In the profit-margin game, BMW has long sat atop other premium brands. But, new analysis from Ernst & Young shows the German luxury maker no longer makes the highest profit margins any longer.
The top dog is actually Suzuki, believe it or not. But we’re talking profit margins. Suzuki doesn’t actually make more money on each car sold than BMW, it just happens to make a higher percentage of profit on its operations at 11.8 percent to BMW’s 11.4. What does this have to do with anything?
In the average-transaction price game, Cadillac actually overshadows BMW. In January 2018, General Motors’ luxury brand clocked the second-highest ATPs in the industry, second only to Mercedes-Benz. Cadillac’s ATPs hover around $54,000 per car sold.
The lofty figure is absolutely thanks to the 2018 Cadillac Escalade, which sells on average for $80,000 to $90,000. In the profit margin sector, the study shows that General Motors trails other major automakers in ninth place, but bests Fiat-Chrysler Automobiles and Ford.
Comments
I heard on the news that BMW will increase prices on most of their cars, especially sedans. So for all those silly fools that still think “imports are better”, go and buy a GM or Ford sedan, save money, and help our U.S. economy. Higher import prices only help the foreign brands.
Not surprised. BMW already did this recently, increasing their prices by 20% to boost their “prestige” after they determined there were “too many” BMW’s on the road. The idea was to sell fewer for more money. MINI is also over-priced, as much fun as they are to drive. Not interested!
That’s a New Road for BMW
Second-quarter profit dropped 42 per cent from last year because of pending sales of Opel and Vauxhall to French automaker PSA Group.
https://www.msn.com/en-in/autos/photos/the-20-most-profitable-car-manufacturers/ss-AAq36pf#image=11