Automotive industry: bad situation – huge profits

Semiconductors are at present mostly mounted in high priced designs with superior molding.
© dpa

Lots of car or truck suppliers like Mercedes are earning a revenue. On the other hand, gurus warn about the risks. In China, sales are no longer sleek.

In accordance to consulting agency EY, the situation in the automotive business is a lot smaller than the important figures from brands propose. The sale of new autos in China arrives beneath force because of the closure of the corona there. This was noted by EY (Ernst & Youthful) in a study on the organization statistics of the 16 major automotive providers in the planet. Among them are Volkswagen, Mercedes-Benz and BMW.

China is the premier market place for a few German teams. “The stop of China’s authoritarian corona policy has not however been declared, so there is a danger of further income decrease in the coming months,” warned EY market guide Peter Fuss. According to China marketplace figures, auto gross sales to consumers lessened by 35.7 p.c in April compared to the exact month final 12 months.

On common, major producers marketed fewer cars and trucks around the globe from January to the stop of March in comparison to the very same period past calendar year. But corporations usually acquired better earnings, as investigate showed. In terms of return on gross sales, which compares sales and operating earnings, the American electric car producer Tesla was clearly forward of 19.2 %. In the listing of main corporations, Mercedes-Benz follows with 15 %, Volkswagen with 13.3 p.c and BMW with 10.9 per cent.

“The obvious figures for the to start with quarter are exceptional, but the realities in the automotive market are very worrying,” summed up the head of the Western European mobility unit at EY, Constantin Gall. Over all, suppliers of luxury autos reward from a exceptional predicament: Taking into consideration the deficiency of chips, semiconductors are mounted generally in big and expensive cars and trucks. At the very same time, there is no reduction in prices, as demand from customers is higher. Even so, according to Gall, the improve in gains will surpass other providers. (dpa)