Global Automotive Industry 2024: Financial Performance and Market Realities
Stefan Bratzel, Prof. Dr.
+ Founder + Director CAM + Keynote Speaker + Expert for Automotive Management & Future Mobility
The first financial results for 2024 from leading German, European, American, and Japanese OEMs present a mixed picture. While some manufacturers have managed to increase revenues or maintain profitability, others are facing sharp declines in earnings and strategic challenges. The financial results from major Chinese OEMs are still pending, and their impact on the global market could be substantial, particularly in the rapidly evolving EV segment.
?? Performance Overview: Growth in Revenues, Decline in Profits
A key theme across the industry is a widening gap between revenue growth and EBIT performance. Several OEMs have achieved stable or even increasing revenues, but profitability is under pressure due to cost inflation, competitive pricing dynamics, and shifting consumer demand.
?? Outperformers: Resilience Despite Headwinds
? General Motors (+37.8% EBIT) stands out with significant profit growth despite $4 billion in losses from its Cruise autonomous vehicle division. This suggests strong operational efficiencies in its core business, particularly in high-margin trucks and SUVs in North America.
? Honda (+19.5% EBIT) continues to demonstrate a stable financial structure, with a diversified revenue base across passenger vehicles, motorcycles, and power products, helping to mitigate external shocks.
? Renault (+3.4% EBIT), although still in a transition phase, has managed to maintain a positive trajectory, reflecting the impact of its strategic restructuring efforts and cost control.
?? Challenges & Structural Weaknesses
?? Mercedes-Benz (-30.8% EBIT): The luxury segment is facing margin compression, with declining earnings across multiple business areas. Premium pricing power appears to be weakening.
?? Nissan (-74.8% EBIT): With an EBIT of just 0.94 billion EUR, the company is on the brink of unprofitability. The now-defunct Honda-Nissan merger discussions raise concerns about Nissan’s long-term independence and strategic direction.
?? Stellantis (-75.4% EBIT, -17.2% revenue): Cost-cutting measures appear to have reached their limit. The company now faces structural challenges in both Europe and North America, signaling an urgent need for investment in innovation and competitive repositioning.
?? Industry at a Crossroads
With cost pressures rising, competition intensifying, and consumer preferences evolving, global automakers are at a strategic crossroads. The coming months (years) will be critical in determining which players can navigate these challenges effectively and which may face structural risks to their long-term profitability and market position.
Additionally, consumer preferences in key automotive markets vary significantly: while the U.S. market remains largely focused on internal combustion engine (ICE) vehicles, China is accelerating its transition towards New Energy Vehicles (NEVs), including EVs and plug-in hybrids. Meanwhile, Europe sits in between, with a growing but still evolving EV adoption rate, shaped by regulatory frameworks and infrastructure expansion. These differences will play a decisive role in shaping automakers’ regional strategies and long-term investment priorities.
?? What do you think?
?? Share your thoughts in the comments!
Best regards, Stefan Bratzel Director, Center of Automotive Management
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Executive in Automotive Sales & Financial Services (captive, white label, F&I) / Leasing / CFM / Indirect NSC Sales Manager / OEM Captive Director / Head of Importer New Car Sale / Interim Management / CSO Agile Advisor
2 天前Insightful
Directeur Marketing industriel Groupe FSD SNOP
4 天前Intéressant
"never say never"
4 天前These numbers were to be expected. Many thanks for the consistently excellent summaries here on LinkedIn, Professor Bratzel. We can see that the EV transformation is not progressing in Europe and Germany. We see daily races for larger batteries and extended ranges. I’d like to ask: why does everyone believe that we can convince the 25 million german commuters living in rental apartments in urban areas to switch to EVs through this endless range race? I engage in numerous discussions in various car clubs about EVs and constantly hear the same argument: there are no charging options in cities. Despite having a legal right, landlords refuse to install charging stations. People coming home from work want to charge their vehicle right in front of their home, not go grocery shopping in the hope of finding an available and functioning charging station. My conviction is, we need widespread, overnight urban charging options. A single-phase 3.6 kW charger is sufficient to recharge 150-200 km overnight. This would eliminate range anxiety, allowing for smaller batteries, making vehicles lighter and, most importantly, more affordable. EVs would be purchased, strengthening the automotive industry and the economy.