German automakers make the world’s best cars. The German trio, Mercedes-Benz, BMW and Volkswagen Ag. has reported over 8 billion Euro in net profit last week – more precisely 8,19 billion Euro in Q2.
Germany’s Volkswagen (VW) Group has reported a profit jump in the first half of 2012 which has beaten even the most optimistic forecasts. Volkswagen’s second-quarter net profit rose 20% to 5.61 billion ($6.76 billion) and surged 40% to €8.77 billion in the first half of the year, boosted by a book gain related to option valuations on Volkswagen’s stake in sports car maker Porsche Automobil Holding SE’s and higher profit generated from the business.
The company warned that the car market would shrink further in Western Europe, where economies are slowing because of spending cutbacks and consumer worries about the debt crisis. Nonetheless, it reaffirmed its forecast for this year’s earnings.
BMW, the world’s largest premium carmaker however reported a 28% decline second-quarter net profit because of higher costs and a large one-off gain that boosted the year-ago result.
But the auto maker said “a deteriorating market climate could also have a perceptible impact on business” during the rest of the year.
The auto maker made clear that it faces macroeconomic risks to its business in the months ahead.
“The euro crisis and high public sector debt levels in a number of countries could cause the global economic climate to cloud over further during the second half of the year,” BMW said. It sees “risks primarily in a further deterioration of the economic situation in Europe and a slowdown of growth in China”.
Net profits came to 1.28 billion euros ($1.58 billion) in the second three months of the year, BMW said.
Mercedes-Benz Cars division that makes both Mercedes and Smart brands — saw operating earnings fall 16 per cent to €1.31 billion despite record unit sales globally for the Mercedes brand. Unit sales for Mercedes rose 4 per cent to 370,384.