Overview
- An EY analysis of the 19 largest carmakers found Volkswagen, Mercedes‑Benz and BMW saw combined revenue fall 4.3% year‑on‑year and their operating profit drop about 23.3%, while the 19‑firm group posted a collective revenue rise of 1.7%.
- China proved a central problem for the German trio, with EY reporting a 16% sales decline there as local electric brands and lower demand for high‑priced premium cars eroded market share.
- US manufacturers outperformed, with roughly 5% revenue growth and an about 83% rise in operating profit driven in part by reversed import‑duty rulings, refunds and some one‑off accounting effects.
- EY attributes the German setback to a deep industry shift that includes costly overcapacity, heavy investment in vehicle software and a slower rollout of electric models, which together squeeze margins.
- The results raise pressure on German groups to cut costs, speed up EV and software development, and defend market share — moves that could affect jobs, suppliers and pricing as competition intensifies.