Car Maker Profit Margins

[Xcentric]

Interesting numbers, which are highly variable over time. These are recent. No point other than making highly desirable luxury cars seems to be a pretty good business these days. Not so much for the makers of plebian transport, Toyota being an exception. VW is making about $23,000 on every Porsche sold. Ferrari about $60,000.

Porsche 18%
Ferrari 15%
Audi/Lamborghini 10%
BMW 7.5%
Toyota 7.1%
Daimler 6%
Honda 4.9%
Fiat Chrysler (North America) 4.2%
VW 2.9%
Ford 2.2%
GM 1.9%

 

[Specracer]

Is that fiscal 2014? Be curious to see how that's different for 2015, with F150 not in limbo (MY production change over).

 

[Xcentric]

2014. Numbers from various sources, not all of which identify fiscal vs. calendar year. Also did not break out North America sales except for Chrysler, so it is not really apples to apples.

 

[FENZO]

Besides, 40 gazillion sold x 2.2% > niche x 18%.

It's Mcdonalds vs Ditkas Steakhouse (Ed. Chicago. Beef. Hint)

 

[djs]

I find those Fiat/Chrysler #s very suspect.

 

[Cobrar]

Is that fiscal 2014? Be curious to see how that's different for 2015, with F150 not in limbo (MY production change over).

I don't know his information source, but Ford's margins for FY2014 (or any year) are not only highly variable, but extremely so, across the various regions, and over time (see: business restructurings). For instance North America again in 2014, and has over recent time, enjoyed double digit gross margins. Being a global entity however, you take the bad with the good. South America (Venzuela) and Europe were not a contributor in 2014 and prior - refective of the conditions in their respective markets and related restructurings. Only Ford Credit seems a perennial winner year/year - God bless them. ;-))

 

[Specracer]

No kidding on Ford Credit, but I guess my point, is that the downtime associated with the tooling change order of BY FAR your most important product has for sure not helped North America in 2014.

 

[Cobrar]

Yes, it didn't help in the bigger scheme of things. But the F150 team deserves a huge amount of credit. The changeover had a very small impact to overall results due to carefully planned losses, sell down of 2014 product and a better conversion on the uptake in Dearborn.

I should have quoted my response to the OP who was talking about 'comparative' OE margins. Moreover, Ford is a full line mfgr in much of the world vs. boutique manufacturers like Ferrari. A more fair comparison would have been isolating F150 NA profits vs. Ferrari. I might like Ferarris % profitability, but I'd rather have the Fords $$ on that segment. A bit more bankable, and would work in up or down markets comparatively better than high priced luxury product. ;-))

 

[nota4re]

Buddy of mine bought a GMC Canyon a couple of weeks back from a GMC/Cadillac/Buick/ToysRUs store. Escalade in the showroom. Holy cow - who knew that a duded up Escalade now has an MSRP of almost $100K WTF? My guess is that these units are a wee bit above GM's alleged 1.9% margin.

 

[Xcentric]

Yeah, well, maybe they need to sell a whole lot more tarted-up Escalades to make up for having to recall every car they ever made. Profit is when your revenue is greater than your expenses.

 

[BlackICE]

Uaw

 

[junior]

Wow, a supped up Suburban for $100K.

 

[GTED]

Are these margin %s only from manufacturer's standpoint, i.e., not inclusive of dealer's markup?

 

[Xcentric]

^^^Yes.

 

[StormBringer]

I don't know his information source, but Ford's margins for FY2014 (or any year) are not only highly variable, but extremely so, across the various regions, and over time (see: business restructurings). For instance North America again in 2014, and has over recent time, enjoyed double digit gross margins. Being a global entity however, you take the bad with the good. South America (Venzuela) and Europe were not a contributor in 2014 and prior - refective of the conditions in their respective markets and related restructurings. Only Ford Credit seems a perennial winner year/year - God bless them. ;-))

All the building in China might have kept the global numbers down too.