Germany's major automakers are cutting tens of thousands of jobs and slashing forecasts as sales in China, once their largest market, collapse. Volkswagen plans to eliminate up to 100,000 positions after lowering its full-year outlook in late July, though unions and the state of Lower Saxony have blocked the move. BMW announced on Aug. 3 it will cut 8,000 jobs worldwide after quarterly net profit fell 35 percent, while Porsche targets 5,000 further cuts in Germany by 2035. Audi and Mercedes-Benz have also downgraded annual passenger-car forecasts, with Mercedes writing off more than 700 million euros due to fierce Chinese competition.
Shares of German manufacturers have dropped 20 to 35 percent this year. Stellantis reported below-expectation earnings, with its stock down nearly 50 percent year-to-date.
Ferrari stands apart, having raised its outlook after launching the Luce electric model in May and meeting its full-year sales target for the car by July. Vehicle output at German plants has fallen 28 percent over the past decade.