Unpredictable! How Much Do Automakers win?

Due to the large number of car makers and the increasing competition among them, all car makers are working to spend a lot of money on the process of developing new technologies and innovative that will distinguish their cars from other cars.

 

Do you think that car manufacturers spend all this money in planning, research, studies and experimentation for a few financial returns? of course not! The development of their cars is an investment to return them with much more than the amount invested.

 

 

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According to research conducted by Bloomberg on the earnings of carmakers for 2016, the profits were huge:

 

1. Mercedes-Benz:

The profits of the German Mercedes-Benz on each new sold car almost 5 thousand US dollars!

 

2. Porsche:

As for the profits achieved by the Porsche, a German company, are almost 17 thousand dollars for each car, and in some years the result of profits achieved was nearly $ 4 million!

 

3. Ferrari:

Ferrari profits were almost $ 90,000 per car, which is not a small figure. According to reports, it is the most profitable automakers.

 

Ferrari also relies on other sources to increase the company's profit as Ferrari cars are the most expensive vehicles at repairs, which of course increases the company's profits. In addition, Ferrari owns clothing stores and accessories for Ferrari fans.

 

 

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What is the factor that plays a big role in increasing the profits of automakers?

 

Some may think that producing more cars is the reason behind increasing the profitability of cars, but large quantities in the markets could be a negative factor and cause heavy losses.

 

It does not depend on the number of sales sold by the car. For example, Volkswagen is one of the best selling cars, but it is not the most profitable car.

 

So the factor that plays an important role in increasing the profitability of the car companies is the quality of the cars and flexibility in production. There are some manufacturers of cars such as: Mercedes-Benz and Porsche make a lot of money on each car because of the quality and luxury of what they do, although sometimes they do not produce many cars of the same model but they make a huge profit more than other car manufacturers

 

 

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Sell your used car or buy a car here.

 

 

 

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