Financial experts warn: Car companies are making record profits despite price wars

Financial experts warn: Car companies are making record profits despite price wars

According to a report by www.finanzen.net The world's largest car companies achieved record sales and profits in the third quarter despite the difficult economic situation and an intensifying price war. According to a study by the auditing and consulting firm EY, this was primarily due to Japanese car manufacturers benefiting from a weak yen. The German car companies also performed well, with Mercedes-Benz being the most profitable. Sales rose by 11 percent to 504 billion euros and profits increased by more than a third to almost 39 billion euros. The average margin of all car companies climbed to 8.6 from 7.2 percent compared to the same period last year.

The increased profits of the car companies show that the industry remains robust despite the challenges of falling demand for new cars and price pressure due to competition in electromobility and the introduction of new models. Despite the subdued development, the German car companies were able to achieve solid profits overall, with Mercedes-Benz being the most profitable with a margin of 13 percent. This shows that German car manufacturers were able to maintain their competitiveness even though US companies had to record a decline in profits.

It is clear that the auto industry faces major challenges that could impact profitability and competitiveness. The introduction of new models and the promotion of electromobility continue to require significant investments, which could affect companies' margins. These developments will continue to shape the market and require careful analysis and adjustment of the car companies' business models and investment strategies.

It remains to be seen how the industry will develop in the coming quarters and how companies will respond to the increasing challenges. It is clear that car companies must act strategically and adapt their resources and investments to ensure their long-term competitiveness.