According to a current study, German car manufacturers came through the Corona crisis comparatively well. Experts now consider manufacturers to be better equipped to deal with future issues in the industry.
In an international comparison, according to a new study, the German car manufacturers have survived the corona crisis best so far. This is the result of a study by the consulting firm EY, which was published before the start of the auto show in Shanghai today. Accordingly, Daimler, Volkswagen and BMW, with a combined decline in sales of ten percent, a drop in sales of 14 percent and a decrease in operating profit of 26 percent, fared significantly better on average than large manufacturers from other nations. Across the industry, the total sales of the 17 largest manufacturers worldwide fell by 13 percent in the previous year, according to the EY study. The car sales went down by 16 percent, the operating result by as much as 37 percent. The French brands were hit particularly hard. According to the study, only four companies had a positive profit development: Tesla, Daimler, General Motors and Kia.
China supports the industry
It is above all the flourishing business in China that saved the balance sheets of Volkswagen, BMW and Daimler. In 2020, more than every third new car (39.4 percent) was handed over to a Chinese customer. If you look at all 17 of the world’s largest car companies, the total sales of cars from these manufacturers in China only fell by four percent. In the US, the decline was 14 percent, in Western Europe, sales fell by 25 percent . Constantin M. Gall, Head of Automotive & Transportation at EY, explains: “While some companies got deeply into the red, others came through the crisis comparatively well, largely due to their regional sales focus, but also very much because of their current product portfolio is driven. ” “Companies with a large share in China benefited from the relatively stable development on the Chinese sales market. Those who are primarily active in Europe, on the other hand, had to accept massive losses,” said EY auto expert Peter Fuß.
Fair open to visitors
This also explains the great importance of the auto show that is now starting in Shanghai. Around 1000 exhibitors will present their products to hundreds of thousands of visitors in more than twelve halls by April 28th.
If you want to visit the fair in person, you have to show a negative corona test. In addition, visitors have to have their body temperature measured and use a mobile phone app to prove that they have not been in risk areas.
Praise for German automakers
The big topics of the fair are e-mobility and connectivity. And it is precisely in these areas that industry observers attest that the German representatives now have a good market position after a mixed start. They are now faster, more determined, said the German management consultant Peter Hage from the Beijing-based Districom Group. “The Volkswagen Group has done a very good job with the electric cars,” said the director of the Center for Automotive Research, Ferdinand Dudenhöffer. “The China strategy at VW-Audi-Porsche-Skoda is right.” Mercedes also started “lively” with new models in Shanghai. “Only BMW has been very hesitant in the past,” said Dudenhöffer. That is about to change: the German carmaker wants to generate a quarter of its sales with the sale of electric cars by 2025. This was announced by BMW China boss Jochen Goller in the run-up to the Shanghai Auto Show. Last year the share was around four percent.
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