Carmakers Flag Difficult Year on Costs, Muted EV Demand

  • Mercedes, Toyota rely on other drivetrains to defend sales
  • Slow growth in Europe, EV price war in China add to issues
Auto: BMW's Earnings Decline, Toyota's Weak Outlook
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Automakers across Europe and Asia are warning of a challenging year as rising costs and waning demand for electric vehicles weigh on profits.

Mercedes-Benz Group AG on Wednesday said it will sell combustion-engine cars longer than expected amid disappointing EV sales. Toyota Motor Corp., which sees operating income slumping by a fifth this fiscal year, is relying on hybrids to counter lower output. BMW AG, even as it’s doing better on EVs, flagged problems including higher manufacturing expenses.