Great and, thus, more expensive cars bring the highest profit margins – so an old rule of thumb in the auto industry. Even smaller vehicles can turn high profits, shows, of all things, a manufacturer from China.
The Chinese car maker Geely is the industry expert Ferdinand Dudenhöffer of the “profitability-Star of the auto industry”. Although the website Geely-vehicle cost only 9529 Euro, of the company were 14.4 percent of sales as profit before interest and taxes. This is far more than BMW, Toyota, VW, PSA, Opel or other players in the industry.
Geely sold in the first half of 766.630 new car – 99 percent of them in China. “Also contributes to the good margin in the case of Geely, because to have better prices in China than in other markets to enforce,” said Dudenhöffer in a study.
VW moves to significantly lower margins
The VW group, the largest car manufacturer in the world, came to a profit margin of 8.2 percent in the car business. Geely is part of the Zhejiang Geely Holding, which also includes Volvo Cars, London EV Taxi, Lotus, and ten percent of Daimler shares.
Much of the success of Geely come from the Volvo-developed compact car platform, said Dudenhöffer. All of the platform, Geely also the Malaysian car maker Proton that belongs to him is also half.
“What is Ferdinand Piëch implemented from 1993 with its platform strategy at Volkswagen and the modern VW group created after the Geely-the main shareholder and founder Li Shufu in a certain way,” said Dudenhöffer. The Chinese are going to be important players in the global auto market.
ul/bea (dpa)