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German automakers' China sales slump drives profit falls and job cuts
German carmakers BMW, Mercedes‑Benz and Volkswagen are facing a sharp decline in sales in China, the market that had long underpinned their growth. BMW’s Chinese sales fell 20.4 % in the first half of 2026 and 30.2 % in the second quarter, while the group’s profit after tax dropped 35 % to €1.2 billion. Revenue fell from €34 billion to €31 billion and the automotive operating result plunged more than 60 % to €629 million. Similar profit pressures are reported for Mercedes‑Benz and Volkswagen, whose Chinese market performance is also deteriorating.
The sales slump is prompting large‑scale restructuring across the German auto sector. BMW announced up to 8,000 job cuts, mainly in Germany, and Volkswagen disclosed plans to eliminate up to 100,000 positions and close four German plants. Porsche and other group brands have also announced thousands of redundancies. Across Europe, the industry has announced more than 70,000 job losses this year, driven by competition from Chinese electric‑vehicle makers and a broader market slowdown.
Volkswagen’s electric‑vehicle sales have also slipped, with a 5.8 % year‑on‑year decline in the first half of 2026, underscoring the broader challenge of transitioning from internal‑combustion models while losing market share in China.
Entities
Audi AG · BMW AG · China · Chinese market · German automotive workers · Mercedes‑Benz Group AG · Oliver Blume · Volkswagen AG · Volkswagen plant in Wolfsburg
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 4 SOURCES] The Chinese market was identified as the primary source of pressure for the three automakers in 2026. www.business-punk.com · www.fehmarn24.de · www.hna.de · www.tz.de
- [● 6 SOURCES] BMW's second‑quarter 2026 profit after tax was €1.2 billion, a 35 % decline year‑over‑year. www.business-punk.com · www.fehmarn24.de · www.hna.de · www.tz.de · www.leinetal24.de · +1 more
- [● 6 SOURCES] BMW's revenue fell from €34 billion to €31 billion in Q2 2026. www.business-punk.com · www.fehmarn24.de · www.hna.de · www.tz.de · www.leinetal24.de · +1 more
- [● 6 SOURCES] BMW's automotive operating result dropped over 60 % to €629 million in Q2 2026. www.business-punk.com · www.fehmarn24.de · www.hna.de · www.tz.de · www.leinetal24.de · +1 more
- [● 6 SOURCES] BMW's car sales in China fell 20.4 % in the first half of 2026 and 30.2 % in the second quarter. www.business-punk.com · www.fehmarn24.de · www.hna.de · www.tz.de · www.leinetal24.de · +1 more
- [● 6 SOURCES] Volkswagen and Mercedes‑Benz also reported shrinking profits and market shares in China during 2026. www.business-punk.com · www.fehmarn24.de · www.hna.de · www.tz.de · www.leinetal24.de · +1 more
- [○ 1 SOURCE] Volkswagen plans to cut up to 100,000 jobs and close four German plants. mecanicaonline.com.br
- [○ 1 SOURCE] European auto industry announced more than 70,000 job losses this year due to competition from Chinese electric‑vehicle makers. www.esdiario.com
- [○ 1 SOURCE] BMW announced up to 8,000 job cuts, mainly in Germany. mecanicaonline.com.br