European automobile giants faced serious challenges: a rapid decline in profit, reduction of large staff and suspending the work of factories. This is stated in the material of the newspaper “News”.
According to the publication, German manufacturers, who have recently determined the tone in the global market, are losing their positions due to high energy prices, attacks of Chinese electric vehicles and internal strategic errors. Therefore, compared to last year, the profit in BMW fell by 37%, 33%in Volkswagen and Mercedes-Benz-by 40.5%.
At the end of 2024, Volkswagen talked about the possible folding of production in Germany. In the last five years, the activation of anxiety has hit one third, which has become an worrying indicator of systemic problems. Then the analysts began to talk about the crisis and the company’s latest reports justified these fears.
German car manufacturer Audi (as part of Volkswagen Group) announced that it plans to reduce 7.5,000 employees by 2029. This measure will allow concern to save approximately 1 billion euros. Since 2019, the company’s personnel have already decreased by 48 thousand people. Experts call three main reasons for the problems of automatic motion. These include a sharp increase in costs due to energy criticism after the sanctions of the European Union, a decrease in demand in the main market on the PRC, and a delay behind Chinese electric vehicles and Tesla.
According to Izvestia, despite the EU’s ambitious plans for full transition to electric cars by 2035, their share in the European market is not only growing, but also fell from 14.6% to 25% to 25% in 2023 in 2023. Manufacturers who try to compensate for losses from electric vehicles exaggerate traditional automobile prices artificially. In the meantime, China shows the opposite picture – there, 35% of the market has already been occupied by electric cars and their shares can reach 50% by 2025.
Earlier Europe Reputed A serious crisis of your auto industry.
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Source: Gazeta
Anika Rood is an author at “Social Bites”. She is an automobile enthusiast who writes about the latest developments and news in the automobile industry. With a deep understanding of the latest technologies and a passion for writing, Anika provides insightful and engaging articles that keep her readers informed and up-to-date on the latest happenings in the world of automobiles.