20 AUTOCAR.CO.UK 7 AUGUST 2019
T
he first half of 2019 has
been unusually turbulent
for the world’s car makers,
and coming off the back
of a solid 2018, the reverse into
financial losses for some firms
has been a surprise.
Weak sales in China can be
blamed for some of the trouble,but concerns over global
trade wars, Brexit, Dieselgate
and anti-trust legal action in
Germany are also factors.
Of the eight firms we looked
at, five – BMW, Fiat Chrysler
Automobiles, Ford, Nissan
and PSA – made a profit in the
second quarter or half year.
But six of the eight recorded
reduced profits, in some cases
by a dramatic margin, such as
Ford, Mercedes and Nissan.
It is worth noting that the
April to June trading period forJapanese companies is called
Q1, because their financial year
ends in March, making their Q1
the equivalent of Q2 in the US
and Europe.
Aston Martin’s woes are
outlined on the previous page,
but here’s our rundown of a
selection of winners and losers.
JULIAN RENDELL
This year’s winners and losers
Tough trading conditions have taken their tol l o n s o m e c a r m a ke r s m o re t h a n ot h e r s
Profit £1.86bn (-28.4%) Revenue £23.4bn (+2.9%) Sales 647,504 (+1.5%)
(Second quarter figures)
Provisions for Dieselgate-related ‘anti-trust’ legal costs put a significant drag on profits at BMW,
despite production hitting a record. The company also highlighted increased competition, launch
costs for new models and higher R&D expenditure on electrification and autonomous driving. BMW
still produced a significant profit in the quarter, but it “dropped sharply” in the company’s own words,
and its margin reduced to 6.5% – lower than volume car maker PSA. BMW delivered 566k units (up
2.7%), Mini 89k (down 5.8%) and Rolls-Royce 1328 (up 36%). Although most car makers struggled in
China, BMW Group sales increased 24% there. Europe remains difficult, though, with sales down 4%.
Loss £395m (+49%) Revenue £5.07bn (-2.8%)
Sales 128,615 (-11.6%) (Second quarter figures)
JLR returned to loss-making trading in the second quarter, having
made a welcome profit in the first quarter. The loss was blamed on
a global sales slump. UK sales were actually up, and sales in China
recovered in June, an encouraging indicator for the rest of the
year. Plant shutdowns and delays in WLTP certification were also
blamed. Looking ahead, JLR says a £2.5bn cost-saving programme
is on track and delivered £400m of benefits in the quarter.
Profit £3.01bn (+10.6%) Revenue £34.9bn (-0.7%)
Sales 1.903m (-12.8%) (First-half figures)
PSA is a bright light for the industry, having increased first-half
profit, boosted by new model launches and a contribution from
Opel-Vauxhall, and despite a drop in global sales volume. PSA’s
operating margin is now 8.7% – impressive for a volume car
m a ke r. P S A s ay s co st s av i n g fr o m p l a t fo r m - s h a r i n g w i th O p e l -
Vauxhall boosted profitability, offsetting £275m of extra costs in
China. The group’s best-seller remained the Peugeot 208.
Loss £336m (-43%) Revenue
£4.44bn (+60%) Sales
95,356 (+128%) (Automotive
revenue: Q2 figures)
The new Model 3 gave Tesla
a solid boost in the secondquarter, with sales and revenue
well up and losses reduced.
Tesla looks to be heading in
the right direction, with Model
3 production rising threefold
to 72k units and operational
losses reducing. However,
exceptional items, such as
£96m in restructuring costs,
block the shift to profitability
and Model S and X sales dipped.
JAGUAR LAND ROVER
BMW
TESLA
PSA
Profit £722m (+14%) Revenue £24.3bn (-3%) Sales 1.157m (-11%) (Second quarter figures)
FCA is having one of its better years, with its profit increasing solidly. Strong US performances
by Ram and Jeep are the highlights, with the highly profitable Ram 1500 and Super Duty boosting
its pick-up market share to 28%, up 7% on last year. Meanwhile, demand is strong for the newly
launched Jeep Gladiator pick-up, which is already hitting its forecast full-production run rate.
On the downside, Alfa Romeo, Fiat and Maserati are all struggling and sales in China are weak.
In response, Maserati is planning a “significant inventory reduction” in the second half of 2019 in
readiness for new models in 2020. Always look on the bright side: watch out for bargains in Maserati
dealers this autumn.
FIAT CHRYSLER AUTOMOBILES