It is hard to find a good deal on a German car these days. Most German car stocks, on the other hand, are selling for cents on the dollar.
There are solid reasons for the discrepancy: weakening consumer sentiment, trouble in China, and the ever-mounting cost of catching up with Tesla TSLA 0.46%increase; green up-pointing triangle in electric vehicles. Yet people will always want premium brands, not least in China. There may be more gas left in the tank, particularly for BMW BMW -1.52%decrease; red down-pointing triangle and Mercedes-Benz MBGYY -0.71%decrease; red down-pointing triangle, than many investors seem to think.
Car watchers can expect lots of flashy vehicle previews as IAA Mobility, Germany’s answer to the Detroit auto show, revs up for its grand opening by German President Olaf Scholz on Tuesday. One battleground might be smaller cars: BMW will launch a new generation of its city-car brand Mini on Friday, while Mercedes-Benz plans to reveal a fresh approach to the compact segment Sunday.
Source: WSJ
