Car sales in Europe took a hit in the first quarter as Volkswagen, Mercedes-Benz, and Stellantis all reported lower sales and revenue. The decline in sales was attributed to weaker consumer demand for new cars, high interest rates, and supply chain bottlenecks.
The news of the lower sales had a negative impact on the automakers’ stocks, with Mercedes shares down 3.6%, Stellantis down nearly 1.5%, and Volkswagen down 2.1%. Mercedes was the worst performer on Europe’s blue-chip euro-zone STOXX50E index, while VW and Stellantis were also among the biggest fallers.
Despite the drop in sales and revenue, all three automakers remained optimistic about their future prospects. They stuck to their profit and sales targets for 2024 as they prepared to launch new models and make improvements throughout the year.
The challenges faced by European automakers include rising competition in China, the shift towards electric vehicles, and the impact of pandemic-related supply chain disruptions. Despite these challenges, Volkswagen reported an uptick in orders towards the end of the first quarter, which is expected to boost its second-quarter results.
Overall, the European automakers are focused on navigating the current market conditions and adapting to the changing landscape of the automotive industry. With new models on the horizon, they are hopeful for a turnaround in sales and revenue in the coming months.