"German car manufacturers turned in their worst quarter since the days of the 2009 global financial crisis, according to a study released Monday by financial consultancy EY. Together, earnings before interest and taxes (EBIT) at Germany's biggest automakers, Volkswagen, BMW and Mercedes-Benz, plummeted by nearly 76% in the quarter between July and September. The statistics indicate that although sales and revenue remained stable, production and running the business has become much more expensive, and carmakers are earning less from sales."
"The earnings between July and September amounted to 1.7 billion ($2 billion), the lowest since quarter 3 in 2009, the study showed. The average EBIT of 19 of the world's larges carmakers in the study shrank by 37% to around 18.9 billion the lowest since 2018. EBIT is a measure showing a company's profit from core operations, and excludes effects on the bottom line from financing and taxes."
Earnings before interest and taxes at Volkswagen, BMW and Mercedes-Benz fell nearly 76% in the quarter between July and September. Combined earnings in that quarter amounted to 1.7 billion dollars, the lowest quarterly total since Q3 2009. The average EBIT of 19 large global carmakers shrank 37% to about 18.9 billion, the lowest since 2018. Sales and revenue stayed stable while production and operating costs rose, reducing profits from vehicle sales. A weak market, high tariffs, adverse exchange rates and heavy investments in electric vehicles and restructuring pressured margins industry-wide. Germany emerged as the worst-performing carmaking nation in terms of profit and revenue, despite electric vehicle sales growing steadily.
Read at www.dw.com
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