Profitable car manufacturers - hillman

This article could be interesting to BRs

http://www.telegraph.co.uk/motoring/columnists/mike-rutherford/9236338/Mr-Money-the-most-profitable-car-companies.html

Profitable car manufacturers - colinh

Seemed a shame that Rutherford didn't do some further research and work out the profit per car for each manufacturer. For example VW group made 8,361,294 vehicles last year so their profit per vehicle was £2,550 approx; whilst Ford produced 5.5 million in 2010 (latest figure) which implies an average profit of £3,700 approx.

Profitable car manufacturers - Avant

Mike Rutherford says "Ford's retail prices are way too high and I've no doubt that it's this premium pricing policy that has enabled Ford to get so surprisingly rich. But I also have to concede that since consumers are seemingly happy to pay these prices, Ford can hardly be blamed for charging them."

Mike Rutherford no doubt knows well, but didn't mention, that most of Ford's sales are to fleet buyers, who demand discounts - hence the high list prices. But as always, the right price is what some other poor sap will pay.

I still wouldn't buy a Ford new as they depreciate too fast - a result of oversupply rather than anything wrong with the products.


Profitable car manufacturers - Auristocrat

Interesting that the Japanese companies such as Honda and Toyota, made reasonable profits despite having their production badly affected firstly by the Japanese tsunami, and secondly, by the floods in countires like Thailand.

For example, the Honda plant at Swindon had its production halved from April 2011, due to a shortage of parts coming from Japan. They only returned to full production on 19th December 2011.

Profitable car manufacturers - sb10

New cars are like houses,far too expensive for what they are,but all the time people must have a car the prices wont drop which IMO they should do,there is hardly any human work involved in a car now so although R&D is costly the amount of motors knocked off the production line should make them cheaper.

Profitable car manufacturers - balleballe

New cars are not too expensive for what they are, IMO

Compare new prices now to 5-10 years ago; you'll find they have remained about the same

Because the general public have this perception though - that's why you find manufacturers cutting corners with certain things

Profitable car manufacturers - sb10

All manufacturers cut corners where they can to get the best possible profit,they call it making a car more efficient, but where they can save money and get away with it,ie it doesnt cause problems they will do it.

Problem comes when not enough goes into researching what can go wrong for any cost cutting they do,like parts failure,or more likely a fault is built in to make money on IMO only that is

Profitable car manufacturers - balleballe

Yes all manufacturers cut corners, I agree.

Lets take a golf for example. In 5 years the prices have stayed pretty much the same.

So if the manufacturing price stayed the same; they are absorbing the cost. In order for their profit margins to stay the same - the price of manufacturing has to come down - so they cut more corners

Profitable car manufacturers - Leif

Yes all manufacturers cut corners, I agree.

Lets take a golf for example. In 5 years the prices have stayed pretty much the same.

So if the manufacturing price stayed the same; they are absorbing the cost. In order for their profit margins to stay the same - the price of manufacturing has to come down - so they cut more corners

Not necessarily. Manufacturers are consolidating, with for example Volkswagen Group (VAG) consisting of many brands. So you now get essentially the same car sold under multiple brand names with minor changes, reducing development costs. Also VAG, and I assume others, are sharing as many components across cars as possible. They talk about a common floor pan, with changes made to suit each model, further reducing costs. And it is not uncommon for separate companies to collaborate on a car, such as Fiat (500) and Ford (Ka).

As far as I can tell the VW Up spanks the old style Ford Ka in all aspects, except for resemblance to a teapot, and yet the new non discounted Up price is the same as the heavily discounted Ford Ka price from 10 years ago, assuming ~3% inflation.