Guess Who Has Got the Highest Per-Car Profit: Ford, Chrysler, GM or Toyota?
Toyota overcomes Detroit’s producers in profit performance.
The automaker has earned about $2,276 on each sold vehicle in 2014. And these numbers do not include taxes. In comparison, Ford has earned only $994, when Chrysler and GM made $850 and $654 respectively.
The weak Japanese currency, Yen, may have contributed into company’s profits. The Japanese Yen cheapens the cost of country’s exports and also allows the producer to sell the vehicles for the smaller price than in the United States. Some of the companies, for example Ford, have called out federal regulators since they were not helping to crack down on alleged manipulation with currency. Morgan Stanley, the investor, tells that about $2,000 per export car returns back to one of the largest automakers in Japan as a result of the low rate of currency.
Japan has not confirmed any connection with fixing the rate of currency.
Labour costs are also a concern as GM and Ford still give out more money on producing cars than Honda and Toyota, despite a reduction in labour costs for American producers. The reduction took place not long ago. Legacy costs also put a tension on Detroit producers. Collectively they have contributed $3 billion in 2014 to employee pensions and different funds related to healthcare.
