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Luxury cars Q1 2022: diversification and management change – RccDB Cars – Automotive | Business

The global auto industry is still going through a rough patch, with sales in the first quarter of 2022 shrinking in each continent. With the negative effects stemming from the Covid-19 cases still palpable despite the media apathy of the past few weeks, supply shortages, especially for semiconductors, and uncertainties. With the Russian-Ukrainian war, the outlook remains worrisome.

March 2022 saw sales in both the US and EU drop by more than 20%. The Q1 drop is generally less severe but still significant -10% on both markets (Nasdaq, Statista, Unrae). Asia may be an exception. While Reuters report a Sales in Japan fell 14% in Januarybased on CAAMinstead of, China maintains positive momentum with growth of 10% in March and 8% overall in Q1. Notably, sales of NEVs doubled in March with about half a million units sold.

Auto market % growth in Q1 2022 / March 2022 by region


This once again shows where the difference between the large segment market versus the high-end segment is. As discussed before, and while for some the troubles are not over yet, for the “conventional winners” all looks to be smooth sailing and beyond.

Luxury Segment: Winners and Losers

5 normally, Rolls-Royce, Ferrari, Lamborghini, Bentley and Porsche, managed to post another record quarter, or at least a really strong quarter. In terms of sales, Rolls-Royce and Ferrari topped the charts, increasing their respective sales by 17% and also reporting strong financial results.

Right after Lamborghini increased its sales by 4.8% and reported positive financial results as well as operating revenue and profit 13 and 25% improvement.

Porsche and Bentley both report sales down 4.9 and 4.6% but record financial numbers signals an important focus on business performance during this uncertain time. Bentley’s revenue and operating profit improved by 41% and a staggering 162%. At Porsche, the same figure increased by 4.1 and 17.4% respectively.

table q1 2022

After a positive 2021, with a strong year-over-year recovery, thanks to the introduction of the DBX SUV, Aston Martin seems to be back in difficult waters. Sales fell by nearly 14% with only the GT segment improving, and DBX sales down 41%. In addition, although revenue increased, the financial results were not very positive.

What’s next?

The continued growth of this segment is probably due to the increase in real estate prices and stock market growth in the years 2020 and 2021. According to real estate consultants, Knight Frank these unique conditions created more than 51,000 new ultra-high net worth individuals (UHNWI)classified as those with at least $30 million in investable capital, bringing the overall figure to 610,569.

Leading automakers are responding by following current industry trends and expanding their portfolios to cover the widest possible market share.

The one who paved the way over the past two decades and is still pursuing such a strategy is Porsche. Q1 2022 confirms the Taycan as the third best-selling vehicle after the two SUVs, but above the 911, it’s an important indicator of the extent and Many people are interested in the sporty luxury car experience (and in this case, even cell phones) without being “limited” by the impracticality of the typical sports car and everyday usability.

Notably, Ferrari has been doing the same thing. If the growth rate is maintained until the end of the year, while strictly controlling sales, this number will nearly double within 9 years, from 7,000 units in 2013.

Ferrari Sales, Growth Percentage (2013-2021) and Product Range Value Proposition

ferrari chart and percentage

Products of Ferrari

Most importantly, is portfolio expansion. Since 2013, right after LaFerrari, the brand has added a 4-door line (FF, GTC4 Lusso), which will now be replaced by the Purosangue SUV, the new GT series (Roma), a more premium high-performance hybrid . (SF90 Stradale). The most recent is the new V6 Hybrid which, although specified, as an option, by more restrictive environmental regulations, does not replace the mid-range V8 (at least not yet).

Together with all of this, Ferrari ensures to remain at the forefront of its customer base with its personalized program and One Time Program, discuss in more detail as a trend here. Its latest came out SP48 Unica introduced just a few days ago.

Other brands Rolls-Royce, Lamborghini and Bentley, as discussed have successfully participated in the SUV segment, but that’s not all. Like Ferrari and Porsche, they are also about to release additional models that will expand their product line. As for Lamborghini, it will be the fourth all-electric model, which according to some representatives, could be more like a GT model. Rolls-Royce is also about to launch an all-electric Specter. And last but not least, today’s new Bentley model debuts at the top of the list, expanding the brand’s reach, but without introducing a new electric powertrain.

Other OEMs that are going through a rough patch or “losers” (figuratively related to this final stage, of course) are adopting similar strategies. But there’s more going on behind the scenes for both of them McLaren and Aston Martin seek stability.

McLaren, whose market potential has been investigated in analyze the 5 forces of the previous article, which unexpectedly did not release any reports after Q3 2021. Its range expansion has included the addition of GT to the range. More importantly, though, it’s the major refactoring.

It belongs to Last week, the announcement of the new CEO finally took place at the head of the British company after Mike Flewitt left its role. Michael Leiters will effectively start in his new position on July 1st. Prior to that, he held senior positions at Porsche and was the Chief Technology Officer at Ferrari. This important announcement follows a number of other major changes in key corporate roles within the company.

There are also now long-standing rumors about Audi’s acquisition of McLaren’s F1 team that could involve the automotive division as well. The deal was first rejected by McLaren in November, but speculations continue as ongoing discussions are not ruled out. While various media outlets are still talking about it, from the recent statements by the likes of Zack Brown, it looks like nothing will happen (at least in the short term).

Similarly, it was from a few days ago Aston Martin Leadership Change Announcement. After only two years, Tobias Moers, the man behind AMG’s rise to power, called upon by Lawrence Stroll to save the British car manufacturer, will be replaced. While Moers will continue to be close to the company’s top management, the chief executive role will go to former Ferrari Amedeo Felisa, who held the same role at Maranello from 2008 to 2016.. Along with him, another former Ferrari executive who worked at Alfa Romeo and BMW, Roberto Fedeli will join Aston Martin as new CTO. Both are from China’s Silk-FAW trying to establish a presence in Italy’s engine valley to produce electric performance cars.

amedeo felisa roberto fedeli* Amedeo Felisa and Roberto Fedeli

Aston Martin also has significant product expansion plans, but recent difficulties have left it behind the competition. Especially during the transition to hybridization and electrification. The engines located between Valkyrie and Valhalla have been significantly delayed. In an interview with GuardiansStroll himself said that Moers’ contribution was key to restructuring the company at a critical time. Now, another person is needed to take it to the next stage. While all the people involved are certainly capable people and extremely experienced professionals, only time will tell whether these rapid changes in management will be effective. positive outcome that Mr. Stroll is hoping for or not. Aston Martin has gone through a difficult period of shortages and has had a good 2021. However, the financial risks are not over yet and this first quarter does not look promising.

Between restructuring and extensive portfolio expansion, the premium segment continued to grow overall while the rest of the industry faltered. Despite the global rise of HNWI, one wonders if all the factors that contributed to the severe decline of the auto industry in 2022 will ultimately affect the luxury segment. At the moment, several companies are setting trends and taking a lot of control over the narrative and direction of the market.


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