After the Giant's Profit Warning - More to Come

For the second time this year, car giant Volkswagen is forced to issue a profit warning. More similar announcements are to be expected for a crisis-stricken German car industry, according to an analyst.

» Updated:

» Published:

After the Giant's Profit Warning - More to Come
Photo: Michael Probst/AP/TT

Share this article

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.

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

Trump Proposes Ending Quarterly Reports for Wall Street Companies

Trump Proposes Ending Quarterly Reports for Wall Street Companies

EU Regulators Seek Stricter Crypto Supervision by ESMA

EU Regulators Seek Stricter Crypto Supervision by ESMA

Elon Musk Buys $1 Billion in Tesla Shares, Boosting Stock by 7%

Elon Musk Buys $1 Billion in Tesla Shares, Boosting Stock by 7%

China Investigates Nvidia for Competition Law Violations

China Investigates Nvidia for Competition Law Violations

USA and China Reach Framework Agreement on Tiktok's Future

USA and China Reach Framework Agreement on Tiktok's Future

Black Soldier Fly Oil and Protein Developed for Animal Feed

Black Soldier Fly Oil and Protein Developed for Animal Feed

Basmati Rice Dispute Stalls EU-India Trade Agreement

Basmati Rice Dispute Stalls EU-India Trade Agreement

Stockholm Stock Exchange Stalls as Wall Street Opens

Stockholm Stock Exchange Stalls as Wall Street Opens

Sweden Construction Costs Rise 0.4% in August Amid Higher Electricity Prices

Sweden Construction Costs Rise 0.4% in August Amid Higher Electricity Prices

Swedes Report Decreased Satisfaction with Banks This Year

Swedes Report Decreased Satisfaction with Banks This Year

Fashion Trade Sales Rise for Third Consecutive Month

Fashion Trade Sales Rise for Third Consecutive Month

Powell's Rate Signal Influences Swedish Households Too

Powell's Rate Signal Influences Swedish Households Too

Asian Markets Rise Despite Weak China Data

Asian Markets Rise Despite Weak China Data

ANZ Bank Faces Record Fines for Bond Deal Misconduct

ANZ Bank Faces Record Fines for Bond Deal Misconduct

Trump Welcomes Foreign Investment and Workforce in the USA

Trump Welcomes Foreign Investment and Workforce in the USA

Government Boosts Support for Sweden's Regional Airports

Government Boosts Support for Sweden's Regional Airports

Klarna CEO: Embracing "Swedishness" as a Key Asset

Klarna CEO: Embracing "Swedishness" as a Key Asset

Handelsbanken Swish Payment Disruption Resolved

Handelsbanken Swish Payment Disruption Resolved

Government Proposes Increased Export Credit Guarantees for Swedish Companies

Government Proposes Increased Export Credit Guarantees for Swedish Companies

AstraZeneca Halts UK Research Facility Expansion Plans

AstraZeneca Halts UK Research Facility Expansion Plans