Neil Winton

Ferrari's latest financial results signal a strong recovery, ending investor concerns that its glory days were over. The company reported second-quarter adjusted earnings of €755 million, significantly beating analyst forecasts, and raised its 2026 guidance to at least €2.97 billion. This positive news has boosted share prices, which had been in a slump due to a previous forecast and worries about its first electric vehicle, the Luce. Despite initial skepticism and widespread EV losses among other carmakers, Ferrari reportedly met its 2026 sales target for the high-priced Luce ahead of schedule. Analysts like Berenberg Bank and Bernstein are now bullish, citing robust demand for new models, strong price/mix, personalization, and an order book filled through next year. They foresee double-digit earnings growth for 2027, driven by new product launches and supercar volumes, though one expert remains cautious about the long-term strength of the brand.

If only the European Union could have read the final chapter first, it might have realized its aim to force a new electric vehicle monopoly on its unwilling citizens required small EVs to excite buyers.

Struggling iconic British luxury sports carmaker Aston Martin's recovery plan is teetering and the latest financial numbers show losses widening and debt burgeoning, while some bondholders are unhappy with the terms of a recent refinancing.

Volkswagen said operating profits dived 9.5% in the second quarter while sales for 2026 would slip by 3%, reversing an earlier positive prediction.

Chinese sedans and SUV brands, regardless of production location, edged out Japanese brands in Western Europe during the second quarter for the first time, while during the first six months local brands lost almost three percentage points of market share, led by the Volkswagen brand, according to Schmidt Automotive Research.

European auto sales will rise a bit in 2026. But Chinese sales will accelerate, and Germany, once the unassailable global auto industry leader, is in the crosshairs.

Stellantis shares are down more than 55%. Investors expect action to counter Chinese competition, EV missteps and too many brands. The Leapmotor EV deal is lauded though.

“Kicking the can down the road” is a metaphor that might have been designed to describe Volkswagen‘s 89-year corporate history. VW is facing another crisis which demands it reform itself and behave like a normal shareholder-owned company. Despite the noise, don't expect radical change.

It's no surprise that Chinese auto imports pose an existential threat to even Europe's most iconic brands. The trouble is, the threat is moving into a higher gear, while European Union actions to mitigate this disaster seem lost in its interminable political process.

Accelerating sales in Europe will please car dealers but might threaten automakers, as EV sales spurted in the first half of 2026 including an expanding Chinese element.