Only a few months after the previous announcement, Volkswagen is now forced to revise its forecast downward again. From previously estimating delivery of 9.5 million cars, the new forecast is 9 million, which means a revenue loss of almost 20 billion dollars.
Volkswagen is not alone, however, as Mercedes-Benz and BMW are also struggling with declining sales on the world's largest car market, China, and both have recently issued profit warnings. Furthermore, there is concern about a trade war between China and Europe.
Regarding Mercedes, we expect further profit warnings to come, says analyst Giacomo Reghelin, affiliated with Bloomberg.
The challenges facing the German automotive industry are now seen as so serious that it has even become a political issue. Germany is not alone in Europe, however, and the industry organization Acea has recently demanded a reassessment of the phase-out of fossil-fuel-powered cars to support the industry.
