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      08-22-2018, 09:36 AM   #1
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BMW Supplanted by Suzuki as Profit Margin Leader in Second Quarter

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BMW Supplanted by Suzuki as Profit Margin Leader in Second Quarter
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BMW has been the auto industry's leader in profit margin, but a new report based on second-quarter figures has Suzuki taking over the profit margin crown.

German publication Handelsblatt Global posted this morning: German carmaker BMW is no longer the most profitable in the world, a new EY study of second-quarter business shows. Suzuki has taken pole position with a profit margin of 11.8% while BMW has only 11.4%.

The report does make clear however that, if you take the first two quarters of 2018 together, BMW is still the most profitable automaker.

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      08-22-2018, 09:41 AM   #2
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Dealer: "we are selling this car at a loss"

Me: Yeah, okay.

/s
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      08-22-2018, 09:44 AM   #3
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I thought Porsche was by far the most profitable automaker?
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      08-22-2018, 09:44 AM   #4
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Well, the profit margin for BMW as the manufacturer is not the same profit margin for the dealer, selling you the car for the negotiated price vs their true cost from the manufacturer. But I do agree it would only be in specific circumstances it would be beneficial to the dealer to sell a vehicle at a loss.
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      08-22-2018, 09:59 AM   #5
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      08-22-2018, 10:03 AM   #6
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With Suzuki, I wonder how big a percentage their powersports group makes up of it. While I love the S1000RR on the track, BMW just hasn't done much in racing lately. Suzuki on the other hand is mixing it up with the established incumbents in MotoGP. Which follows the saying, win on Sunday, sell on Monday. While Suzuki hasn't won a GP race yet, they're making a really good show which I can't help but influence their GSX-R sales.
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      08-22-2018, 10:26 AM   #7
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Quote:
Originally Posted by zx10guy View Post
With Suzuki, I wonder how big a percentage their powersports group makes up of it. While I love the S1000RR on the track, BMW just hasn't done much in racing lately. Suzuki on the other hand is mixing it up with the established incumbents in MotoGP. Which follows the saying, win on Sunday, sell on Monday. While Suzuki hasn't won a GP race yet, they're making a really good show which I can't help but influence their GSX-R sales.
This is about cars...yknow Suzuki still makes a ton of cars just not for the US market
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      08-22-2018, 10:29 AM   #8
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Quote:
Originally Posted by 10" View Post
I thought Porsche was by far the most profitable automaker?
Porsche as a brand is, but Porsche AG is owned and part of the Volkswagen Auto Group umbrella. I believe this is a comparison of individual public companies.

Although Ferrari is public and has a much higher profit margin than 11% so I have no idea what’s going on haha.

Link: https://www.bloomberg.com/news/artic...gine-supercars
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      08-22-2018, 10:45 AM   #9
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Surprising at first, but on second thought Suzuki has been making good cars lately. They have revamped their image and modernised the looks of their cars inside and out. Also for cheap 4x4 vehicles those are just among the best you can get. I'm speaking for Central Europe ofcourse. But I would've never said they have such a great profit margin.
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      08-22-2018, 10:53 AM   #10
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Quote:
Originally Posted by Mahzari View Post
Quote:
Originally Posted by 10" View Post
I thought Porsche was by far the most profitable automaker?
Porsche as a brand is, but Porsche AG is owned and part of the Volkswagen Auto Group umbrella. I believe this is a comparison of individual public companies.

Although Ferrari is public and has a much higher profit margin than 11% so I have no idea what's going on haha.

