STORY: Three of Europe's biggest automakers endured a tough start to the year.
Volkswagen posted a 20% drop in first-quarter operating profit as it was hit by lower sales and higher costs.
German rival Mercedes-Benz and Stellantis also posted lower sales and first-quarter revenue on Tuesday.
Weakness in car sales affected mass-market and top-end models alike.
But the automakers promised improvements as the year goes on and new models hit the market.
Luxury carmaker Mercedes-Benz was worst hit in Q1 and reported a 30% drop in earnings.
Stellantis said its revenue fell 12% in the quarter.
Despite that, all three stuck to profit or sales targets for 2024 as their new models debut.
VW believes rising orders in March will have a positive impact on second-quarter results.
Europe's legacy automakers face a number of challenges at home and abroad.
The German firms, in particular Volkswagen, face rising competition in China from local brands.
They are also spending vast sums on new, less-profitable EVs to compete with Tesla.
Meanwhile, Chinese automakers have introduced lower-cost electric models to Europe.
Volkswagen said it still expects 2024 sales revenue to rise up to 5%.
It also plans 30 new models by the end of the year, which should boost sales.
Tuesday's updates hit the automakers' stocks.
Mercedes shares were down 3.6% in early trade, while Stellantis nearly 2% and Volkswagen over 2.5%.
