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european automakers collectively plummeted.

on tuesday local time, share prices of automakers such as bmw, mercedes-benz, volkswagen, porsche and renault fell sharply during trading. among them, bmw fell nearly 10% at one point.

on the same day, the bmw group adjusted its performance guidance for fiscal year 2024, lowering indicators such as delivery volume, earnings before interest and taxes, and return on capital employed.

bmw lowers its 2024 financial guidance

on tuesday local time, the bmw group lowered its performance guidance for fiscal 2024.

bmw said the suspension of some vehicle production due to technical problems would have a negative impact on the company's global sales in the second half of the year.

bmw added that technical issues related to the integrated braking system affected more than 1.5 million of its vehicles and would result in additional high warranty costs in the third quarter.

at the same time, bmw said that continued sluggish demand in important markets such as china also had an impact on sales.

as a result, the company has adjusted its guidance for fiscal 2024 as follows:

deliveries were down slightly compared to the previous year (previously they were up slightly);

ebit margin to be between 6% and 7% in 2024 (previously 8% to 10%);

return on capital employed (roce) was between 11% and 13% (earlier 15% to 20%).

influenced by the news, bmw's stock price plummeted during the trading session, falling nearly 10% at one point. as of press time, it was still down nearly 9%.

"bringing down" mercedes-benz, volkswagen and other european car companies

bmw's intraday plunge also "brought down" a number of european automakers. wind market data showed that mercedes-benz fell nearly 6% during the intraday session and was still down more than 4% as of press time.

volkswagen fell more than 4% during the session and was still down nearly 3% as of press time.

porsche also fell sharply during the trading session, falling by more than 3% at one point.

renault fell more than 5% during the session.

previously, the financial reports for the first half of 2024 released by the three major luxury car brands "bba" (mercedes-benz, bmw, and audi) showed that the performance indicators of "bba" showed a downward trend, among which the decline in profits was the most obvious. as for the reasons for the decline in performance, "bba" all mentioned that china's increasingly fierce market environment had a significant impact on their performance.

in terms of operating income, audi achieved operating income of approximately 30.939 billion euros in the first half of 2024, a year-on-year decrease of 9.5%; mercedes-benz achieved operating income of approximately 72.616 billion euros, a year-on-year decrease of 4%; bmw achieved operating income of approximately 73.558 billion euros, a year-on-year decrease of 0.7%.

in terms of profit, audi achieved an operating profit of approximately 1.982 billion euros in the first half of 2024, a year-on-year decrease of 42%. the operating profit margin fell to 6.4%, and the operating profit of each vehicle fell by 36.8% year-on-year; bmw achieved a net profit of 5.656 billion euros, a year-on-year decrease of 14.6%, and the operating profit margin fell to 8.65%, and the operating profit of each vehicle fell by 19.1% year-on-year; mercedes-benz achieved a net profit of approximately 6.087 billion euros, a year-on-year decrease of 20%, and ebit of 7.9 billion euros, a year-on-year decrease of 25%.

bmw said that in the fiercely competitive chinese market, its pricing strategy last year had eliminated the impact of market competition on sales to a certain extent. at the same time, consumer confidence in the chinese market remains low, which has pushed sales down to a level below expectations.

audi said it is facing challenges of intensified competition and shrinking high-end car market in china.

mercedes-benz said the decline was due to a slight decline in unit sales, unfavorable product and market mix, negative impact of net pricing and negative changes in exchange rates. at present, the chinese market has shrunk slightly, and market conditions in the high-end and luxury car markets remain weak.