FRANKFURT (dpa-AFX) - Investors continue to give German carmakers a wide berth on Tuesday. In an industry environment that was also subdued across Europe, the prices of BMW and Volkswagen fell particularly sharply by up to 1.8 percent, while Mercedes-Benz shares lost 0.9 percent. Those of sports car manufacturer Porsche AG were a positive exception with a rise of just under one percent.

In a study, analyst Patrick Hummel from UBS referred to statements made by Renault boss Luca de Meo, who is also president of the European car manufacturers' association Acea. De Meo had already told the French radio station France Inter at the weekend that if sales of electric cars did not pick up, the industry would face 15 billion euros in fines from the European Union in 2025 due to its climate targets. He is also quoted as saying that sales of electric cars are only progressing half as fast as necessary to meet the targets. The manager therefore appealed for more flexibility, without which such targets would be "very, very dangerous".

According to Berenberg Bank, the fluctuations in the automotive sector are likely to continue. In addition to the approaching EU requirements for electromobility, analyst Romain Gourvil also referred to current car price developments and the EU's trade dispute with China as factors of uncertainty. Volkswagen is emblematic of this with its far-reaching cost-cutting measures, which the Wolfsburg-based company believes are unavoidable. Group CEO Oliver Blume recently described the economic situation as alarming.

The share price charts of car manufacturers have been looking bleak for days. BMW in particular has already lost more than eleven percent of its value since an interim high at the end of August. The shares reached their lowest level since November 2022. Volkswagen's share price has also fallen by around nine percent since the announcement of the cost-cutting plans, which were only briefly well received at the beginning of September, due to growing concerns. The Wolfsburg share price is even at a low since 2020.

As UBS expert Hummel wrote, earnings momentum in the automotive sector is likely to remain negative in the coming quarters, with the exception of tire manufacturers. The recent development of share prices shows that investors are clearly cautiously positioned. He believes that it is still too early to take a more constructive view of the sector.

Mercedes favors Hummel because of expected dividends and share buybacks. For Porsche AG and Stellantis, the earnings outlook for 2025 is the most promising, while for Porsche AG's parent company Volkswagen, he believes 2025 is the worst outlook. VW is feeling the effects of the EU's CO2 guidelines particularly strongly and is also suffering from the negative impact of business in China./tih/men/mis