BMW Earns About $5000 Profit Per Vehicle | F30POST | BMW 3-Series and 4-Series Forum. According to an Autonews article, BMW made about $5,000 per vehicle in profit in 2016. Porsche earns the most money per car among the high-end German brands, $17,250.
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Climbed sales of automobiles, SUVs, and motorcycles were the traditional means through which BMW’s annual revenue increased. In comparison to its coronavirus-hampered 2020 performance, the automaker’s vehicle deliveries, which include cars and SUVs, increased by 8.4% to little over 2.5 million vehicles. That occurred in spite of production hiccups brought on by a persistent global semiconductor chip shortage.
These “electrified” vehicles, which include plug-in hybrids or completely electric models, made for about 13% of the 2021 deliveries. Just over 328,000 electrified vehicle sales were made by the BMW Group in 2021, an increase of 70% from the year before but still well short of EV market leader Tesla’s 936,000 sales.
By 2030, BMW wants at least half of its global deliveries to be entirely electrified vehicles.
Costs are associated with the EV push. BMW increased its R&D spending by 10.7% to 6.3 billion euros, much of which was devoted to developing new EV designs and parts. However, when reported as a percentage of revenue, it was roughly in line with 2020 at 6.2%.
In spite of the chip shortage, BMW’s profitability increased as the business focused on producing its most lucrative car lines. This is encouraging news for investors anticipating that BMW will be able to afford the switch to zero-emission vehicles. Before the Covid-19 pandemic rocked the world’s sectors, the operational profit margin in BMW’s automotive business, a closely followed number among auto analysts, increased to a robust 10.3% in 2021 from just 2.7% in 2020 and 4.9% in 2019.
BMW motorcycle sales increased 14.8% in 2021 to little over 194,000 units. Operating profit margin for the motorbike division increased from 4.5% in 2020 to 8.3% in 2021.
According to Nicolas Peter, who works for BMW in a position akin to a chief financial officer for a U.S. company, “our business figures are proof that we were able to combine the underlying transformation and the significant investment it entails with strong operational success in a very volatile environment in 2021.” “We are hopeful about the future and at a good place.”
BMW intends to distribute a portion of that large profit to its stockholders. At the annual meeting next week, the firm said that it will propose a new share repurchase program as well as an increase in the annual dividend to 5.80 euros per share from 1.90 euros in 2020.
Separately, BMW disclosed on Thursday that it has reached an agreement to buy Alpina, the name of a long-standing manufacturer of higher-performance variations of BMW vehicles, some of which have occasionally been made available through BMW’s own dealership network. Like the AMG brand at rival Mercedes-Benz, the Alpina brand will eventually become an internal trim line for BMW.
BMW’s annual shareholders meeting, which starts on March 16, will provide a thorough report on the company’s fourth-quarter and full-year results.
BMW Anticipates Meeting Profit Goal As First Quarter Sales Increase By A Third
BMW projects that its profits will more than quadruple in 2021 compared to the coronavirus-ravaged bottom line of the previous year, and ratings agencies support its plans for electrified vehicles.
BMW only made EUR930 ($1,100) per vehicle last year, according to Germany’s Center of Automotive Management (CAM), and even if it quadrupled that amount in 2021, it wouldn’t even come close to the heyday of 2017, when profits topped EUR3,000 ($3,600) per vehicle.
BMW announced on Thursday that sales of its cars, SUVs, and luxury brands like Mini and Rolls-Royce increased by 33.5% to 636,606 in the first quarter of 2021, with sales of electrified vehicles (pure electric, plug-in hybrids, and hybrids) more than doubling.
BMW stated in a statement, “This puts us on track to deliver more than 100,000 fully-electrified vehicles this year.”
By Thursday noon, BMW shares had marginally increased to EUR88.86. Since the trough of roughly EUR68 in January, shares of BMW have been surging.
BMW revealed last month that its 2020 profit before taxes dropped 27% to EUR5.2 billion ($6.2 billion), and the automotive profit margin decreased to 2.7%. According to the firm, this will more than double in 2021, reaching 6% to 8%.
BMW has stated that by 2030, it anticipates at least 50% of its sales to be battery-powered. Along with the i3 city car and the iX3 SUV, the i4 sedan and the iX SUV will both be launched as all-electric vehicles before the end of the year. BMW’s Mini division offers an electric model and plans to switch to all-electric operation by 2030. There are plans for electric versions of the large 5 Series sedan, 7 Series flagship, and X1 SUV.
BMW profits increase to EUR3.4 billion as the company focuses on more premium vehicles.
BMW outperformed expectations in the third quarter of 2021 thanks to a focus on more expensive and electric vehicles that allowed the German premium automaker to weather a global chip shortage.
According to BMW, profits before taxes increased to EUR3.4 billion (PS2.9 billion) between July and September, a 38% rise over 2020 and a 52% increase over 2019, before the coronavirus epidemic struck.
BMW moved production to higher-margin automobiles like the x7 sport utility vehicle, which helped it increase profits despite a 12% year-over-year fall in overall vehicle sales to 593,000. Revenues increased by 4.5% to EUR27 billion.
