The question of how much profit carmakers make per second sheds some interesting insight into the industry.
Motor trade insurer Staveley Head has come up with an answer after performing some very intricate calculations to find out how much the manufacturers makes per second in the business. The results were based on 15 renowned brands within the industry.
To obtain the results, Staveley Head started the process with each manufacturer’s annual takings plus the profits. Then, the numbers were divided up to provide a figure per second.
Detailed calculations show how each brand fared
Toyota made a total of £13.5 billion in profit over the previous years, so representatives from Staveley Head divided that by 31,536,000, which is the total number of seconds making up one year. The calculation revealed that Toyota made £430 per second in the last year.
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Toyota may have come out top, but other comparable firms don’t even come close to that figure. Ford made £173 profit per second, while Volkswagen made only £91. Mercedes-Benz made £255 per second on average, which was twice that of Porsche.
Number of cars sold also provides interesting overall view
The number of units sold is separate from profit but still provides a very interesting snapshot of the whole motor trade business. Toyota sells roughly around 34 cars within the space of two minutes, while Mercedes shifts nine and Porsche only sells one. VW and Ford trail Toyota, with 24 and 25 cars sold to customers every two minutes respectively.
According to BBC News, Scotland’s biggest car dealership has reported a reduction in profits. In its 2017 accounts, Arnold Clark’s pre-tax profit has dropped from £125m to £107m. New car sales fell during the last 12 months, but a rise in sales of used cars saw revenue climb 7%.
Outside of car brands, Apple leads the way for global brands by a sizable margin, enjoying $1,444 profit per second. That equates to around $5.2 million per hour or $127 million each day. That’s based on 2016 net income figures.
The motor trade figures make for interesting reading and give a fascinating insight into the industry.