FCAU - Why Shares of the German Automakers Are Getting Pounded Today
Shares of German automakers BMW (OTC: BAMXF) (OTC: BMWYY), Mercedes-Benz parent Daimler (OTC: DMLRY), and Volkswagen (OTC: VWAGY) were all under heavy selling pressure at midday on Monday, as investors contemplate the growing likelihood that auto production in Europe will be suspended for at least several weeks.
As of noon EDT, BMW's shares were down about 11.1% from Friday's closing price, Daimler's were down about 14.7%, and Volkswagen's were down 10%.
Simply put, measures put in place by governments in response to the COVID-19 pandemic look increasingly likely to shut down auto production (and sales) in Europe and the United States for an extended period.