VW is expected to report its lowest quarterly profit since 2009, while Daimler plans to cut costs to increase Mercedes-Benz’s sales.
It seems that shifting cars to China and the US is not enough for VW, BMW and Daimler to make up for the loss in the crisis affected European market. On October 24th VW will report its profit for the third-quarter, which is expected to be 2.3 billion euro, based on analysts’ predictions. This would be a 21% drop and the biggest since the 2009 global recession, when profit saw a decrease of more than 80%.
“The European crisis has definitely reached the Germans,” said Stefan Bratzel, director of the Center of Automotive Management in Bergisch Gladbach, Germany. “Next year, as the region’s market continues to fall, the problems for German manufacturers will really start to kick in.”
If German automaker are just starting to fell the crisis’ consequences, European car makers are struggling foe a long time to find solutions to be able to survive. PSA Peugeot Citroen has already requested the French government a funding lifeline, while Fiat will come with a new restructuring plan as it expects losses of 700 million euro this year.