It looks more and more like a divided Europe. While carmakers Opel, Ford, PSA, Fiat etc. are wailing with pain, German carmakers report expectation-beating profits.
Germany’s Daimler reports an EBIT of €2.24 billion ($2.75 billion) and a net profit of €1.51 billion ($1.86 billion) for the second quarter of 2012. The profits would have been higher without the startup costs for the new A-Class. For the half year, that’s €4.37 billion ($5.36 billion) in EBIT and €2.931 billion ($3.59 billion) after tax.
From Wolfsburg, Volkswagen reports a pre-tax profit of €10.1 billion ($12.4 billion) , and a net profit of €8.8 billion ($10.8 billion) for the first half year.
Why are they doing well when others don’t? “Our strong position in international markets will enable us to outperform the market as a whole, despite the challenging environment,” VW CEO Martin Winterkorn said.