zeit.de
Global Automakers' Profits Halved Amidst E-Car Slump and Market Challenges
A new study reveals that the operating profit of the world's 19 largest automakers plummeted by 49.2 percent in the first half of 2024, reaching €42.8 billion compared to €84.3 billion in the same period last year, while revenue remained stagnant, due to weak e-car sales, price wars, and high transformation costs.
- What is the primary cause of the significant decline in profits for major global automakers?
- The main cause of the 49.2% drop in operating profit among the 19 largest automakers is a combination of factors. These include weaker-than-expected e-car sales, intense price competition in key markets, and the rising costs associated with business transformation and restructuring. The shift in Chinese consumer preference towards domestic brands further exacerbates the challenges.
- How are geopolitical factors and economic conditions impacting the automotive industry's struggles?
- A weak global economy, coupled with an unstable geopolitical situation and unpredictable trade policies, contribute to the ongoing challenges facing the auto industry. These unstable conditions hinder market predictability and create uncertainty in investment decisions and future planning for automakers.
- What strategic steps should automakers take to navigate these challenges and ensure future viability?
- Automakers must make tough decisions, including shedding legacy assets, streamlining their oversized product portfolios, and focusing on clearly defined customer segments and competitive model offerings. The report emphasizes that downsizing and increased focus are necessary to adapt to the fundamentally changed industry landscape; simply maintaining size is no longer sufficient for success.
Cognitive Concepts
Framing Bias
The article presents a largely negative outlook on the auto industry's performance, focusing heavily on the substantial profit decline and the expert's warnings of a prolonged crisis. The headline, while factual, contributes to this negative framing. The repeated use of phrases like "deep and structural crisis," "ruinous price competition," and "the storm will not subside" emphasizes the severity and seemingly insurmountable nature of the challenges. While the article presents facts, the selection and emphasis of those facts create a pessimistic narrative.
Language Bias
The language used leans towards negativity. Terms such as "satten Gewinneinbruch" (substantial profit collapse), "ruinöser Preiswettbewerb" (ruinous price competition), and "die Probleme in China" (the problems in China) are emotionally charged and contribute to a sense of crisis. More neutral alternatives could include "significant profit decline," "intense price competition," and "challenges in the Chinese market." The repeated use of the metaphor of a "storm" also contributes to a dramatic and pessimistic tone.
Bias by Omission
The article focuses primarily on the negative aspects of the situation. While it mentions factors contributing to the decline, such as e-car sales, competition, and costs, it omits potential positive developments or counterarguments that might offer a more balanced perspective. For example, information about innovative strategies adopted by companies to tackle these challenges or potential market opportunities could have provided a more comprehensive view. Given the limited space, this omission is understandable but still results in a skewed narrative.
False Dichotomy
The article doesn't explicitly present false dichotomies, but by heavily focusing on the negative aspects and the expert's pessimistic prognosis, it implicitly creates a dichotomy between the past successes and the current seemingly insurmountable crisis. This could lead readers to overlook the possibility of adaptation, innovation, or even positive shifts within the industry.
Sustainable Development Goals
The article reports a significant decline in profits for major automakers, indicating a downturn in the industry's economic performance. This directly impacts decent work and economic growth, potentially leading to job losses, reduced investment, and slower economic expansion. The decline is attributed to various factors including weak sales of electric vehicles, price competition, and high transformation costs. The uncertain future of the industry also threatens the livelihoods of many employed in the sector and related industries.