Now, the corona pandemic is forcing the auto makers to speak of other topics: revenue dips, short-time working, and liquidity management. So bad is the Outlook for the auto stock today, it is already a delicate light at the end of the tunnel.
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plummeting sales figures flexibility
require, According to BMW-statements from the beginning of this week, are currently closed, around 80 percent of the car dealers in the USA and around 70 per cent of all retailers in Europe. The power is now truly no hope for boom in car sales.
How bad can it be on the sales page in fact is already evident in the reported sales figures. BMW reported up to and including March, a worldwide decline in passenger Car sales, which was up almost 21 percent. Even if the major challenges are imminent in Europe and the USA, this decline in all the regions. The same image also VW (up to and including February -14 percent) and Daimler (up to and including February -9 percent) returns. Wherein in the case of Daimler and Volkswagen in these Figures is probably the worst month of March is not included. Volkswagen Vz. 117,48 EUR +1,10 (+0,95%) Xetra
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The plummeting sales figures of a burden on the car makers particularly hard. Much of the cost can not be adjusted so easily to fall sharply at the end of the paragraph. Currently, all attempts to increase this flexibility. Short-time work and factory closures, only the public most effective measures are closing in.
the liquidity situation of The car manufacturer makes hope
The flexible adaptation of production to the new market situation has a large target, you will receive payment capable to. That is exactly what the corporate leaders mean when they speak of it, to manage their liquidity now considerably more stringent.
you Look at the balance sheets of Daimler , BMW and Volkswagen , are as all the three car makers, at least in the industrial business, so without the connected lending and leasing banks, quite neat: Daimler EUR 11 billion, BMW is 17.5 billion euros, and Volkswagen 21 billion euros. Daimler 28,30 EUR +0,16 (+0,57%) Xetra
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of Course, the financial liabilities of the mountains in the affiliated banks is also a certain degree of risk. Finally, significantly more loans than in economically good times, to burst in an economically severe times. But such a contract, bursting the car manufacturers still have the security of stored vehicles. And in difficult economic times, booming used car market offers a great risk-hedging.
in Addition, the corporations have generous credit lines in the hindquarters. These can be pulled out when needed. In the case of Daimler, this line of credit amounted to 11 billion Euro. Recently it was extended for a further 12 billion euros. For many, this may be the first indication of a larger difficulty for me, however, is rather a sign of foresighted planning. Because today’s conditions are likely to be significantly cheaper than if you would have needed an additional line of credit rather yesterday than today.
China is from the problem child to bearer of hope
the First positive news that these credit lines are not used, but already in China. BMW writes to the beginning of this week of strong new orders and the first signs of a recovery in this Region. While we looked at some weeks ago, with anxious eyes on the China-dependency of the German car maker, is turning into this Region now hope for, and the possible blueprint for the Rest of the world.
All of this is perhaps still too early to be in the German car share in cheering mood to break out, but a little hope that Germany’s flagship industry is soon back on the known issues for the future can talk.
The post “Daimler, VW and BMW So bad for the German car share” appeared first on Motley Fool Germany.
Disclaimer: Sven owns shares of BMW and Daimler. The Motley Fool recommends BMW.
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