BMW loses profit-margin lead to…Suzuki?

News | August 22nd, 2018 by 18
New BMW X5 real life images 03 830x553

For some time now, BMW has been the most profitable automaker in the world, boasting the highest profit margins. Thanks to some clever engineering, packaging and pricing, BMW has been able to be the most profitable automaker for years and years. However, at least for the first three quarters of 2018, it’s lost that title to…Suzuki.

That’s right, Suzuki, the manufacturer of motorcycles and fun little econoboxes, now holds the highest profit margins of any car company. Suzuki now holds 11.8 percent profit margins, while BMW is at 11.4 percent, according to German publications. And, honestly, congrats to Suzuki.

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U.S.-made BMW X3

 

It’s good to see a small-ish automaker doing well, especially one that makes surprisingly fun and interesting little cars (remember the Kizashi?). Also, BMW is going to be just fine. Despite being in second place, it’s a dominant second place. Daimler is currently third among the most profitable automakers with 6.5 percent. So BMW’s 11.4 percent is still quite a bit higher than that, showing that BMW is still thriving.

BMW, among all other German automakers, also faced some difficulty this past year. While not directly involved with the infamous diesel scandal, BMW still faced a bit of a challenge from it, as many customers lost faith in German car brands. There’s also the looming trade war between the U.S. and China, which has been hurting profits on all U.S.-made SUVs exporting to China.

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Kizashi!

Despite all of that, BMW has still managed to remain very profitable in the industry. Though it is surprising to see Suzuki being number one, as it’s not really a brand known for profitability. Especially considering that Suzuki no longer sells any cars in the U.S. (bring back the Kizashi!). So good on Suzuki and, to any Germans that are worried about BMW (because there seems to be a lot of that), fret not, BMW will be just fine.

[Source: Jalopnik]

18 responses to “BMW loses profit-margin lead to…Suzuki?”

  1. Maciek says:

    what about Porsche margin?

  2. disqus_gMkqrHMwOa says:

    When did Suzuki issue a profit alert based on increased R&D costs? They didn’t?! When did BMW?

  3. Quovadis69 says:

    BMW should explore a Direct-to-Consumer sales model like Tesla and cut-out the middle man.
    Honestly, I don’t see the value of car dealers who pocket a lot of the profit for doing nothing!

    • disqus_gMkqrHMwOa says:

      Unfortunately they have a lock on the market, franchises are frequently passed from generation, I’ve known several managers who inherited their jobs & have NO interest in the industry. Tesla were going state to state challenging privately held franchising in court.

  4. Marcel Lukačić-Marca says:

    Congratulations to Suzuki. When I was a little kid, they made my favourite motorcycles: GSX-R 1000 and iconic Hayabusa. Oh, and in the 90s they made a tiny little fun hot-hatch called Swift GTI. A friend of my dad had a black one, with Swift GTI special white wheels. Good times…

  5. disqus_gMkqrHMwOa says:

    If margins are % how much is BMW actually out-grossing Suzuki?

  6. Arunabh says:

    BMW lost the sales chart race to Merc last year, lost the design mojo some half a decade back, stopped being benchmark cars, and now lost this race.

    There are quite a bit of losses that BMW is facing at the moment.

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