Profitbility per unit sale of car companies
Discussion
JohnG1 said:
Yeah but...
Capital expenditure programs, such as building a new factory, new engine, new models make this sort of analysis a bit trickier than a bar chart...
Totally agree. Clearly net profit figures matter over time but not hugely relevant at this juncture for AML where there’s huge investment in DBX. Capital expenditure programs, such as building a new factory, new engine, new models make this sort of analysis a bit trickier than a bar chart...
For what it’s worth average selling price (for AML) is hovering around the £140-£150k mark depending on the mix with specials in any given period. I think the development of that number is probably a better figure to track (along with wholesale/retail sales volumes).
RobDown said:
...... a better figure to track (along with wholesale/retail sales volumes).
I am still confused about the AML definitions of wholesale and retail.
Can anyone clarify please ?
AML is a manufacturing company which operates via a network of retail dealers. I would therefore have thought, that all their vehicle sales are wholesale ie.their dealers buy the new cars then sell them to customers in the retail market.
AML do refer to retail sales in their financial reports, but what do they mean ?
Many of AMLs specials are probably transacted directly with retail customers, but as there is an important reliance upon their retail network, do you think every direct enquiry is then allocated an appropriate dealer ? If so, it would then count as wholesale.
Perhaps the retail volume is gauged by asking dealers, how many vehicles has been sold to customers. That would then be information rather than a factual AML financial transactions.
Now you can understand why I am confused about this aspect.
Normally AML only talk about wholesale volumes as you say Jon as all the sales go through the dealers (who are independent). Even the Specials go through dealerships (they’re may be the odd exception every now and then but the likes of Zagato are done via dealers).
AML have, very recently, started to talk a little more now though about retail volumes - ie what the dealers are actually selling to customers - because that then allows investors to have a feel for whether dealers are building up stock levels or running it down.
Stock levels should be falling now but will naturally build with the DBX launch (every dealership has to buy one showroom and one demonstrator and those count as normal wholesale units for AML).
AML have, very recently, started to talk a little more now though about retail volumes - ie what the dealers are actually selling to customers - because that then allows investors to have a feel for whether dealers are building up stock levels or running it down.
Stock levels should be falling now but will naturally build with the DBX launch (every dealership has to buy one showroom and one demonstrator and those count as normal wholesale units for AML).
RobDown said:
AML have, very recently, started to talk a little more now though about retail volumes - ie what the dealers are actually selling to customers - because that then allows investors to have a feel for whether dealers are building up stock levels or running it down.
Stock levels should be falling now but will naturally build with the DBX launch (every dealership has to buy one showroom and one demonstrator and those count as normal wholesale units for AML).
Stock levels should be falling now but will naturally build with the DBX launch (every dealership has to buy one showroom and one demonstrator and those count as normal wholesale units for AML).
Thank you Rob.
The initial 'push' of new Vantages to dealers as showroom and demonstrator stock (possibly more than 2 per dealer with that model), of course contributed to the increased AML sales (wholesale) in H2 2018.
As you are aware, often it is necessary to 'dig behind' the reported figures. An example was the increase in USA sales in H1 2019. The Vantage was not on sale there in H1 2018 (the corresponding period), because of their government safety requirement (side airbags, or door bars I think).
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