Declining sales: This is how bad the car crisis is

German automakers face deepening financial strain as sales slump globally. BMW, Mercedes-Benz, and Volkswagen plan further workforce reductions. Volkswagen alone expects to cut up to 100,000 jobs worldwide in coming years. An analysis by the Center of Automotive Management in Bergisch Gladbach reveals that ten of the world’s top fifteen carmakers recorded falling sales through September. German manufacturers suffered disproportionately compared to the global average. The group sold 1.8 percent fewer vehicles in the first nine months than in the previous year. The three German giants lost roughly 780,000 units combined during this period. Volkswagen bore the largest absolute loss, delivering nearly 600,000 fewer cars than last year. No other manufacturer lost more volume in raw numbers. General Motors posted higher percentage declines, while Toyota fared relatively well due to its broad international lineup and popular hybrid models. Mercedes-Benz saw sales shrink by more than seven percent, rendering its recent model offensive ineffective thus far. BMW sales contracted by almost five percent. China drove much of the downturn. Sales on the world’s largest auto market fell by nearly 22 percent in the first nine months. Experts cite weak consumer spending and the removal of electric vehicle subsidies as key factors. Even BYD, the world’s largest EV maker, faces pressure from intense domestic competition. Conversely, European sales rose by more than six percent since January. High fuel prices pushed customers toward battery-electric vehicles, aided by government purchase incentives and tax benefits in Germany and other nations. Tesla continues to grow, while Stellantis recovered from a weak prior year. Japanese firm Suzuki also gained share. Chinese newcomers Chery and SAIC show sharply rising deliveries in Europe under brands such as MG, Omoda, and Jaecoo. CAM chief Stefan Bratzel describes a double challenge for German firms: losing ground in China while defending their home market against new rivals. Separately, Mercedes-Benz is restructuring its production approach. The Stuttgart-based company plans to build future vehicles differently, cheaper, and faster. Sources near the supervisory board indicate work is underway on a new product architecture for the next generation of models, targeted for release in the 2030s. This strategic shift aims to reduce costs and improve efficiency. The move comes amid intense scrutiny of the company’s finances. Leadership has emphasized the need for strict cost control to stabilize operations. These changes signal a fundamental rethink of how the brand develops and manufactures its upcoming fleet. The industry awaits details on how these architectural shifts will impact current supply chains and dealer networks. Competitors continue to monitor these developments closely as margins tighten across the sector.