BMW Shuts Down, Leaving Volkswagen Group in Spotlight
Car Markets in 2024: A Mixed Bag
Americas' top automobile groups served up a blend of victories and challenges in 2024, with Volkswagen, BMW, and Mini leading the charge. The VW core brand shone, but luxury arm Audi continued to feel heat, while Mercedes-Benz and Porsche's performance is still up in the air.
Stock Market Reacts to Trump's Trade Policy
The strengthening economic winds under President Donald Trump appeared to favor automotive stocks at the beginning of the week, with BMW and the Group topping the DAX. Investors' favor swung towards companies with potential benefits from a potential relaxation in trade policies. Political chatter surrounding Italian Prime Minister, Georgia Meloni's sit-down with Trump, fueled anticipation. Tariff threats towards European imports, notably affecting sectors like automotive and semiconductors, had previously caused concern.
Jetta and Atlas Triumph for Volkswagen
Volkswagen of Wolfsburg clocked a sales rise of 15.2% in 2024, selling 379,000 vehicles. The volume-leading U.S. sedan model, Jetta, and the Atlas and Tiguan SUVs all saw gains. Q4 sales jumped 7%, ending at around 103,000 vehicles, showing steady progress.
Conversely, Audi, another VW subsidiary, faltered with a 14% sales drop, landing around 196,500 vehicles for the year. The Q3 was a rare bright spot, but other models struggled. Q4 sales dipped 6% to nearly 57,000 vehicles.
Mini Takes a Hit
BMW's total sales for 2024 edged up 2.5% to approximately 371,000 vehicles. However, the Mini brand suffered a significant loss of over 20% due to a model overhaul. The battery electric vehicles (BEVs) saw a 12% surge, mainly driven by the electric 5 Series and the i5. In Q4, Munich-based BMW sold around 117,506 vehicles, a 9% increase from the previous year.
Q1 2025 Sales Figures (Estimated)
While Mercedes-Benz, Porsche AG has yet to reveal their quarterly sales figures, it is estimated that Mercedes-Benz saw a slight increase in passenger car sales in the U.S. but a decline in overall U.S. sales, with 75,100 vehicles sold. Electric vehicle sales for the luxury brand dropped both globally and in the U.S. Meanwhile, Porsche AG is known for its strong EV offerings. Competitors like BMW and Audi are also expanding their EV portfolios, with BMW clocking a sales increase of 2.7%, and Audi facing a decline.
- Volkswagen's growth in the auto industry is evident, as their core brand outperformed expectations with a 15.2% sales increase in 2024, while Audi, another subsidiary, faced a 14% sales drop.
- The finance world has shown interest in automotive stocks, such as BMW, due to President Trump's trade policy that could potentially result in relaxed tariffs.
- The Volkswagen models Jetta, Atlas, and Tiguan all saw gains, contributing significantly to the brand's improved performance in 2024.
- Investors, influenced by the anticipation following Georgia Meloni's meeting with President Trump, have favorited companies that may benefit from a relaxation in trade policies.
- In contrast, the Mini brand under BMW suffered a significant loss in 2024 due to a model overhaul, but the electric 5 Series and the i5 managed to achieve a 12% surge.
- The technology sector, including the automotive industry, is expected to face impacts from the shifting trends in electric vehicle (EV) sales, with competitors like BMW and Audi expanding their EV portfolios in 2025.
