Automotive industry: bad situation – huge profits

Lots of auto companies like Mercedes are earning a profit. Having said that, authorities alert about the dangers. In China, product sales are no for a longer time sleek.

In accordance to consulting organization EY, the circumstance in the automotive field is much smaller sized than the essential figures from brands suggest. The sale of new cars and trucks in China arrives underneath stress due to the fact of the closure of the corona there. This was claimed by EY (Ernst & Young) in a review on the company data of the 16 biggest automotive companies in the entire world. Amid them are Volkswagen, Mercedes-Benz and BMW.

China is the premier industry for a few German teams. “The end of China’s authoritarian corona policy has not yet been introduced, so there is a hazard of more revenue decrease in the coming months,” warned EY sector advisor Peter Fuss. In accordance to China business figures, car sales to individuals diminished by 35.7 per cent in April in comparison to the identical month previous 12 months.

On ordinary, main makers marketed less vehicles globally from January to the close of March when compared to the same period of time past year. But corporations typically earned better profits, as research showed. In phrases of return on revenue, which compares gross sales and working revenue, the American electrical motor vehicle manufacturer Tesla was evidently forward of 19.2 %. In the record of big corporations, Mercedes-Benz follows with 15 percent, Volkswagen with 13.3 per cent and BMW with 10.9 %.

“The very clear quantities for the very first quarter are outstanding, but the realities in the automotive sector are pretty stressing,” summed up the head of the Western European mobility device at EY, Constantin Gall. Over all, makers of luxurious autos benefit from a distinctive condition: Contemplating the deficiency of chips, semiconductors are set up mainly in big and high-priced automobiles. At the similar time, there is no reduction in prices, as demand from customers is substantial. Nonetheless, in accordance to Gall, the maximize in income will surpass other companies. (dpa)