Link: https://www.bloomberg.com/news/artic...gine-supercars
Take your own explanation to me and substitute Fiat and you have your explanation about Ferrari
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      08-22-2018, 11:48 AM   #11
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Quote:
Originally Posted by Slickz View Post
Well, the profit margin for BMW as the manufacturer is not the same profit margin for the dealer, selling you the car for the negotiated price vs their true cost from the manufacturer. But I do agree it would only be in specific circumstances it would be beneficial to the dealer to sell a vehicle at a loss.
I was kidding, hence the "/s" comment which is internet speak for sarcasm.
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      08-22-2018, 12:04 PM   #12
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Quote:
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This is about cars...yknow Suzuki still makes a ton of cars just not for the US market
Yes. But both Suzuki and BMW have their powersports divisions which add to the overall corporate bottom line. This is why I said I wonder how much of the powersports division makes up their over all revenue and profits. With powersports, the discounting tends to be less aggressive than with cars hence my correlation in thinking the powersports division is helping bolster their overall profit numbers.
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      08-22-2018, 12:10 PM   #13
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Well that's interesting, to say the least...
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      08-22-2018, 01:23 PM   #14
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Quote:
Originally Posted by zx10guy View Post
Yes. But both Suzuki and BMW have their powersports divisions which add to the overall corporate bottom line. This is why I said I wonder how much of the powersports division makes up their over all revenue and profits. With powersports, the discounting tends to be less aggressive than with cars hence my correlation in thinking the powersports division is helping bolster their overall profit numbers.
The key word in the release posted by Jason is 'automaker'.

I don't think this includes BMW Motorrad -- which operates as a separate company in much the same way that Ferrari operates separate from Fiat -- nor does it include Suzuki motorcycles -- which is NOT operated as a separate company by Suzuki. To be inclusive of those would skew the results.

Suzuki makes a ton of money because of volume, rental fleets, low labor costs, a narrow product range (i.e., no 'luxury marque', etc.) and a R&D/model cycle that's much longer than most other auto manufacturers.
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      08-22-2018, 02:32 PM   #15
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Quote:
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Take your own explanation to me and substitute Fiat and you have your explanation about Ferrari
FIAT spun out Ferrari and now it is a separate public company with the ticker symbol RACE.
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      08-22-2018, 03:08 PM   #16
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Quote:
Originally Posted by 10" View Post
Take your own explanation to me and substitute Fiat and you have your explanation about Ferrari
Ferrari is independently owned, so no.
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      08-22-2018, 04:56 PM   #17
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Quote:
Originally Posted by Ristau View Post
Quote:
Originally Posted by 10" View Post
Take your own explanation to me and substitute Fiat and you have your explanation about Ferrari
Ferrari is independently owned, so no.
Quote:
Originally Posted by Mahzari View Post
Quote:
Originally Posted by 10" View Post
Take your own explanation to me and substitute Fiat and you have your explanation about Ferrari
FIAT spun out Ferrari and now it is a separate public company with the ticker symbol RACE.
Ahhh didn't realize that! Thank you
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      08-22-2018, 05:10 PM   #18
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Good to know Suzuki is still around
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      08-22-2018, 05:13 PM   #19
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I thought Suzuki was owned by Hyundai.
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      08-22-2018, 06:55 PM   #20
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Quote:
Originally Posted by zx10guy View Post
With Suzuki, I wonder how big a percentage their powersports group makes up of it. While I love the S1000RR on the track, BMW just hasn't done much in racing lately. Suzuki on the other hand is mixing it up with the established incumbents in MotoGP. Which follows the saying, win on Sunday, sell on Monday. While Suzuki hasn't won a GP race yet, they're making a really good show which I can't help but influence their GSX-R sales.
Maverick won one in Silverstone two years ago. Then again, they had engine concessions back then. I don't see anything exciting happening with Rins or Mir in the coming seasons. I see your point though.
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      08-22-2018, 06:59 PM   #21
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Quote:
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Ferrari is independently owned, so no.
That's sad. That means great collaborations like the Alfa Romeo Guilia Quadrifoglio won't be coming out anymore.
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      08-22-2018, 07:52 PM   #22
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Quote:
Originally Posted by Mahzari View Post
FIAT spun out Ferrari and now it is a separate public company with the ticker symbol RACE.
Their annual report is a fascinating read. Love how they report many of their results in terms of V8s and V12s. Also surprised by revenues generated by sales other than cars. Here’s a link for those that are interest...

https://www.sec.gov/Archives/edgar/d...-f12312017.htm
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