While the automobile market is experiencing a record drop in sales of new vehicles, the financial performance of manufacturers has never been better.
In the first half of 2022, car manufacturers are posting record financial results. Despite a 14% drop in new car sales in Europe (-12% worldwide), automotive brands are celebrating.
At Stellantis, first-half revenue (88 billion euros) increased by 17% compared to the same period last year. Operating income is now up 44%, with double-digit margins in almost all global markets.
On the side of the Renault Group, we also display a broad smile. Despite a 16% drop in sales, turnover remained stable at around 21.1 billion euros (+0.3%). The manufacturer revealed an operating margin of 4.7% excluding Russia, with net income from continuing operations of 657 million euros in the first half.
French manufacturers are not alone. Volkswagen’s first-half profit rose 5.7%. In the United States, too, manufacturers are ecstatic. Ford announced a 19% increase in sales.
Manufacturers are raising their outlook despite rising commodity and energy prices. “We are confident that we will be able to compensate for these price increases and continue our positive trend. Therefore, if the supply situation is in line with expectations, we will improve our outlook. By the end of 2022, we are now aiming for 4% to 5% operational profitability on sales, says Renault’s financial director. All automakers raise their projections in a similar way. Is the crisis in the automotive sector really still relevant?