Volkswagen and Mercedes: winnings break in - what does that mean for the future?
Volkswagen and Mercedes: winnings break in - what does that mean for the future?
Westeuropa, Europa - In the first quarter of 2025, the two automobile giants Volkswagen (VW) and Mercedes-Benz recorded drastic burglaries, such as VW reported a decline in profit by almost 41 percent to 2.19 billion euros compared to the previous year, despite an increase in group sales by almost 3 percent to 77.6 billion euros. The financial challenges were reinforced by higher losses in battery shops and special costs of around 1.1 billion euros.
These special costs are the result of CO2 provisions in Europe, a conversion to the software subsidiary Cariad and reserves for the diesel scandal. The operational result fell by around 37 percent to 2.9 billion euros. For Mercedes-Benz, the numbers were similarly worrying. The company reported a decline in net profit by 43 percent to 1.73 billion euros, while sales decreased by over 7 percent to EUR 33.2 billion.
market changes and forecasts
The declining sales figures at Mercedes-Benz can be felt, especially in China, where sales have dropped significantly. The company's EBIT fell by around 41 percent to 2.29 billion euros, and the adjusted operational profit margin in the car division was reduced by 1.7 percentage points to 7.3 percent. Analysts had expected a clearer decline, but the actual values were slightly above expectations.
Despite the challenging starting point, VW has confirmed the annual forecast, with customs effects of the current trade policy, especially under the presidency of Donald Trump. Arno Antlitz, the CFO of VW, pointed out that the order input in Western Europe had increased and the order books quickly filled. In addition, a significant increase in the sales of electric cars in Western Europe could be found.
trends in the automotive industry
The automotive industry is currently changing, led by manufacturers like Tesla. According to Statista , the largest electric car manufacturer worldwide is a Chinese manufacturer, which increases the challenges for traditional European brands such as VW and Mercedes-Benz. The demand for electric cars was rather behavior in 2024; Both in Europe and in the USA, the sales figures were behind the expectations.
The established manufacturers such as Volkswagen and Ford seem to slow down to electromobility, while the sales of electric cars in China significantly increase in favor of Chinese companies such as BYD. In addition, experts report that Volkswagen, BMW and Mercedes lose market shares in China, which has a negative impact on their sales and profits.
In the middle of these challenges, artificial intelligence plays an increasingly important role in the auto industry, especially in terms of autonomous vehicles and digital equipment. The trend towards the "software-defined vehicle" is becoming increasingly important for both manufacturers and customers, while traditional automotive suppliers are faced with falling profit margins. Nevertheless, the demand for batteries, semiconductors and software is growing strongly, which opens up new opportunities in a rapidly changing industry.| Details | |
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| Ort | Westeuropa, Europa |
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