Europe's financial situation is, well, bad. So no one was surprised to see analysts' low expectations for German carmakers. But the numbers are out, and whaddya know? Three German auto companies have reported better results than predicted.
BMW reported this week that its first quarter profit rose 19 percent. BMW said 1-Series sales jumped 20 percent, which helped the company deliver a record total of 425,528 vehicles in the first quarter.

Last week, Daimler and Volkswagen blew past analysts' expectations with VW increasing profit 10 percent and Daimler making 4.9 percent more that last year's first quarter.

Much of the profit and sales boost is due to growing popularity of German models in U.S. and China. A couple of analysts quoted in a Bloomberg report are split on what the future holds. One says he expects BMW and VW to raise their second quarter forecasts. Another sees China's market cooling off and gives BMW a neutral rating while rating VW and Daimler as good buys. So far this year automotive companies (including suppliers) are the best performing stocks in Europe.


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  • 26 Comments
      Trent
      • 2 Years Ago
      Its all relative people. If you make $240k or more a year what is a $60k car? If you only make $50k a year and you buy a $20k car then you are spending much more as a percentage. When I was younger and broke I had to have a new leased BMW or Mercedes every 2-3 years. As I get older and make much more I like to buy 3 your old cars for cash or 0% interest. I would be curious to see if more people are leasing or buying these German cars?
      ferps
      • 2 Years Ago
      they share a currency with nations that are in dire straits and dragging the value of their currency down. this makes German exports more competitive.
        1guyin10
        • 2 Years Ago
        @ferps
        All the German marks except Opel make a large percentage of their cars outside Germany and are moving more and more out all the time. They are not tied to the German economy like they once were.
      bazzz
      • 2 Years Ago
      No, europe's financial situation is NOT bad. It will not be "more" true if the american press writes that a thousand times a day. It's countries like finland/sweden/denmark/norway/netherlands/austria and _especially_ germany (because it's the biggest economy here) that are experiencing a very solid economy with very solid growth and good overall numbers. So: there are countries in europe that are suffering, but many others are doing great.
        Lachmund
        • 2 Years Ago
        @bazzz
        it's funny american call europe's economy bad when they just got out of trouble and there is still no real light to be seen
        sparrk
        • 2 Years Ago
        @bazzz
        what do you mean countries in Europe ? Europe is a country. Like Africa and such. /s
      joe shmoe
      • 2 Years Ago
      how do "analysts" come up with their predictions ? do they pull them out of their asses ? it seems that way.
      Aussie Aspie
      • 2 Years Ago
      Every time a country's currency loses value against that of its export markets it exports more goods, and Germany is one of the world's biggest exporters, in dollar terms. Should we really be surprised they're making a killing...by forcing down the value of the Euro, Italy, Greece, Spain etc are doing Germany an enormous favour, and - provided those economies don't fall over completely - will continue to do so.
        bazzz
        • 2 Years Ago
        @Aussie Aspie
        Germans have been forced into the euro in exchange for reunification (ask the french/uk leaders of that time about it). They never wanted the euro, but dealt with it. Now they're successful (because they prepared themselves in the past 10 years) - and still it's their fault? WTF? No one "forced" greek, spain, portugal, italy etc. to have a weak economy, they could've been exporting nations too.
          KaiserWilhelm
          • 2 Years Ago
          @bazzz
          The lazy southern europeans are too concerned with fornication and drinking wine, why should they have to work for anything?!!?
      Worx2749
      • 2 Years Ago
      Big divide between Southern and Northern Europe, isn't there, when it comes to financial health? Misleading to lump them all together although they do share a common currency, which may be the biggest problem.
      tributetodrive
      • 2 Years Ago
      Good for them, they make great cars and deserve it. More often then not they are drivers cars.
      stclair5211
      • 2 Years Ago
      The one series is the definition of overpriced.
      adam1keith1980
      • 2 Years Ago
      Overpriced cars. Overpriced maintenance and services at dealerships. No surprises there.
      Jeff Zekas
      • 2 Years Ago
      "Great cars"? Well, if your idea of "great" is a vehicle that needs $3,000 to $4,000 a year in maintenance, has simple parts like window regulators breaking on a regular basis, and is has a bloated MSRP that reflects the name status rather than the quality, then, yes, I suppose these are "great" cars...
        Spellchecker
        • 2 Years Ago
        @Jeff Zekas
        I am from Germany and my family has naturally driven German cars for decades. And we've never had to spend a load of money on major repairs, even when the cars run out of warranty. That goes for all the Audi and Mercedes' we've owned and my current BMW 118i. We keep our cars for 10+ years on average and put on about 200,000-250,000 km on them. No major issues whatsoever.
        Donny Hoover
        • 2 Years Ago
        @Jeff Zekas
        At first I thought I paid a small bit too much for my Volkswagen. Then I started to enjoy using all of the nice features that came with it and have since decided I'm glad I spent the extra and didn't just get a cheapo economy car. The thing is just so comfortable and nice to be in. Also, the cost of maintenance is nowhere near $3000 bucks a year. It is nothing for 3 years and even after that, I get free oil changes, inspections and engine replacements for life from the dealer. It gets a great reliability rating from pretty much every study that has ever been done and it has a diesel engine known to go 300k miles without a problem. I guess I'll take my chances after the warranty runs out but I doubt anything will go badly enough that I can't fix it myself, even on a notoriously hard to work on German car.
        wanderlust
        • 2 Years Ago
        @Jeff Zekas
        U mad bro?
      Leet
      • 2 Years Ago
      Its no surprise. The global recession/depression has not affected the rich. They can still buy whatever they please, be it a Porsche, Audi, BMW, or Mercedes-Benz.
      Abdul
      • 2 Years Ago
      That's something good, we don't want to lose another car brand anytime soon!
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