Car manufacturers have never been so profitable, while having never sold so few cars!
Paradoxically, component shortages offered them the opportunity to sell less, but more expensively.
They produce the most profitable models as a priority, and customers accept - for now - the price increases.
“Financially, the manufacturers have found a “pricing power” – an ability to drive up prices – that they had lost for twenty years
, observes Laurent Petizon, automotive consultant at AlixPartners.
They stopped the discounts, increased the prices and chose the vehicles they wanted to produce.
The current level of operating margin of the 25 largest manufacturers in the world, with a peak of 12.6%, is exceptional.
It's a record."
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The horizon is darkening for automotive suppliers
Upstream, the suppliers with whom the manufacturers have concluded multi-year contracts do not have the same leeway to raise their prices.
So, for the first time since...
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