Lower profit margins expected for European OEMs

Europe’s auto manufacturers may be looking at a lower profit outlook after seeing earnings increase in the first half of the year, as sales recovered from the pandemic. Demand continues to strengthen, but Forbes notes that margins “will be under pressure as rising raw material prices increase costs and chip shortages block profitable sales.” Both Toyota and Volkswagen said they would reduce their output due to the chip shortage, which appears to be getting worse. (Source: Forbes) Read the original article.

About Todd Phillips

Todd Phillips is the editorial director of Universus Media Group Inc. and the editor of Canadian auto dealer magazine. Todd can be reached at tphillips@universusmedia.com.

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