 41% compared to the same period last year. The decline in China sales has affected their overall profits, despite gains in other regions. The German automakers face intensified competition from Chinese car brands, both in China and abroad.
Our Reading
The numbers tell one story.
Volkswagen’s sales in China plummeted 36.6% in the quarter, dragging down its global sales. The company plans to slash its model lineup by up to half after the latest sales declines. Porsche described China’s market environment as “challenging,” while Mercedes-Benz noted a “significantly weaker overall market and macroeconomic environment.” German auto groups are struggling to compete with Chinese car brands, which are updating their model lineup more frequently.
The German carmakers are facing a perfect storm of declining sales, increased competition, and a shift towards electric vehicles.
Author: Evan Null
