The operating profit of German car manufacturers has fallen to the levels of the 2009 financial crisis. No improvements are expected in 2026. Germany's role in global automotive manufacturing is becoming less significant, writes DW.
Sales and revenue of Volkswagen, BMW, and Mercedes-Benz remained relatively stable in the third quarter of 2025 compared to the same period in 2024. However, their operating profit plummeted by nearly 76% to approximately €1.7 billion. This is the lowest figure since the third quarter of 2009, according to an analysis by the German auditing and consulting firm EY, published on Monday, December 15.
According to its assessment, the current pressure on German car manufacturers is comparable to the crisis of 2008-2009. No other major automobile-producing country has shown such weak results as Germany. In comparison, Japanese car manufacturers saw their operating profit decline by about 29% during the same period, while companies from the USA and China experienced a decrease of about 14%.
Expert: German Car Manufacturers in Crisis
"The global automotive industry is undergoing a deep crisis. But it is the German car manufacturers that are suffering particularly hard right now," commented EY auto expert Constantin Gall.
According to him, the reasons include weak demand for expensive premium cars, American tariffs, unfavorable exchange rates, as well as high costs for modernizing production and investing in electric vehicles.
The German Auto Industry Faces New Job Cuts
According to German auto expert Ferdinand Dudenhöffer, car production in Germany will continue to decline next year. The number of employees in German auto plants could decrease from the current 720,000 to 650,000 by 2027, he stated.
In international comparison, the role of Germany and all of Europe is becoming less significant. "Growth is occurring in Asia, and Asian car manufacturers - Japan, South Korea, and China - are increasingly dominating the automotive business," noted the expert.
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