Volkswagen, Mercedes-Benz, and BMW—all have faced a decline in global sales. The figures dropped by 8.6%, 8%, and 4.9%, respectively, in the second quarter of this year.
The Germans, proud and unyielding, are in no hurry to admit their mistakes. They are searching for scapegoats, blaming their failures on Brussels’ “green” totalitarianism and, of course, on the rapidly advancing China. But fate seems to be testing them, presenting a choice that demands not only financial calculations but also deep strategic thinking.
Their bet on electric vehicles, against all reason, was made with a stubbornness worthy of a better cause. Until recently, sales of these cars were growing especially fast in China, and the Germans looked to that market for guidance. However, competing with local automakers has proven incredibly difficult.
The government supports Chinese manufacturers, who, in turn, operate almost at a loss just to boost sales. And then there’s the prolonged stagnation in the world’s largest auto market, which certainly doesn’t add any optimism.
As a result, Volkswagen, Mercedes-Benz, and BMW saw their sales in China from April to June drop by at least 30%.
Yet even in such dark times, glimmers of hope and common sense can be seen. For instance, Stellantis has released preliminary data on vehicle shipments in the second quarter—they increased by 10% compared to the same period last year. Nearly 1.6 million units—figures that speak for themselves. The reason lies in the company’s refusal to abandon internal combustion engines in its cars, actively promoting this approach. The result, as they say, is clear.
Experts from the “Avtovzglyad” portal are asking: why, amid all these setbacks, are the Germans unwilling to give up chasing the elusive “green idea” and focus on more realistic and effective strategies?
There is no answer to this question. Only time will tell whether the German automakers can find the right path in this complex world and take some meaningful step to pull themselves out of this vortex, or whether they will continue to act recklessly, closing factories and stripping people of their jobs.
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