20 May 2017

VW Profit Per Brand : 2016


Car sales going upward look impressive but profit is the important - but often unseen - element of a business. Without it, a company will not survive very long. The VW Group has made plenty of money out gaining an unfair advantage with its defeat device but now it is having to pay for that now. Despite that, it is big enough to cope with the consequences.

So how did the various divisions manage in 2016? They all made money to some degree. Below they are listed according to per unit profit, the strongest first:

Porsche: €16,222 per unit (+4.4%), sales 239,000.

Porsche only goes back to 2012 with the VW Group listings and this was the second best year. The per unit profit is impressive. 

Bentley: €10,182 per unit (+1.8%), sales 11,000. 

Despite getting hit by a sales halt in Korea, it still held up well. The new Bentayga may add to the bottom line in 2017.

Audi: €3,159 per unit (-5.9%), sales 1,534,000. 

This is the lowest p.u. profit since 2010, despite total sales only being eclipsed in 2011 (by a tiny margin at that). So while p.u. profit is good, one would think the VW Group would rather see improved profit than greater sales in 2017. 

Škoda: €1,471 per unit (+28.6%), sales 814,000. 

With record profit up 28.6% nearly €1,500 p.u, things are looking good. Sales didn't increase that much either. It's larger models are no doubt a big help here in maximising a solid bottom line.

VW LCV: €952 per unit (+13.6%), sales 478,000. 

I would have thought the €952 p.u figure was a little low for light commercial vehicles but at least it's going the right way, up.

VW Car: €430 per unit (-9.5%), sales 4,347,000. 

This was the lowest p.u. figure since 2008 and the fifth consecutive year of reduction. Clearly too much emphasis was on volume and saloon cars. More SUV's are on the way and the need for a stronger bottom line performance should be the major focus moving forward. Recent concessions from German workers will help too.

SEAT: €279 per unit (% n/a), sales 548,000. 

SEAT doesn't do profit, so to be in the black is a novelty, one the brand will no doubt repeat more often. It's reliance on smaller cars and no SUVs has been at the root of the problem, not mention modest volumes. It now has an SUV and two to follow so it seems it has a future. So while the €279 p.u figure may have you spluttering into your morning coffee, bear in mind this is historically a fine result.

Summary: Profit is king in a capitalist society so with all the recent dramas with the VW Group, it will be aiming to get that sorted. After all, growing sales looks impressive but healthy profit keeps you in business.

Data source: VW Group.

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