What's the Deal: VW's Electric Car Sales Continue to Grow but Profits Are Dwindling
4 Articles
4 Articles
GERMAN carmakers VW, Mercedes and BMW have reported a 57% drop in profit despite unexpectedly strong growth in electric vehicle sales. The result was also affected by a write-down within the VW Group.
German carmakers VW, BMW, and Mercedes recently lowered their profit forecasts, despite an unexpected surge in electric car sales in Europe. However, growth in the number of electric models sold is not leading to higher profits: the German brands are failing to produce an electric car with margins comparable to those with an internal combustion engine. ‘The market success of our electric vehicles is putting extra pressure on our profits.’
Volkswagen is selling more and more electric cars and should be happy that years of investment are finally starting to pay off. However, the German car giant's financial results have moved in the opposite direction, and the company admits that the popularity of electric cars has an unexpected downside. How can it be that successful car sales do not lead to higher profits, and can Volkswagen break out of this contradiction?
The ecological transition imposed by the European Union overwhelms the German car giants. Despite the discreet development of electric sales, there are collapses of the profits
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