German automakers face revenue and profit declines amid industry crisis

German automotive industry Volkswagen profit warning automotive sector crisis IG Metall protests China market competition

The German automotive industry is facing a severe crisis, characterized by declining revenues and profits for major manufacturers. An analysis by EY reveals that Volkswagen, Mercedes-Benz, and BMW saw their combined revenues fall by 2.9% to 284 billion euros in the first half of 2026, marking the third consecutive half-year decline. Their combined operating profit (EBIT) dropped 19% to 13 billion euros, the lowest level since 2020. This stands in stark contrast to the broader global market, where 15 of the 19 largest automakers reported revenue growth.

Volkswagen is under particular pressure, drastically cutting its full-year 2026 operating margin forecast to a maximum of 1%. The company is also facing approximately 10 billion euros in special charges, including significant write-downs related to Porsche. These financial struggles are compounded by a 25% drop in sales within the Chinese market.

In response to job cuts and restructuring, the IG Metall union has called for nationwide protests across more than 200 locations, expecting over 100,000 participants. The union is demanding that companies protect the 35-hour work week and increase investments in domestic production, such as battery manufacturing and autonomous driving technologies.

Entities

BMW · BMW Group · EY · IG Metall · Mercedes-Benz · Mercedes-Benz Group · Tesla · Volkswagen

Claims

What the coverage asserts, and how many sources carry each claim.

[● 4 SOURCES] The IG Metall union expects over 100,000 participants in its protest actions. www.radioarabella.de · www.cash.ch · www.finanzen.at · www.butenunbinnen.de
[● 14 SOURCES] The 19 largest global automakers saw a 3.6% revenue increase to nearly 1.05 trillion euros. www.leinetal24.de · www.ad-hoc-news.de · www.blogspan.net · www.nachrichten.at · www.business-punk.com · +3 more
[● 14 SOURCES] The combined operating profit (EBIT) of Volkswagen, Mercedes-Benz, and BMW fell 19% to 13 billion euros in H1 2026. www.leinetal24.de · www.ad-hoc-news.de · www.blogspan.net · www.nachrichten.at · www.business-punk.com · +3 more
[● 16 SOURCES] The combined revenues of Volkswagen, Mercedes-Benz, and BMW fell 2.9% to 284 billion euros in the first half of 2026. www.leinetal24.de · www.ad-hoc-news.de · www.blogspan.net · www.nachrichten.at · www.hurriyet.de · +5 more
[● 4 SOURCES] The IG Metall union has called for nationwide protests across more than 200 locations. www.radioarabella.de · www.cash.ch · www.finanzen.at · www.butenunbinnen.de
[● 2 SOURCES] Sales of the three German automakers in China dropped by 25% in the first half of 2026. www.ad-hoc-news.de
[● 3 SOURCES] Volkswagen expects an operating margin of at most one percent for the full year 2026. www.kapitalmarktexperten.de · www.schmidtisblog.de · www.boersennews.de
[○ 1 SOURCE] Volkswagen faces special charges of approximately 10 billion euros. www.kapitalmarktexperten.de
[● 2 SOURCES] The IG Metall union is demanding that companies do not touch the 35-hour work week. www.cash.ch · www.finanzen.at