German premium automotive groups reported equal or
higher than forecast for 2023, with BMW leading in terms of volumes, while Mercedes-Benz recorded the highest margins.
Price war
A table that illustrates the different strategies adopted by manufacturers in the race for electrification in a context of tariff war. The American Tesla, pioneer of high-end electric cars, has cut prices with the aim of favoring volumes over margins, a strategy that the groups
Europeans have had a hard time keeping up.
BMW recorded record sales this year with more than 2.5 million cars sold, but the Bavarian group was more cautious about its margin in the automotive division, which should reach between 9% and 10.5% by 2023. Its financial results will be published on March 20, 2024. .
Margin between 12% and 14% for Mercedes-Benz
For its part, Mercedes-Benz posted sales of just under 2.5 million units last year, due to a fourth quarter disrupted by supply constraints and model renewals.
The manufacturer is targeting an annual margin at the bottom of a range between 12% and 14%, and its financial results were published on February 22.
Audi one step below, including the electric
Volkswagen-owned premium brand Audi sold 1.9 million vehicles last year, but remains far behind its two competitors in terms of electric vehicles, with 178,000 units sold, compared to more than 375,000 for BMW and the 240,600 from Mercedes-Benz.
Audi’s margin is expected to be at the lower end of the 9% to 11% range.
BMW converts its Munich plant to electric
BMW will invest 650 million euros to convert its main plant in Munich to exclusively produce electric vehicles (EVs) from the end of 2027, the German automaker said on Wednesday.
A site that will assemble, in particular, the next generation of electric cars that will be based on the “Neue Klasse” platform.
Unlike other car manufacturers, BMW has not set a goal of stopping the production of combustion engine cars, clashing with European Union rules that prohibit the sale of new gasoline and diesel cars in the EU from of 2035.
Fully electric vehicles accounted for 15% of the group’s sales in 2023, a proportion that is expected to increase to a third in 2026.
Source: BFM TV
