BMW outperforms Volkswagen as competition heats up in the automotive industry
In 2024, the US automotive market bustled with mixed results for the bigwigs – Volkswagen Group, BMW, and Audi. The core VW passenger car brand made strides, but the premium sub-brand Audi continued to struggle. BMW also scored a win, particularly in electric vehicles, while Mercedes-Benz and Porsche AG stayed tight-lipped. Stocks soared, thanks to potential less restrictive US trade policies under President Trump.
BMW's stock and Volkswagen were on a winning streak, garnering a 2.7% and 15.2% increase, respectively. Mercedes and Porsche followed suit. Investors, fascinated by Trump's proposed rollback on tariffs on European imports, eagerly snapped up these stocks. Italian Prime Minister Giorgia Meloni's meeting with Trump fueled this excitement, as past tariffs had put a damper on industries like automotive and semiconductors.
Volkswagen's Wolfsburg-based ops moved over 379,000 vehicles, a substantial rise. The Jetta sedan, a hot sell in the US, and SUVs Atlas and Tiguan led the surge. In Q4, sales jumped 7% to around 103,000 vehicles. However, Volkswagen's Ingolstadt-based subsidiary Audi witnessed a 14% plunge to about 196,500 vehicles in 2024. The Q3 showed resilience, but most models struggled. The fourth quarter wasn't kind either, with sales dipping 6% to nearly 57,000 vehicles.
Mini, on the other hand, faced a significant drop. BMW sold around 371,000 vehicles in 2024, a slight increase of 2.5% in the core brand. However, the Mini brand suffered a hefty loss of over one-fifth due to an ongoing model change.
BMW's electric vehicle (BEV) sales made a splash, up by around 12% to nearly 51,000 vehicles. The electric 5 Series and i5 propelled this growth. In Q4, BMW moved over 117,506 vehicles, a 9% rise compared to the previous year.
Now, let's delve into some juicy details. Volkswagen's sales spike was mainly due to models like the Jetta and Taos, which saw astonishing increases of 51.5% and 8.5%, respectively, in 2024 over 2023[1]. However, the 25% tariffs imposed on vehicle imports affected their supply chain, leading to halted shipments from Mexico[1].
Dude, BMW had a lucky escapade. They didn't take a severe hit from the tariffs, as most of their US sales involved domestic-manufactured vehicles[2]. Still, their stock performance would likely be impacted by their growth in EV sales, strategic investments in EV technology, and any other market fluctuations.
Audi stumbled just like Audi usually does. Their US sales slipped slightly, with a 3% drop reported in Q1 2025[2]. Their Mexican-imported Q5 experienced a significant dip in sales[1]. Audi's predicament was strikingly similar to Volkswagen's, thanks to tariffs on imports. But the corporate siblings are cooking up a plan to bypass these issues by planning to manufacture Audi models in the US[1][5]. ight, so their stocks will likely rise and fall based on the outcomes of these negotiations, market conditions, and broader economic factors.
In a nutshell, the auto industry felt the pinch of tariffs and supply chain disruptions, but players like Volkswagen and Audi are working around the clock to negotiate their way out of trouble. The fate of their stocks revolves around these negotiations, market conditions, and economic factors. So, keep your eyes peeled, folks. This ride's just getting started!
- In 2024, Volkswagen's core brand showed progress, while Audi, a premium sub-brand, continued to struggle in the US automotive market.
- BMW and Volkswagen saw significant increases in their stocks, with BMW recording a 2.7% rise and Volkswagen a 15.2% surge.
- The investor excitement was fueled by President Trump's proposed rollback on tariffs on European imports and Italian Prime Minister Giorgia Meloni's meeting with Trump.
- Volkswagen's Wolfsburg-based operations moved over 379,000 vehicles, marking a substantial rise, with the Jetta sedan and SUVs Atlas and Tiguan leading the surge.
- BMW's electric vehicle sales made a notable increase, rising by around 12% in 2024, with the electric 5 Series and i5 propelling this growth.
- The 25% tariffs imposed on vehicle imports affected Volkswagen's supply chain, leading to halted shipments from Mexico, while BMW managed to avoid a severe hit due to most of their US sales being from domestic-manufactured vehicles.
