Exciting background – Auto -crisis: also a huge win from BMW

First of all, Bayern also suffered the current background: in addition to weakening the sale in China, Bayern also had problems with brakes that fall under the continental of the supplier. The sale also had to accept a clear damper. 142 billion euros is a minus of 8.4 percent. After all, BMW expects an increasing demand for the current year. Despite the “challenging” situation and the recently imposed inches imposed by the US, the input tax result should again land at the level of 2024. BMW gives no prediction for profit after taxes.

BMW is not alone with its profit distribution. The other two major German car companies, Volkswagen and Mercedes-Benz have also reported similar accidents. At VW it went with EUR 12.4 billion to EUR 12.4 billion, with Mercedes with 28 percent to EUR 10.4 billion. Among other things, they complain about the difficult environment in China.

Porsche also reported a violent drop in profit this week of 30 percent. The profit crashed at 3.6 billion euros. De Stuttgart also complains about the difficult environment in China.

So are the German car manufacturers deep in the crisis? This depends on the perspective from which you look at: money or future.

For the time being it is well earned – loss is relative
To correctly assess the question of the financial situation, it is worth greater. The current results should not only be compared in recent years, says industrial expert Frank Schwope, the car industry at the University of Applied Sciences in Mittelstand in Cologne and Hanover.

“We are currently seeing standardization after a special situation with previously unknown profit. After the first Corona inzincing in 2020, there was hardly any discounts and a shift to more expensive models in the following years- mainly because of the chip or vehicle lack, ”he explains. “This raised the manufacturers such as VW, Mercedes or BMW Exorbitant High Margins, which are normally not available.”

This can also be understood about the BMW numbers: the previous record profit of 18.6 billion euros dates from 2022. 2021 and 2023 It was more than 12 billion euros. In comparison, the current result looks void. But before these three special years changed the benchmark, the old record profit of 2017 amounted to 8.7 billion euros. Even if you take inflation into account, the current result of 7.7 billion does not look so bad compared to.

This is how it also sees Schwope, but that relates to all three large companies: “The current figures are not bad. They only look bad compared to the special years, “he says. He doesn’t want to talk about crisis. “Of course it always depends on defining a crisis, but I think more about the time that VW, for example, slipped into the red figures.” In any case, the current figures are no reason to complain.

The industry is worried about the future
However, this is not a reason for everything -because times are a challenge and the manufacturers have justified a justified “concern about an imminent crisis and do well to adjust the structures at an early stage,” says Schwope.

VW is already there: among other things, almost every fourth job was lost in Germany by 2030. Mercedes also wants to reduce the costs of several billion euros in the coming years and has announced a severance payment program. And the list can be continued: at Porsche there are 2,900 jobs on the strap list at Ford in Germany. The suppliers are also removed or dismantled: Bosch, Schaeffler, ZF, Continental, ThyssenKrupp – to name only a few names.

These concerns also express themselves in the mood in the industry. And it’s bad – especially if you also look at the suppliers. The Business Climate Index for the car industry, which is raised by the IFO Institute, is currently almost 35 points deep in red.

After all: BMW can escape a little. The permanent employee staff has recently increased somewhat.

Disturbed supply chains, growing uncertainties
The global car industry also sees the Alixpartners management consultancy in particular affected by disruption. The biggest problems are disturbed supply chains, increasing material costs and growing uncertainties in international trade relationships. Last but not least, the last one is threatened by the customs plans of US President Donald Trump.

Moreover, there are the relatively high costs for personnel and energy in the home country. And then there is China: on the one hand, the world’s largest market that has long ensured rapid growth and high profit is much more difficult. On the other hand, the competition from there becomes stronger – especially in the increasingly important area of ​​electromobility.

The latter is also a problem area in itself. The pure electricity still makes only relatively small shares when selling the companies and the parallel work with combustion engines, hybrids and electric cars makes much more complicated. And the sale of the electric cars does not progress entirely for most manufacturers. BMW is much better here than the other German manufacturers and was able to considerably increase its section last year. But sold 427,000 electric vehicles are not even a fifth of their own overall production.

Nevertheless, BMW describes it as the most important growth motor. The new class must bring extra reservoirs here. Their first serial vehicle is planned to go into production at the end of 2025. BMW also took a lot of money for this year. The group spent a total of 18 billion euros on research and development.