Top 10 automotive manufacturers
In this article we look at the world’s top 10 automotive manufacturers ranked by revenue. All figures are according to the Forbes Global 2000.
10 | BMW
Based in Munich, Germany, BMW Group is responsible for the production of automobile brands BMW, Rolls Royce, and MINI. The company also oversees the manufacture and sale of motorcycles, spare automotive parts and the financial services associated transportation, sale, and financing of its fleet. BMW Group reported a net revenue of $104.16bn in 2017, while the company’s asset portfolio grew by over $12bn year to year, continuing a 10-year trend of continuous expansion. The company reported last month that January 2018 represented an all-time record in sales, with 169,538 completed transactions, a 3.8% increase over January 2017.
Official site: www.bmw.com
9 | Nissan
Nissan Motor is based in Yokohama, Japan, and reported a net revenue of $105.94bn in 2017. This figure represents a more than $4bn increase over the previous financial year. In November 2017, Nissan was forced to recall 1.2mn vehicles from the domestic market due to an inspection scandal. As a result, the company downgraded group operating profit outlook for the fiscal year by $0.9bn. However, due to Donald Trump’s tax bill, the company raised its group net profit outlook to a record $6.61bn from its earlier estimate of $5.01bn.
Official site: www.nissan-global.com
8 | SAIC
The Shanghai-based SAIC Motor Corporation reported a net revenue of $112.72bn in 2017, representing a $10.8bn increase year over year. The company’s annual revenue has grown consistently by over $99bn over the past 10-year period. In January 2018, SAIC opened its first factory in Thailand, estimated to have cost over $310mn and is predicted to have an annual output of 100,000 units, according to the Nikkei Asia Review. SAIC has also partnered with Charoen Pokphand Group, “seeking to stake a claim in a Japanese-dominated market as well as export to other Southeast Asian countries”.
Official site: www.saicmotor.com
7 | Fiat Chrysler
Formed in 2014 from the merger of automotive giants Fiat and Chrysler, Fiat Chrysler Automobiles is now based in London, and reported a net revenue of $122.81bn in 2017. The company has experienced erratic profits over the past four years, with net returns as low as $56.5mn. 2017 represents the largest profits achieved by the company after the merger, with a bottom line of $1.99bn. However, Chrysler sales fell 19%, Fiat brand sales were down 19%, and Jeep sales decreased 11%, with total Fiat Chrysler sales down 8% for 2017, according to 24/7 Wall Street.
Official site: www.fcagroup.com
6 | Honda
Headquarted in Tokyo, Japanese auto manufacturer, the Honda Motor Company, reported a net revenue of $127.86bn in 2017. This represents a $9B increase year to year and is the highest revenue over a ten-year period of near-continuous growth. However, profits have decreased by $1.7bn over the past three years, down to a five-year low of $3.93bn in 2017. In January 2018, Honda was forced to recall 350,000 cars from the Chinese market after reports of engine issues, according to Eyewitness News.
Official site: www.honda.com
5 | Ford
US auto manufacturer Ford Motor Company reported a net revenue of $151.8bn in 2017, an increase of over $2bn in comparison to the 2016 financial year. The company also reported a growth in its asset portfolio of over $13bn, continuing a seven-year growth trend in the wake of the 2009 recession. Looking to the future, the company ranked seventh on a list of electric vehicle sales in the US, “which says a lot about how far behind Ford is in appealing to this fast-growing niche market,” Seeking Alpha asserts. In response, Ford committed in January 2018 to investing $11bn into the development of a wide range of electric vehicles by 2022.
Official site: www.corporate.ford.com
4 | General Motors
Detroit auto manufacturer General Motors reported a net revenue of $166.38bn in 2017, a figure only surpassed in the past 10 years by pre-recession sales. After posting $1.8bn in net losses between 2014 and 2016, General Motors Korea announced in February 2018 that it would close one of its four plants in South Korea. “The move is the latest in a series of steps the US automaker has taken to put profitability and innovation ahead of sales and volume. Since 2015 GM has exited unprofitable markets including Europe, Australia, South Africa and Russia,” CNBC reports.
Official site: www.gm.com
3 | Daimler
Daimler, the Stuttgart-based German auto manufacturer, reported a net revenue of $169.54bn in 2017, representing an increase of almost $4bn over the previous financial year. The company announced in February that it had a record year in sales, with over 3.3mn new vehicles delivered, representing a 9% increase over the previous year. Daimler’s board chairman, Dieter Zetsche, announced: “Our company stands for stable success in volatile times. But stability is no justification [to stand still]. That’s why we are pushing forward with the transformation in all areas at Daimler.”
Official site: www.daimler.com
2 | Volkswagen
Wolfsburg-based auto manufacturer, Volkswagen Group, reported a net revenue of $240.34bn in 2017, representing an increase of 4.3%, year over year, according to German news source De Local. This can be viewed as no small feat in of itself, given the company’s ongoing embroilment in the 2015 emissions scandal; this month, the Quebec courts approved another class action lawsuit against the automotive giant. The cost of recall, production overhauling, and financial reparations is estimated to have cost the company in excess of $30bn. In the face of financial setbacks, Volkswagen has turned to the emerging markets of electrical and self-driving cars, acquiring Aurora Innovation at the beginning of 2018, financially backing the startup’s aim to have self-driving cars on the streets in two-to-five cities by 2021.
Official site: www.volkswagenag.com
1 | Toyota
Japan’s premier auto manufacturer, Toyota Motor, achieved its long-standing goal in 2017, surpassing rival Volkswagen to become the largest automotive manufacturer globally, with a net revenue of $249.9bn. According to a report by the Economic Times, this state of affairs is likely to continue, with Toyota seeing a nearly doubling of profit for the fiscal third quarter, also lifting its annual profit projection through March to $22bn, a record high for the automaker. Toyota is looking to the evolving auto market with intent to disrupt current auto-identity conventions. Head of design Simon Humphries said: “The boundaries between car makers, train makers, bicycle makers and whatever else are going to change. To suddenly think we might be moving into a future where we’re delivering cargo and mass transit at the same time, that’s a big mindset change for everybody.”
Official site: www.toyota-global.com