Automakers Shift Production to Autos with Better Profit Margins
Automakers have shifted to selling vehicles with better profit margins in the U.S. as supply chain shortages and shipping concerns dampen production.
Automakers have shifted to selling vehicles with better profit margins in the U.S. as supply chain shortages and shipping concerns dampen production.
IMAGE: Getty Images
Automakers have shifted to selling vehicles with better profit margins in the U.S. as supply chain shortages and shipping concerns dampen production.
And it appears consumers are shifting their preferences as well. Luxury brands such as Audi, BMW, Mercedes-Benz, and Tesla report selling more vehicles in the U.S. than ever before, according to an article in the Wall Street Journal. Luxury vehicle sales comprise 17.3% of all U.S. auto sales in 2022, compared to 14.1% of overall sales in 2021.
Super premium models, as the Wall Street Journal labels them, are also hot among U.S. consumers. Sales of Bentley, Ferrari and Lamborghini jumped 35.6% to 6,700 vehicles in the first half of 2022.
In 2021, automakers sold 2.48 million luxury cars in the U.S., which represented a 13.2% jump over 2019. However, mass-market auto sales grew by just 1.7 percent in 2021. What’s more, J.D. Power market analysts assert automakers would have sold more luxury vehicles in 2021, if it weren’t for supply constraints.
Automakers report spending $80,000-$100,000 on a vehicle has become more common.
Originally posted on Auto Dealer Today
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