German car manufacturers in the red, US competitors in the fast lane

83 percent more profit for US automakers

The three recorded sales German car manufacturer Volkswagen, Mercedes-Benz and BMW recorded a decline of four percent in the first quarter of 2026. US manufacturers, on the other hand, increased by five percent, Japanese manufacturers by four percent, while Chinese manufacturers lost one percent. The German companies entered the prize Minus of 23 percentwhile Americans earned 83 percent more. Chinese companies posted a loss of 43 percent in profits, while Japanese companies fell by as much as 104 percent.

“The crisis is far from over”

Overall, the profits of the 19 major manufacturers fell by 32 percent. The average Marge sank von 5,3 to 3.5 percent. This is the lowest value since the Corona year 2020. “The crisis is far from over, especially for German car companies,” said Constantin M. Gall, industry expert at EY. The German auto industry is undergoing profound structural change. “The loss of foreign markets, expensive overcapacity, high software investments and a slow ramp-up of electromobility are weighing on the results,” said Gall.

Benefits twice from tariffs

The fact that US companies in particular are showing such a positive development is mainly due to the customs chaos. On the one hand, the US market is opposed to products from abroad due to import tariffs more shielded. On the other hand, the US Supreme Court partially overturned import tariffs, which led to high ones Repayments to the manufacturers. In Japan, meanwhile, the situation is that the large manufacturers Toyota and Honda are weakening, while smaller manufacturers such as Suzuki, Mitsubishi and Mazda have increased sales and profits.

Suzuki has the highest margin

According to the study, the Japanese manufacturer Suzuki ranks among the most profitable car companies with a margin of 10.9 percent took the top spot, followed by the US industry leader General Motors (9.4 percent) and Kia (7.5 percent) from South Korea. BMW comes in fourth place with 6.5 percent, Mercedes-Benz is in sixth place with 6.0 percent, and Volkswagen is in 13th place with 3.3 percent.

Many jobs are lost

Due to the weak performance of the German auto industry, austerity measures are being intensified. The Association of the Automotive Industry in Germany (VDA) expects a loss of employment of 225,000 jobs bis 2035. “The supplier companies are particularly affected because many jobs will be lost on the path from combustion engines to electromobility, especially in the supplier industry,” explained VDA President Hildegard Müller a few days ago.

Conditions at the location are the main factor

One reason for the German auto industry’s poor performance is a “serious and ongoing location crisis.” And the conditions are noticeably worsening. High taxes and duties, expensive energy, high labor costs, excessive bureaucracy – the list of challenges goes on,” she said.

Helmut Weinwurm, Austrian boss of the largest supplier Bosch, describes the location crisis as a “Soccer game uphill“However, things got off to an excellent start in the first three months of 2026. Sales growth in the single-digit range, up to five percent, is targeted for the year as a whole.