Germany’s leading car manufacturers posted steep drops in profits during the first quarter of 2025, signaling growing pressure on the auto industry from global economic shifts.
BMW reported earnings of €2.2 billion for the quarter, marking a 26.4% decline compared to the same period last year. Mercedes saw an even steeper fall, with profits tumbling 43% to €1.73 billion. Volkswagen also reported a 41% decrease, with net profit down to €2.2 billion.
BMW attributed its weaker performance primarily to reduced demand in the Chinese market. While recent U.S. tariffs have yet to significantly affect results, the company warned that they are expected to have a growing negative impact in the months ahead.
BMW produces approximately 400,000 vehicles annually in the United States, which closely matches its U.S. sales. Roughly half of those vehicles are exported to markets outside the U.S., making BMW one of the country’s leading vehicle exporters by value. However, this export strength comes with a dependency on imported parts. Experts caution that “the burden of tariffs and potential retaliatory duties could seriously affect the company.”
