German Handelsblatt: BMW, Mercedes, Volkswagen: Luxury instead of mass: How the car industry is making record profits despite all the crises005531

BMW X7

The auto industry is heading for a record year despite selling fewer and fewer cars.

(Photo: BMW Group)

40 billion euros. That’s how much money Volkswagen, Mercedes-Benz and BMW earned together from January to September. The net profit of the three German car giants increased by a third compared to the previous year. The industry is heading for a record year – although it is selling fewer and fewer cars.
Production is interrupted again and again due to a lack of semiconductors. However, manufacturers are making clever use of the shortage: they are building more luxury models and raising prices. The VW premium subsidiary Audi alone has raised its list prices four times in a year and a half.
According to calculations by the Center Automotive Research (CAR), a new car in Germany now costs around 41,300 euros on average. That is a quarter more than five years ago.

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