FRANKFURT/STOCKHOLM (dpa-AFX) - Bad news from Volvo Cars once again cast a shadow over the auto sector on Thursday. After gains the previous day, German carmakers Volkswagen (VW), BMW, Mercedes-Benz, and Porsche AG all saw losses ranging from 1.2 to 2.7 percent. Volvo Cars shares in Stockholm plummeted even more dramatically, dropping by 22 percent following the automaker's quarterly figures.
Expert Harry Martin of Bernstein Research noted in his initial assessment that expectations had already been negative, but now things at Volvo Cars were even worse than feared. He described the Swedish company as taking a "major step back," with operating profit coming in at less than half of what was anticipated. As a result, market expectations should fall by a double-digit percentage.
As a result, the share prices of the four German carmakers are struggling to gain traction even looking ahead to 2026. At least Mercedes-Benz and Volkswagen shares had managed to return to positive territory for the year in the previous session, but that ground has already been lost. In addition to concerns about U.S. tariffs in 2025, the challenging market environment in Europe and ongoing worries about China have been weighing on the sector for some time. Rising costs and regulatory challenges during the transition to electromobility are also adding to the pressure./tih/la/jha/
