BMW Supplanted by Suzuki as Profit Margin Leader in Second Quarter

Jason · 08-22-2018, 10:36 AM

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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.

Thescout13 · 08-22-2018, 10:41 AM

Dealer: "we are selling this car at a loss"

Me: Yeah, okay.

/s

10" · 08-22-2018, 10:44 AM

I thought Porsche was by far the most profitable automaker?

Slickz · 08-22-2018, 10:44 AM

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.

gds52 · 08-22-2018, 10:59 AM

Wonder why?

zx10guy · 08-22-2018, 11:03 AM

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.

10" · 08-22-2018, 11:26 AM

Quote:

Originally Posted by zx10guy

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

Mahzari · 08-22-2018, 11:29 AM

Quote:

Originally Posted by 10"

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

Majec9-7 · 08-22-2018, 11:45 AM

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.

10" · 08-22-2018, 11:53 AM

Quote:

Originally Posted by Mahzari

Quote:

Originally Posted by 10"

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

Thescout13 · 08-22-2018, 12:48 PM

Quote:

Originally Posted by Slickz

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.

zx10guy · 08-22-2018, 01:04 PM

Quote:

Originally Posted by 10"

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.

raysspl · 08-22-2018, 01:10 PM

Well that's interesting, to say the least...

Viffermike · 08-22-2018, 02:23 PM

Quote:

Originally Posted by zx10guy

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.

Mahzari · 08-22-2018, 03:32 PM

Quote:

Originally Posted by 10"

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.

Ristau · 08-22-2018, 04:08 PM

Quote:

Originally Posted by 10"

Take your own explanation to me and substitute Fiat and you have your explanation about Ferrari

Ferrari is independently owned, so no.

10" · 08-22-2018, 05:56 PM

Quote:

Originally Posted by Ristau

Quote:

Originally Posted by 10"

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

Quote:

Originally Posted by 10"

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

psuibmw · 08-22-2018, 06:10 PM

Good to know Suzuki is still around

DanG · 08-22-2018, 06:13 PM

I thought Suzuki was owned by Hyundai.

VMRWheels · 08-22-2018, 07:55 PM

Quote:

Originally Posted by zx10guy

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.

Z K · 08-22-2018, 07:59 PM

Quote:

Originally Posted by Ristau

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.

Pig Farmer · 08-22-2018, 08:52 PM

Quote:

Originally Posted by Mahzari

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

08-22-2018, 10:36 AM	#1
Jason Administrator 43664 Rep 21,325 Posts Drives: F80 M3 Join Date: Mar 2005 Location: USA iTrader: (0)	BMW Supplanted by Suzuki as Profit Margin Leader in Second Quarter BIMMERPOST NEWS BMW Supplanted by Suzuki as Profit Margin Leader in Second Quarter 29 COMMENTS Tweet 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. __________________ Check on the Latest BMW News Become a fan of Bimmerpost Facebook Follow us on Bimmerpost Twitter Subscribe to Bimmerpost Youtube Channel
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08-22-2018, 10:41 AM	#2
Thescout13 Brigadier General 4992 Rep 4,978 Posts Drives: '20 F80 M3CS, %E2%80%9818 GT3 Join Date: Nov 2013 Location: California iTrader: (0)	Dealer: "we are selling this car at a loss" Me: Yeah, okay. /s __________________ Wife's Car: 2020 X4M Competition, Alpine White on Black Alcantara and Biege Current Car: 2018 F80 M3CS, SMB, DCT, ZEC, MPE Recently Departed: 2020 F87 M2C, LBB, ZEC, 6MT (Euro Delivery Aug. 29, 2019, totaled by an idiot in a Camry who then ran from the scene) Wife's Prior Car: 2018 F80 M3, Yas Marina Blue, DCT, Black 19s, Carbon Structure Anthracite Cloth/Leather Combination, Driving Assistance Package (Euro Delivery Oct. 9, 2017)
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08-22-2018, 10:44 AM	#3
10" Colonel 5108 Rep 2,297 Posts Drives: orange BMW 1M. Join Date: Jun 2018 Location: world iTrader: (0)	I thought Porsche was by far the most profitable automaker? __________________ don't read this. too late...
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08-22-2018, 10:44 AM	#4
Slickz Second Lieutenant 118 Rep 256 Posts Drives: 2020 F82 M4 Join Date: Dec 2016 Location: Chicago, IL iTrader: (0)	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. __________________ 2011 X5 xDrive 50i - retired 2016 340i xDrive - retired 2020 M4 Coupe
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08-22-2018, 10:59 AM	#5
gds52 Colonel 887 Rep 2,724 Posts Drives: BMW Z4M Coupe, BMW 328i E93 Co Join Date: Oct 2011 Location: NJ iTrader: (0)	Wonder why?
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08-22-2018, 11:45 AM	#9
Majec9-7 Enlisted Member 27 Rep 42 Posts Drives: '07 E87 116i Join Date: Dec 2014 Location: Near the twisties iTrader: (0)	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, 01:10 PM	#13
raysspl Brigadier General 992 Rep 3,000 Posts Drives: walking, bicycle, & bus Join Date: Jan 2015 Location: SoCal iTrader: (0)	Well that's interesting, to say the least... __________________ re
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08-22-2018, 06:10 PM	#18
psuibmw Brigadier General 3642 Rep 3,130 Posts Drives: G06/G20/F30/F15/F10/E90 Join Date: Feb 2011 Location: Baltimore, MD iTrader: (0) Garage List 2023 BMWM2 [10.00] 2018 BMW 320xi [9.67] 2022 BMW [9.63]	Good to know Suzuki is still around
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08-22-2018, 06:13 PM	#19
DanG Major General 11480 Rep 7,156 Posts Drives: 2018 M2 AW DCT Join Date: Aug 2012 Location: Seattle, WA iTrader: (1) Garage List 2018 BMW M2 [8.01]	I thought Suzuki was owned by Hyundai.
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