AID NEWSLETTER > PREMIUM BRANDS
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FINANCIAL
RESULTS FY 2018 | JLR Is this the end of
Jaguar Land Rover’s party atmosphere?
JLR Jaguar Land Rover, the Tata-owned manufacturer of prestige sector cars, suffered a financial setback during its fiscal year ending March 31 this year
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FINANCIAL
RESULTS 2017 | BMW
BMW ends last year with largely unchanged
profits, but turns up the voltage BMW’s full-year 2017 automotive margin remains stuck at 8.9%, but its capital expenditure jumped 22.1 per cent to a record €7.1bn. “Our future” said BMW CEO Harald Krüger when presenting last year’s group results “is definitely electric”. For the current year BMW expects a slight rise in both deliveries and revenue, accompanied once more by an EBIT margin in the 8-10 per cent target corridor. The projected “slight increase in [2018] deliveries” is due to projected growth in China and the US in particular, the company said
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FINANCIAL
RESULTS 2017 | AUDI
Audi
full-year operating profits climbs to €5.06bn, margin hits 8.4%
Audi, the historically fast-spinning profit dynamo for the autoindustry’s leading Volkswagen Group, in spite of stiff headwinds on the now closely monitored diesel front, performed well over the past year, particularly when considering that its ample Joint-Venture profits from China, whose prestige car market it has long dominated, are currently not included in its declared operating profit
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PREMIUM
CAR SALES CHINA
Audi, after hot 11th hour sprint, regains China’s prestige car sales crown
Audi, taking a leaf out of Usine Bolt’s rule book for winning the top prize time and time again, may have started slowly in last year’s closely watched Chinese car sales year, but in sight of the finish line the Ingolstadt prestige car maker ended China’s full-year 2017 car sales race with a blistering hot finish, placing it for the year once more ahead of rivals Mercedes and BMW
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PREMIUM
BRANDS | MONTHLY SALES TRENDS
Mercedes already sold more cars in China than during the whole of last year
Daimler’s high-flying Mercedes car subsidiary, the world’s leading seller of high-image prestige-sector cars, already sold more of its cars in China in the first 10 months of this year than it did during the whole of last year, yet the rate of growth is starting to slow
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PREMIUM
BRANDS | MONTHLY SALES TRENDS
For Mercedes, China still holds key to global prestige sector leadership
Daimler’s still high-flying Mercedes car brand, under fire from powerful volleys of competitive shots from compatriot prestige sector rivals BMW and Audi, nevertheless retained September’s and year to date position as the world's top-selling prestige car brand
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PREMIUM
BRANDS | MONTHLY SALES TRENDS
Audi claws back August prestige sector crown in China
Audi’s already harassed bigwigs have breathed a sigh of relief following a continuing rebound in the brand’s car sales fortunes in China, Audi’s biggest market. In spite of this year’s third monthly gain in a row, however, commentators remain unsure as to whether Audi - for the whole of this year - will be strong enough to dislodge Mercedes and BMW from their newly gained first and second position in China’s still buzzing prestige sector market. In China, at this year’s eight months stage, Audi still trails behind Mercedes and BMW, albeit by a gradually shrinking margin
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PREMIUM
BRANDS
Mercedes, the calm before the storm? In Europe, auto-industry news is currently top of the media agenda, and much of it, at least for Germany’s leading carmakers, is depressingly gloomy. On the one hand there is seemingly endless flak aimed at diesels, while on the other there are potentially deeply damaging new allegations of yet another auto-industry cartel; this time among Germany’s leading carmakers
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PREMIUM
BRANDS
Prestige sector car battle – Mercedes’ star still climbing
The prestige sector car brand best known for its star emblem has now been growing sales and market share for months on end. So much so in fact, that for Mercedes there appears no end in sight for the continuing flow of good news
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PREMIUM
BRANDS
Mercedes Cars, great strength, few problems
Mercedes, Daimler’s luxury car arm, which first edged ahead again of arch-rival
BMW during the course of last year, thus retaking the global luxury car sales crown, has continued to consolidate its coveted lead during the opening three months of this year. Mercedes’ lead over second positioned BMW at this year’s first quarter mark widened to nearly 60,000 sold cars after still running almost neck and neck during the same period last year
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GERMANY
Audi
hurt by toxic waves of Volkswagen diesel emissions scandal
Describing this past year as the most challenging in Audi’s history,
thanks in no small part to the toxic fallout from Volkswagen’s
dieselgate affair and the related financial drain on the company’s
resources, for the current year Rupert Stadler – Audi CEO – still
offered a return to near normal profitability and a slight rise in unit
sales. In short, the optimistic prospect of a return to business as
usual. But in more ways than one, for Audi’s CEO 2017 already began on a
sombre note
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GERMANY
BMW
fighting fit, switching into assault mode
BMW, which has long
dominated the world’s lucrative luxury car segment together with its
blue-blooded German compatriots Mercedes and Audi, completed yet another
year with another set of records. And yet, for 2017 BMW promises more of
the same. Almost three month into the current year, and no detectable