Automobile manufacturers have been adversely affected by the global shortages of semiconductors, which are used to build computer chips, as the demand for electronics has increased since the coronavirus’s first brief drop in supply. Automobile manufacturers are relying more and more on computer chips to manage everything from air conditioning to electric car batteries, but because they reduced orders in anticipation of fewer sales, they were left vulnerable when those sales increased.
BMW’s CEO Oliver Zipse claimed that the business was “overcoming challenging conditions,” such as the problem with semiconductor supplies and the lasting consequences of the coronavirus outbreak.
In addition, he noted that sales of electric and plug-in hybrid vehicles had increased by double between January and September. However, just 60,000 fully electric vehicle sales, or 3% of all deliveries, occurred during that time. Unlike hybrids, fully electric vehicles do not emit carbon dioxide into the atmosphere.
In 2022, Zipse predicted that BMW would continue to sell a large number of electric vehicles. According to the manufacturer, demand for brand-new electric vehicles, such as the iX SUV and the i4 saloon, is still high.
In contrast to some of the challenges faced by other automakers, notably their suppliers, BMW was able to weather the shortages. Despite this, Zipse claimed that greater investment was needed in European semiconductor production given the dependence of the European auto sector on imports from nations like Taiwan and South Korea.
Due to the lack of semiconductors, Volkswagen, BMW’s German rival, reported declining profitability last week. Stellantis, a company created this year from the merging of Fiat and Peugeot, also reported declining revenues.
The head of Volkswagen’s premium brand, Audi, predicted that chip supply would remain constrained at least through the summer, while the company’s Skoda brand predicted a reduction in output of around 250,000 vehicles this year.
automotive industry.
1 This includes the Shenyang joint venture BMW Brilliance Automotive Ltd. (2017: 385,705 units, 2018: 455,581 units, 2019: 538,612 units, 2020: 602,247 units, 2021: 651,236 units).
Statistics on retail vehicle deliveries reported for 2020 and 2021 cannot be directly compared to data on retail vehicle deliveries offered for earlier years. Please refer to “Comparison of Forecast with Actual Outcomes” in the BMW Group Report 2021 for more details on retail car delivery data.
2 EU-27 nations, including Iceland and Norway; starting in 2021, values are computed on a converted basis in accordance with WLTP (Worldwide Harmonised Light Vehicles Test Procedure). values for the New European Driving Cycle from 2017 to 2020 (NEDC).
3 Due to the fact that not all EU member states have released their official registration data, this estimate has a possible error of +/- 0.5 g CO2 per km. Official data is not anticipated to be released by the EU Commission until November of the following year.
4 The following flexibilities are listed in the regulatory criteria for 2021: Green technology with 1.7 g CO2 per kilometre (WLTP).
5 The 2020 NEDC figures were converted to WLTP after being adjusted for permissible flexibilities in order to improve year-over-year comparability. Specifically, they went from 99 g CO2 / km according to NEDC (including 5 g CO2 / km phase-in, 7.5 g CO2 / km supercredits, and 2.4 g CO2 / km eco-innovations) to 135 g CO2 / km according to WLTP (excluding flexibilities). A phase-in regulation and the acceptance of supercredits were both approved for 2020. These two simplifications are no longer applicable to the BMW Group as of 2021.
Efficiency ratio was calculated based on Scope 1 and Scope 2 CO2 emissions from vehicle production (BMW Group manufacturing sites, including joint venture BMW Brilliance Automotive Ltd. and motorcycles, excluding contract manufacturers), as we stated in GHG Protocol Scope 2 guidance. This method was primarily based on the use of the VDA emissions factors as well as isolated use of local emissions factors, but excluded climate-changing gases other than carbon dioxide (BMW Group manufacturing sites incl. joint venture BMW Brilliance Automotive Ltd., excluding contract manufacturers). Beginning in 2021, this indicator will also take into account the carbon emissions produced by all other BMW Group facilities. For comparison, the data for 2019 (base year) and 2020 have been appropriately modified (2019 before adjustment: 0.30 tons, 2020 before adjustment: 0.23 tons). Limited assurance audits are performed on the 2017 and 2018 numbers.
BMW Group’s global revenue from 2007 to 2021
The global revenue of the BMW Group was around 111.2 billion euros in 2021. The German automaker, which sells vehicles under the BMW, Rolls-Royce, and MINI brands, was one among the top luxury automobile manufacturers in the world in 2019. BMW rebounded rather fast from the 2008–2009 financial crisis, surpassing pre–crash revenue and EBIT by 2010.
With quarterly sales exceeding 93,033 units, BMW is presently the third best-selling European automaker in the United States. However, the MINI brand struggles to sell in the US, but MINI Cooper has done well to maintain its presence in the market, thanks in part to the Countryman model, which represented 40.2% of Mini’s sales in the US in 2018.
BMW has made bold goals to increase the sales of electric vehicles in only two years. If successful, this should enhance the company’s current 1% market share for electric passenger cars in Europe. The company’s MINI brand will soon be entirely electrified, and it may even have grandiose plans for totally electric, high-performance sports vehicles and motorcycles. In 2030, it is anticipated that there will be 127 million electric vehicles on the road worldwide.