BMW fights with a dramatic drop in profits: the crisis of the German auto industry!

BMW fights with a dramatic drop in profits: the crisis of the German auto industry!

München, Deutschland - The German automotive industry is experiencing a dramatic slump in profits, and BMW is at the center of this crisis. For 2024, the Munich -based company reported a decline in net profit by a terrifying 37 percent to only 7.7 billion euros, as krone.at . This is already the second decline in a row after the profit had also dropped significantly last year. Sales fell 8.4 percent to a total of 142 billion euros. The difficulties are caused primarily by weak sales in China and technical problems with brake components from the supplier Continental.

situation in the industry

BMW is not alone, because other large German car brands are also affected by similar setbacks. Volkswagen reported a decline in profit from 31 percent to 12.4 billion euros, while Mercedes-Benz recorded a minus of 28 percent to EUR 10.4 billion. Even Porsche had to accept a dramatic decline from 30 percent to 3.6 billion euros, which underlines how often the automotive industry is under pressure, such as Junge Freiheit

Despite the challenging circumstances, there is a touch of optimism from Munich. BMW expects the sales figures to rise slightly in the current year, especially thanks to new models and growing demand in the electric market. Nevertheless, the financial forecast remains uncertain, since the company does not give any specific figures for profit after taxes.