HYperdrive

China’s Spending Slump Is Crushing Global Carmaker Profits

  • Manufacturers cite rising competition in biggest auto market
  • Higher expenses on factories, new EVs also weighing on returns
Lock
This article is for subscribers only.

BMW AG and Volkswagen AG capped a painful earnings period for global automakers that are contending with waning electric-car sales and weak demand in China.

Both manufacturers on Thursday reported declining second-quarter earnings after their sales fell in the world’s biggest auto market, where a deepening home sales crisis is weighing on spending.