Auto industry’s investments in electric vehicles squeeze profits – commentary
Daimler, Volkswagen, and other car manufacturers are investing billions of euros in the production of more than 200 hundred electric vehicle models between now and 2022, and that comes at a high cost, writes Franz Hubik in a commentary for Handelsblatt. Pre-tax profits of the 25 largest auto companies, such as Toyota and General Motors, have slumped since 2013, and the push towards electrification will put further pressure on their profit margins. “More electric cars are good for the CO2 balance sheet, but not so good for the company balance sheet – at least at the moment,” Daimler CEO Dieter Zetsche told his company’s shareholders in April.
Read the commentary in German here.
For background, read the factsheet Reluctant Daimler plans “radical” push into new mobility world and the dossier The Energiewende and German carmakers.