Record profit for automakers

The world’s biggest automakers continue to post record profits, according to research by auditing and consulting firm EY.

EY has announced the results of its analysis of the January-September financial results of 16 automakers.

Consequently, the improvement in the supply of semiconductors (chips) and the strong demand for luxury vehicles allow automakers to make good profits.

GERMAN MANUFACTURERS AT THE TOP

Both total sales and total profits for 16 companies posted the highest level ever recorded in the third quarter.

In terms of operating profit, Mercedes-Benz ranked first with approximately €5.2 billion, followed by Volkswagen with €4.7 billion. German luxury car maker BMW, on the other hand, ranked fifth with an operating profit of 3.7 billion euros.

HIGH DEMAND FOR LUXURY VEHICLES AS CHIP SUPPLY RECOVERS

“Overall, the third quarter of the year was a dream quarter despite the economic slowdown and a very difficult geopolitical situation for the automotive industry,” said Constantin Gall, Head of EY Western Europe Mobility Division.

It should be noted that German manufacturers increased their sales by 28 percent in the Chinese market compared to the same quarter of the previous year. Mercedes-Benz was the fastest growing brand in China with 67 percent.

INFLATION WARNING TO LARGE VOLUME MANUFACTURERS

According to the research, while the supply of semiconductors, which was a big problem in the Covid-19 epidemic, is recovering, the demand for premium vehicles, in particular, remains high.

In the research, it was predicted that the market, especially for bulk producers, will be under pressure in the future due to high inflation and the loss of purchasing power of a large part of the population in key sales markets. (AA)