"In 2025, German car companies earned nearly 44% less than in 2024, with earnings before interest and taxes dropping to just 24.9 billion, the lowest since 2020."
"Porsche's pivot back to combustion-engine vehicles cost around 3.9 billion, which, along with tariffs, nearly erased last year's profits."
"Despite the challenges, automotive consultant Frank Schwope noted that German manufacturers are still making profits and paying dividends, indicating they are not facing collapse."
In 2025, German car manufacturers faced record losses due to tariffs and restructuring costs, particularly affecting Porsche. The shift back to combustion-engine vehicles incurred costs of approximately $4.5 billion, erasing profits. Volkswagen and Mercedes-Benz experienced sharp revenue declines, while BMW's decline was more moderate. Overall, earnings before interest and taxes for major manufacturers dropped to the lowest level since 2020. Despite the bleak outlook, industry experts believe that German carmakers remain profitable and capable of paying dividends, although comparisons to pre-COVID profits reveal a stark contrast.
Read at www.dw.com
Unable to calculate read time
Collection
[
|
...
]