heat loss, for 2017 upbeat BMW is promising new record highs for
deliveries, revenues and earnings, accompanied firstly by its imminent
intention to go “on the offensive” and secondly by launching its biggest
ever new product blitz
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PREMIUM
BRANDS
Mercedes sets sights on global prestige sector crown and wins 4-years early
Mercedes, the manufacturer of high-status prestige cars has last year comfortably recaptured the sales crown in the lucrative world of global prestige sector sales. Originally, Mercedes had set 2020 as the target for unseating BMW from its long-held global prestige sector throne. Worldwide, Mercedes also retained the coveted title as the fastest growing German prestige carmaker
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EUROPE
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AID EXCLUSIVE
And the 2016 winners are? – Prestige carmakers continue to steal mass-carmakers sales
With West Europe’s new car sales finally inching back to the 14m level last year, the autoindustry’s best turnout since pre-crisis 2007, the car sales gap between Europe’s hard-squeezed volume car makers and their still money-raking premium car rivals has continued to widen
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EUROPE
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AID EXCLUSIVE
Europe’s Luxury car sales party remains in full swing
The BMW Group sold more cars in November’s West European car market than mass market heavyweights Ford and Peugeot. According to AID’s provisional November car sales numbers, for Western Europe, BMW Group’s sales rose almost three times faster than the overall market, thanks in no small part to strong November sales push efforts in Germany and in the UK in particular
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PREMIUM
BRANDS
Mercedes, at this year’s 11-months stage, already sold more cars than during the whole of last year
Conducting its global car sales business in just such manner, in the 11-months to November this year the brand with the three-pointed star already sold more
Mercedes-badged cars than during the whole of last year.
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PREMIUM
BRANDS |
AID EXCLUSIVE
For Mercedes, BMW and Audi, this Christmas will be merrier than ever
Figures compiled by AID show that this year’s global prestige sector car market, a highly profitable sector that Mercedes, BMW and Audi have almost made their own, remains on course for yet another all-time global sales record. |
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PREMIUM
BRANDS
Second quarter pre-tax profits of Daimler’s Mercedes Cars operation, dragged down by the weight of €799m exceptional one-off charges, chiefly the cost attributable to the Takata recall and inventory adjustments, slumped 37 per cent to €1,410m from a still lofty €2,227m during the corresponding period last year
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PREMIUM
BRANDS |
AID EXCLUSIVE
Western Europe, described more often than not as the ‘old world’ and largely forgotten or side-lined at
best when sketching out colourful future car sales scenarios, has of late surprised most professional
market observers and the autoindustry no less by its sudden vitality
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PREMIUM
BRANDS |
AID EXCLUSIVE
Testament to Mercedes’ strapping good health and likely harbinger of what the future holds in store, this April Mercedes set yet another major milestone. Continuing to strengthen its position in this year’s sharp elbowed Chinese premium car market - until fairly recently the main engine of profitability for Europe’s aristocratic old guard - this April Mercedes nudged aside China’s long-standing number two prestige carmaker BMW by the narrowest of
margins. |
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PREMIUM
BRANDS |
AID EXCLUSIVE
Daimler’s Mercedes luxury car unit, buoyed in near equal measure by its determined global car sales drive and the high on-going popularity of its latest status-rich cars, upset long-standing rankings by dethroning BMW as the long-reigning global prestige car sales king during this year’s first quarter |
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PREMIUM
BRANDS |
AID EXCLUSIVE
The stakes have been raised again in the tense game of poker being played over the future leadership of the world’s still lucrative market for high-status cars, and in particular over the future premium sector position of hard-challenging Mercedes. |
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PREMIUM
BRANDS |
AID EXCLUSIVE
Figures from AID’s latest regular global prestige car sales monitor reveal that buyers of these higher priced prestige cars from top of the tree carmakers Mercedes, BMW, Audi and Porsche for instance appear to have lost at least some of their much-talked about appetite for these status symbols. AID tries to seek out and explain why the world’s previously sizzling prestige sector market has suddenly come off the boil
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Audi – one of three outstanding winners in West Europe’s fiercely contested car market remains the old continent’s leading prestige car brand. But apart from the imminent fallout from Volkswagen Group’s fast spreading diesel emission scandal, rivals BMW and Mercedes in particular are piling on the pressure. Both made it obvious that they won't stand idly by and watch Audi grab more market share in Europe or elsewhere
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Germany’s car makers, and prestige sector leading BMW, Audi and Mercedes in particular, received their second shock in little more than three weeks when AID compiled data for Western Europe revealed that in the nine months to September this year Tesla’s Model S has not only outsold previous sector heavyweights such as BMW’s outgoing 7-Series and Audi’s A8, but has also sunk its teeth into Mercedes’ top-notch
S-Class
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