These are the three most profitable car brands in the world | Car

Consulting firm EY investigated the business figures of the 16 largest car companies in the world. Result: Mercedes is the most profitable. And with a profit margin of 13 percent. Japanese giant Toyota is second with a profit margin of 12.6 percent, closely followed by Munich competitor BMW (11.3 percent). Volkswagen follows at a distance with a profit margin of ‘only’ 6.2 percent.

The research looked at the so-called EBIT margin of the companies. This means that we looked at what percentage remains when the total costs are deducted from the total income. For example, to ensure proper comparison of the figures, different taxes around the world have not been taken into account.

Overall, car manufacturers were able to increase their sales in the third quarter, EY has calculated. Accordingly, revenues of the 16 largest car companies rose by 11 percent to 504 billion euros compared to the same period last year, and earnings before interest and taxes (EBIT) rose by 35 percent to 39 billion euros.

“Yet things are no longer going so smoothly in the global automotive industry,” says EY car expert Constantin Gall. “The coming year will be a very big challenge,” he says. Gall names the three biggest problems facing car manufacturers: declining demand for new cars, stagnant growth in electromobility and increasing price pressure.

What results from the problems can be annoying for the company’s employees, among other things. According to the EY expert, more and more manufacturers are responding with discounts, affordable financing offers and special promotional models. But that does put pressure on the margin. To expand their market position, car manufacturers spend a lot of money and thus reduce their profits. According to Gall, many companies are also looking to reduce costs. This also means that there may be layoffs.