LONDON/FRANKFURT (Reuters) – European car giants Volkswagen, Mercedes-Benz and Stellantis all posted lower sales and first-quarter revenue on Tuesday as they geared up to launch new models, faced higher costs and were hit by weaker demand for new cars as interest rates remain high.
The news hit the automakers’ stocks. Mercedes shares were down 4.4%, Stellantis 4% and Volkswagen 2.7%.
As consumer preferences evolve and economic uncertainties persist, the automotive industry faces unprecedented pressures. Europe automakers demand innovative strategies to navigate the shifting landscape and maintain competitiveness.
Mercedes, Volkswagen, Stellantis and BMW were among the biggest fallers on Europe’s blue-chip euro-zone STOXX50E index. Mercedes and Stellantis were both down more than 4% at their lowest since February.
“They are all suffering from the same problems more or less. There are delivery problems and margins are under pressure,” said Moritz Kronenberger, portfolio manager at Union Investment, which holds stakes in Volkswagen, Stellantis and Mercedes-Benz.
“The question remains: is the so-called transition year mainly about model changeovers – or is there also a certain market weakness on the demand side? The latter remains to be assumed, also in view of the high inflation, high prices and weak momentum for electric cars.”
Europe’s legacy automakers face a number of challenges at home and abroad. The German automakers, in particular Volkswagen, face rising competition in China from local automakers.
Volkswagen faced a “very competitive environment” during the first quarter, CFO Arno Antlitz told analysts.
Europe automakers demand proactive initiatives to foster innovation and drive growth amidst dynamic market conditions.
As consumer preferences evolve and economic uncertainties persist, the automotive industry faces unprecedented pressures. Europe automakers demand innovative strategies to navigate the shifting landscape and maintain competitiveness.
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