Survey: What will be the biggest factor in the financial results of carmakers in Q3?

03 August 2018

Survey: What will be the biggest factor in the financial results of carmakers in Q3?

03 August 2018

Vehicle manufacturers are currently updating investors and the press on their profits and losses for the second quarter, and the first half, of 2018.

While many are posting profits, some manufacturers are doing so with warnings about their results expected in Q3 2018. This takes into account the period from the start of July to the end of September.

This period coincides with new registration plate sales in the UK, which is currently experiencing fluctuations due to uncertainty over Brexit and economic impacts as a result. With the UK getting closer to leaving, the end of September will leave the country only another five months as part of the EU; and manufacturers need to prepare for any eventualities.

This quarter will also see the introduction of WLTP for all vehicles on sale, rather than just new models that require type approval. Daimler has already suggested that the costs to get vehicles through the new emissions test will impact their Q3 profits, while supplier Valeo has also highlighted it as a factor in its future results and Volkswagen is expecting issues.

Manufacturers are also suffering from the implementation of new incentives in China, while the uncertainty surrounding the US position on introducing charges for imports of vehicles will also cause issues. Then there is the continued decline of diesels, the development of EVs and the changing ownership landscape.

Autovista Group wants to know what will be the biggest impact on financial results for carmakers in the period to the end of September. Will WLTP introduction be a hit, or will the decline of diesel sales be the largest financial factor? Could the uncertainty over Brexit hit profits or will tariffs introduced elsewhere play a part?