Stuttgart Despite the chip crisis, Mercedes-Benz, Toyota, Volkswagen and other international automakers earned significantly more in the past year. The operating profit of the world’s 16 largest car companies climbed by 168 percent year-on-year to a total of around 134 billion euros, as determined by the auditing and consulting company EY.
“Overall, the top car companies managed the semiconductor crisis remarkably well last year – although sales were down for many companies, the profit situation has developed excellently in some cases,” as the EY expert for the mobility sector in Western Europe, Constantin Gall, summed up .
The supply bottleneck for semiconductors and other electronic components has triggered production restrictions across the industry. A quick improvement is not in sight. Gall said the strategy of installing the scarce chips primarily in comparatively expensive cars while limiting discounts has paid off for the manufacturers. “Margins were at record levels in 2021,” said the expert, referring to the profit-to-sales ratio.
The chip crisis hit the German manufacturers in particular, whose sales fell by four percent. Competitors from Japan, on the other hand, increased by five percent, and South Korea by as much as seven percent. The industry is also struggling with problems this year, said EY partner Peter Fuss.
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“On the one hand, the lack of semiconductors and other preliminary products and raw materials is hampering production. On the other hand, the war in the Ukraine is an enormous burden for the industry.” In view of these uncertainties, forecasts for this year are hardly possible. The industry is driving on sight – “and new car prices are more likely to rise than fall,” said the expert.
These were the most profitable automakers in 2021.
10th place – Honda – EBIT margin: 6.2 percent
The Japanese are traditionally particularly strong in the US market and were able to increase sales there by ten percent to 1.46 million vehicles in 2021. With just 60,000 cars, they hardly play a role on the European market.
Financially, however, 2021 was a great success for Honda. Profits have doubled to 6.8 billion euros, sales increased by ten percent to 110 billion euros. With a profit of 1624 euros per car, however, there is still room for improvement.
9th place – Kia – EBIT margin: 7.3 percent
The Koreans have had an extremely successful year. While sales increased by 18 percent to the equivalent of 51.6 billion euros, profits even increased by 145 percent to 3.74 billion euros. Especially in the USA, Kia can buck the trend and increase sales to 701,000 cars. Despite ongoing problems in the Chinese market, sales in 2021 were 2.96 million cars. Kia earned 1263 euros per car sold.
8th place – Volkswagen – EBIT margin: 7.7 percent
The largest car manufacturer in Europe was able to increase profits significantly to 19.27 billion euros, making it the second-highest profit in absolute terms. But the twelve-brand empire earns about 2321 euros per car sold – significantly less than many competitors. Due to the lack of chips, 8.3 million vehicles were sold across the group in 2021.
In China and Europe in particular, sales have fallen significantly. In the USA, VW plays a supporting role with 648,000 vehicles sold. Overall, however, sales increased by 12 percent to 250.2 billion euros, because in times of chip shortages, high-priced models were mainly built by Porsche and Audi.
Volkswagen increases profits – but others work more profitably.
(Photo: imago images/Eibner)
7th place – Ford – EBIT margin: 7.8 percent
The austerity course of the Americans is slowly having an effect: After a loss in the previous year, Ford is profitable again and posted a profit of 8.95 billion euros. Sales grew by around seven percent to 115.3 billion euros. But that cannot hide the fact that Ford has lost a lot of ground in sales. In Europe, sales fell by 22 percent to 477,000 cars. Even in the core US market, Ford has only sold 1.9 million cars. Worldwide there were 3.94 million cars – about six percent less than in the previous year. Ford makes a profit of 2272 euros per car.
6th place – General Motors – EBIT margin: 9 percent
GM boss Mary Barra wants to focus the group more on profit. So far, however, their successes have been modest. Despite the sharp drop in sales, General Motors was able to increase profits by 34 percent to 9.67 billion euros. However, the four percent increase in sales was significantly lower than that of the competition. The profit of 1538 euros per car is also below average in the industry comparison.
The principle of withdrawal also has consequences for sales: With the sale of Opel and Vauxhall, the company has almost completely withdrawn from Europe. With around 6.29 million cars sold worldwide, the top group has long since left. In 2021, too, sales fell by eight percent.
5th place – Toyota – EBIT margin: 10.4 percent
In absolute figures, the world market leader is way ahead in almost all categories. Sales increased by ten percent to 10.5 million vehicles. Sales increased by 17 percent to 238.4 billion euros and profits even increased by 74 percent to 24.8 billion euros.
In addition, Toyota is one of the few companies that has been able to sell more cars in all regions of the world. However: In terms of profitability, some competitors have passed in 2021. Toyota earned 2364 euros per vehicle.
The Japanese are no longer the most profitable volume manufacturer.
(Photo: IMAGO/NurPhoto)
4th place – Stellantis – EBIT margin: 10.6 percent
Under Carlos Tavares, the car company, which was formed from PSA (Peugeot-Citroen) and FCA (Fiat-Chrysler), knows only one requirement: efficiency and speed. The parent company of Opel has thus succeeded in making its brands extraordinarily profitable. Profit increased by 156 percent to 15.8 billion euros in 2021 – even though sales increased by only a meager percent to 149 billion euros.
And although Stellantis plays almost no role in the important Chinese market with just 125,000 vehicles sold and sales in both Europe and the USA have fallen slightly, Stellantis was able to increase profit per car sold to 2673 euros – more than Toyota or Volkswagen .
3rd place – Mercedes-Benz – EBIT margin: 12 percent
Ola Källenius’ luxury strategy is more than consistent. He abolished high discounts for taxi drivers, shrunk the loss-making mobility services and with the spin-off of Daimler Trucks he completely aligned the company to lucrative premium cars. The result: an increase in profits of 163 percent to 16 billion euros, an increase in sales of 10 percent to 133.9 billion euros. Mercedes earned a total of 6879 euros per car in 2021 – more than any other manufacturer.
Mercedes, especially in Europe, has apparently concentrated particularly on the models that make a particularly large profit. Here, sales fell by 13 percent to 632,000 cars. Worldwide, Mercedes sales are back by around five percent to 2.33 million cars. Ola Källenius won’t mind.
2nd place – BMW – EBIT margin: 12 percent
The Munich-based company also ended the financial year with a record profit of 13.4 billion euros – a whopping 177 percent more than in the previous year. Sales increased by 12 percent to 111.2 billion euros.
With 2.52 million vehicles sold worldwide, BMW has also increased sales by eight percent and earns an impressive 5313 euros with each car sold – more than twice as much as Volkswagen or Toyota. A small drop of bitterness: Sales in Europe have stagnated recently. BMW was able to record the largest increase in sales in the USA.
1st place – Tesla – EBIT margin 12.1 percent
If you look at the absolute numbers, Tesla currently still plays a subordinate role. What is remarkable, however, is how profitable the company around Elon Musk is now working. Tesla has more than doubled its EBIT margin in just one year and is now the industry leader.
Sales increased by 71 percent to 45.5 billion euros. The profit even increased by 234 percent to 5.5 billion euros. Tesla earns 5895 euros per car sold. And that although the manufacturer with the Model 3 and the Model Y is actually in the middle class. With the opening of the Gigafactory, the models that Tesla sells in Europe in particular should generate even more margin. Tesla sold around 936,000 cars worldwide in 2021 – 87 percent more than in the previous year.
Tesla makes more than twice as much profit per electric car sold as Volkswagen.
(Photo: Getty Images)
With agency material
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