
Volkswagen, Mercedes and BMW are facing a tough time in the global auto market, with the biggest hit coming from China. A new analysis by consulting firm EY shows declining revenue and profits for the three German manufacturers, at a time when most international competitors are growing.
According to the analysis, the world's 19 largest automakers increased revenue by 3.6% during the first half of the year, reaching nearly 1.05 trillion euros.
In contrast, VW, Mercedes and BMW collectively recorded around 284 billion euros in revenue, 2.9% less than a year earlier. Of the 19 companies analyzed, 15 increased revenue, while the three German manufacturers ranked 16th, 17th and 19th for their growth.
Even more significant was the hit to profits. The operating profit of the three companies fell by 19%, to 13 billion euros.
The biggest problem remains China. Sales of VW, Mercedes and BMW in the Chinese market fell by 25% in the first half of the year. China's share of their global sales fell from 28.9% to 23.5%.
At the same time, Chinese manufacturers are increasing their presence in Europe. For this reason, German Vice Chancellor Lars Klingbeil has called for additional EU tariffs on plug-in hybrid vehicles from China.
Experts estimate that the tariffs could give German manufacturers some leeway, but warn that Chinese cars could become more expensive for European consumers, while Beijing could respond with trade countermeasures.