Volkswagen and BMW see difficult 2013 due to tough rivalry, economy

Article by Anita Panait, on March 18, 2013

German carmakers Volkswagen Group and BMW Group expect a "difficult" 2013 as the vehicle market in Europe contracts, car prices drop and growth in China slows down. According to VW chief executive Martin Winterkorn, the carmaker is facing tougher competition and difficult economic conditions.

On the other hand, BMW CEO Norbert Reithofer said that conditions will likely remain challenging in many markets. Vehicle sales across the industry in Europe dropped in January to their lowest level since 1990, according to industry association ACEA. BMW and VW are both banking on growth in China and the United States to offset their shrinking sales in Europe.

BMW disclosed that its carmaking unit posted lower profits in 2012, as analysts expect the carmaker’s earnings to drop this year. Stefan Bratzel, director of the Center of Automotive Management at the University of Applied Sciences, remarked that Europe is not the only market where conditions are deteriorating.

He noted that growth in China decelerated to a one-digit percentage rate in 2012 while the US market will likely level off this year. He quipped that at the same time, costs to expand sales and services organizations are increasing. Winterkorn said during a press conference at VW’s headquarters in Wolfsburg that the carmaker is expected to log an increase in earnings before interest and taxes in 2014 after its 2013 profit matches the 2012 figure.

Another German carmaker, Daimler AG, made a forecast in February that its operating profit in 2013 will be flat from 2012. BMW reiterated that it is planning to post a third consecutive record this year in annual deliveries. BMW will release more forecasts for 2013 on March 19.

Topics: vw, bmw

If you liked the article, share on:

Comments

Recommended

The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 24, 2017
New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries