Is big cars = big profits still the rule?

Is big cars = big profits still the rule?

At Ferrari, the world is still intact

Each Ferrari sold in the first half of 2018 created about €69,000 ($80,000) in operating profit — that's unmatched by any other luxury carmaker, says a fresh study by German auto expert Ferdinand Dudenhöffer.

Is big cars = big profits still the rule?

Runner-up: Porsche

Porsche is the most profitable luxury carmaker in Germany, boasting €17,000 in pre-tax earnings per unit sold, leaving its domestic rivals way behind.

Is big cars = big profits still the rule?

German luxury brands doing just fine

While Porsche sticks out, domestic competitors BMW, Mercedes and Audi create an average €3,000 per car in terms of operating profit.

Is big cars = big profits still the rule?

Still profitable

Cars from the UK's largest auto manufacturer, Jaguar Landrover, only wash some €800 per unit into the company's coffers. Big cars, but not so big profits — but it can get much worse ...

Is big cars = big profits still the rule?

Costly, not just for clients

... as you can see in the example of Elon Musk's iconic Tesla cars. A luxury Tesla doesn't turn a profit yet. On the contrary, it costs the company around €11,000.

Is big cars = big profits still the rule?

Bringing up the rear

But Bentley's luxury cars fare even worse, according to the Dudenhöffer study. The survey says automobiles from the Cheshire-based firm currently create nothing but losses — a record €17,000 per unit sold.

Not that long ago, it was fair to say that the biggest luxury cars also created the largest profits for automakers. But according to a new study, that's no longer true, although it still applies to some brands.

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