The German automotive industry in deep crisis: why BMW, Audi and Mercedes are losing billions

According to hvylya.net: In a comment for UNIAN, CEO of Luaz Motor Vadim Ignatov discussed the problems arising in the German automotive industry. He noted that low innovation, high costs, and weak competitiveness in the electric transport sector have led to a decrease in sales of automotive giants such as BMW, Mercedes, Audi, and Porsche.

The problems became evident after Volkswagen's profit fell by 36.3% in the second quarter of 2025 and plans to cut 35,000 jobs by 2030. The situation has also worsened for subsidiary brands Audi and Porsche.

Audi nearly halved its profit and plans to eliminate up to 7,500 jobs. Porsche is also facing troubles due to losses of 400 million euros and difficulties in producing modern electric vehicles.

Systemic problems of the German automotive industry

Vadim Ignatov emphasized that the problems are arising from energy constraints in Germany and high employee wages, which complicate production. It should be noted that the decline in demand for cars in the EU due to a transition to alternatives negatively affects German companies.

The expert noted that the drop in demand for cars in Europe has led to problems for German brands, which cannot present competitive solutions. Volkswagen is turning to Chinese brands and investing in electric vehicle technologies to overcome the crisis.

Ignatov pointed out that not all German automakers are experiencing problems. BMW is actively working on a new technological platform that opens up new opportunities. However, Mercedes is losing its position due to a lack of clear strategy, while Porsche has issues with the sales of electric models.

Vadim Ignatov's comments regarding the problems of the German automotive industry indicate the need for strategic solutions in the field of electric transport and competitiveness in the international market for German automakers. Market conditions and technological transformations require rapid adaptations and investments in the future to maintain leadership in the industry.