What is the margin of car manufacturers on a car?

[Christophe]

At a time when car manufacturers are complaining (or rather putting pressure) on the government (you know the "bankrupt" one) to release the billions needed "to fill" drops of less than 20% on sales!

This is all the more unacceptable since Renault recently dismissed 4000 people in France to relocate to the East ...

The purpose of this subject is therefore to try to shed light on the margins and profits of car manufacturers. In other words: how much the renault shareholders really earn when you buy them a car for € 15000.

I've always heard that a car at the end of the chain costs about 1/5 of the sale price .... Let's see if it's a legend or not.

For this, we need:

a) sales figures for brand new vehicles worldwide / France. Example for 2003: https://www.econologie.com/les-ventes-de ... -3762.html

b) the accounting figures for the stock market, for example with Renault: http://www.boursorama.com/profil/resume ... ole=1rPRNO

After a few divisions will suffice, adjustment to obtain what we are looking for.

Does the method sound good to you?

[bobono]

It all depends on whether the production line and the model studies are amortized or in the amortization phase.

EVEN if the models evolve as from the 306 to the 307 a large part of the parts can be common (chassis rear axle etc.

French State 33% VAT on the total

DEALER 30% of the price paid to the builders.

REST manufacturers once paid can ??????? .

The results of the manufacturers are known; it suffices to divide them by the number of vehicles produced.
For Renaud

income statement
thousands EUR 12.03 12.04 12.05 12.06 12.07
Revenue 37 525 000 40 292
Income from ordinary activities 37 543 000 40 292
Operating profit 1 256 000 1 872
Cost of net financial debt 0 -22 -000 -95 -000
Share of results of companies accounted for using the equity method 1 860 000 1 923
NR of discontinued operations -22 000 0 0 0
Net income 2 513 000 2 903
Net income (group share) 2 480 000 2 836
vehicle sales (95,1%): almost 2,5 million passenger and utility vehicles sold in 2007 (2,1 million under the Renault brand, 230 under the Dacia brand and 164 under the Renault Samsung brand);

Profit for 2007 is comfortable

[bobono]

This is good news that proves that the manufacturers are working on it right now.

Honda announces its withdrawal from Formula 1 due to the economic crisis.

Now that the wise Nipon have shown the example which will follow.

I suggest a race with only renewable, keeping the same drivers.

[Christophe]

33% VAT? What is this bullshit?

Good by dividing net profit by the number of vehicles we find a little more than 1090 € per vehicle sold.

In terms of net income, we are therefore far from the margins of 5 or 6, especially if these figures include Renault trucks!

Obviously the net result is not the margin ...

At the CA level: the average selling price of a Renault vehicle is (Turnover / 2.5 M) = € 16280

Hard to find the margin ... should have the charges in the public balance sheet ...

Can someone tell me how it is possible that the operating profit is lower than the net profit?

[AIR]

VAT is 19.60% and the figures found on a balance sheet are always EXCLUDING TAXES.

You should know the margins per vehicle, and that must exist somewhere ...

Now, it is clear that one can obtain in Concession 25% has 28%, But that is not possible for all ... It is I think one vehicle out of twenty, see thirty ...
The average reduction should be 10%.

And this Concessionaire must live well ..

[bobono]

Renault I have a problem because you say 100 € margin I do not have its figures.

€ 2 margin for the group for 734 vehicles this gives me € 000 margin per vehicle.

For Peugeot 826 margin for 000 vehicles produced.

Obviously that is not much.

Maybe the result is in thousands of € possible

[Remundo]

Hello everyone,

It is very ambitious to estimate the average margin on each vehicle ...

The VAT is completely neutral for a company which collects the tax to pay it back to the State, or vice versa if the added value of the box is negative.

It is usually considered in the automotive industry that an operational margin (MOP) of 3 to 4% is necessary.

The Ghosn plan for Renault targeted 6%. They are not ready to have them with the crisis ...

The operating margin is the ratio between operating profit (Turnover minus production costs, including salaries paid) and turnover.

that roughly means that for 10 Euros in turnover, Renault puts 000 Euros in his pocket (if MOP = 360%).

But still on this 360 euros, 33% go on corporate tax. There would only be 240 Euros per total of 10000 Euro (HT) or a margin of only 2,4%.

Frankly, the heavy industry sectors are generally the ones with the lowest margins.

Where the margins are better, it's the activities immaterial de business and services: this is why the Renault network is developing leasing, LOA, loan activities, which, moreover, were advanced 1 billion euros yesterday by friend Nicolas to continue lending ...

The real "greasy" are not hands in the grease: it is in the services that "that greasy" ...

Emblematic example: all internet / telephony activities with subscription.

[Christophe]

Renault I have a problem because you say 100 € margin I do not have its figures.

€ 2 margin for the group for 734 vehicles this gives me € 000 margin per vehicle.

For Peugeot 826 margin for 000 vehicles produced.

Obviously that is not much.

Maybe the result is in thousands of € possible

a) I said 1090 and not 100 €
b) of course it is thousands of euros
c) margin and net profit is not the same

[Remundo]

There's something else ...

When you take the figures, there's also the margin resellers from Renault ...

What I was saying is that, in my opinion, there is more room in the resale network than in the production plant that balances new cars in the resale network.

[Former Oceano]

Anyway, once the vehicle is purchased, you capture it with a 4 or 5 year warranty during which it will only see one of the brand's dealers and there ...

We invoice and we package services, maintenance operations, small parts or consumables billed expensive because of the brand ... And there they get fat ...