Shocking? Wait till the end of this article. I read a Fiat Group report that outlines the state of the automotive industry in 2019, and will highlight the key points of the report below (so you don’t have to read that entire thing).
Because of Ferrari’s high profit margins – €86,000 (SGD 133,000) which is a 23.2% margin on each car sold – here’s a chart of how many cars each manufacturer would have to sell, to make the same amount Ferrari makes from just selling one car.
What’s more impressive is that Ferrari achieved this even without having an SUV in their lineup – unlike most other manufacturers capitalizing on the SUV craze. With an SUV – my guess is that they would perform even better.
According to the report, Ferrari’s quick adoption of new technologies, ability to adapt to changes in the market and their impressive marketing department, allowed Ferrari to successfully navigate the tough period.
I would be keen to see the profit margins of Ferrari’s arguably biggest competitor, Lamborghini.
1. 29% of global car sales were in China
This means that for big manufacturers like VW Group, Toyota, GM etc. – any changes or downturns in the Chinese economy will have a huge impact on them.
2. Volkswagen group is the biggest carmaker in the world by units sold AND revenue
VW Group reported a revenue of €252.6 billion, (SGD 389.89 billion) in 2019, compared to €250.8 billion (SGD 387.72 billion) posted by Toyota. These 2 figures are higher than their 2018 figures – due to higher deliveries, a better price mix and higher levels of income from non-automotive activities.
3. But, Toyota is the biggest carmaker in the world by operating profits – €1,976 (SGD 3,055)
This is ahead of Volkswagen and all of its Japanese rivals (with the exception of Isuzu)
4. Tesla loses €168 (SGD 260) for each car sold
Tesla remains an outlier, as they run on a different business model to many of its competitors. The introduction of the Tesla Model 3 helped the brand to expand its global presence and increase unit sales.
However, as it is a cheaper car than the other Tesla models, revenue did not grow to similar levels. Tesla is still in an expansion phase, burning money in order to grow the business. This explains its 2019 operational loss of €61.6 million – which means they have lost €168 for each car sold
Fiat World Group Report’s Conclusion :
We forecast that the industry won’t see green figures this year. The global pandemic is causing more trouble than expected and many OEMs will struggle to end the year with cash in their pockets. If the scenario was complex in 2019, this year is catastrophic. In addition to this, carmakers operating in Europe face incoming penalties for excess of emissions.