The UK economy is on the brink of recession, and similar concerns apply to the US, but not to the makers of the world’s most exclusive cars.
While many of us close our shutters in preparation for skyrocketing inflation, skyrocketing food prices and astronomical utility bills, the post-pandemic super-rich continue to drive luxury cars. So much so that by 2024 many of them will not have a car.
A new boom in orders for attractive cars was two years ago. After months of Covid lockdowns and restrictions, the rich are said to have adopted the mentality that life is too short and have decided to increase their frivolous spending.
And this trend will continue into 2022, despite the rather bleak economic picture.
Lamborghini’s half-year financial report says the first six months have been record-breaking in terms of sales, revenue and profitability, with the brand selling off every car it planned to build by 2023.
Global deliveries of its vehicles totaled 5,090 units in the first six months of the year (a 5 percent year-on-year increase), of which 61 percent came from the Urus Super SUV, which includes Lamborghini-powered supercars such as the Huracan and Aventador. far surpasses the most famous ones.
In terms of financials, January-June sales reached €1.33bn (£1.12bn), up 30.6% on the first six months of 2021. from £211m) to €425m (£358m).
“Despite ongoing uncertainty due to the geopolitical situation, we have completed an excellent first half of the year,” CEO Stefan Winkelmann said in the company’s current quarterly report.
“The outlook is just as positive, with orders already covering all production for 2023.”
Paolo Poma, CEO of Automobili Lamborghini added: “This is a very challenging time, but Lamborghini is managing it well with a clear long-term strategy supported by a strong brand appeal.
“First half results underline the positive momentum and reinforce our confidence that we can close 2022 with a significant increase in earnings compared to the previous year.”
Just 20 miles down the road from Lamborghini’s headquarters in Sant’Agata Bolognese, Ferrari claims to have had the same success.
Signed at its Maranello headquarters in Modena, the semi-annual financial report said the company beat earnings forecasts and placed record orders in the second quarter of 2022, driven by a 62 percent rise in demand in the Americas.
Possibly the most iconic automotive brand in the world. Total shipments from April to June rose 29 percent to 3,455 engines, while shipments to China more than doubled to 358 units.
With a growing business driven, in part, by increased demand for the Portofino M and F8 family models, Ferrari has been pleased to raise its full-year guidance to an adjusted annual profit of €1.70bn (£1.43bn). sterling) to 1.73 billion euros (1.46 billion pounds).
“The quality of the first six months and the resilience of our business enable us to improve our outlook for 2022 across the board,” said CEO Benedetto Vigna.
“Net orders also reached a new record high in 2018. [second] Quarter,” added Vigna, who took over at Ferrari in September last year.
Like rival Lamborghini, excess demand for its high-end vehicles means that much of its existing lineup is now sold out to new customers looking to try the iconic Rosso marque for the first time.
And not only Italian brands are successful.
Crewe-based Bentley said its first half operating profit more than doubled in the first six months of this year, helped by more vehicle personalization as sales in Europe (33% up) and the UK (up 44%) increased significantly. cents), despite ongoing global economic uncertainty.
The company reported an operating profit of €398m (£335m) in the first six months of 2022, compared to €178m (£150m) in the same period last year and full-year profit of €389m in 2021. euros (£327 million). million). .
“Despite ongoing global economic volatility, it is encouraging to see Bentley show financial strength as we reinvent the company,” CEO Adrian Hallmark said in a second-quarter statement.
Global sales rose almost 3% to 7,398 units from 7,199 in the first half of 2021, and sales per car rose nearly 15% to €213,000 (£179,000) as wealthy customers took advantage of the brand’s extensive customization program .
Not all luxury car brands are booming – just ask Aston Martin…
Britain’s Aston Martin hasn’t had the same financial success as some of its peers, and it showed losses quadrupled in the first half of 2022 in its latest financial report.
The luxury brand confirmed that its pre-tax loss rose to £289.8m in the first half, up from £71.1m in the first six months of 2021.
The skyrocketing losses were attributed to currency fluctuations on US dollar-denominated debt and higher interest payments, while disruptions to the supply chain and logistics also impacted the company’s business in its largest market, the Americas, where sales fell. by about a third.
This offset the increase in demand in all other regions and led to an 8 percent drop in total wholesale volume to 2,676 units. And this despite the fact that Aston Martin completely sold out its sports car and GT series next year.
Orders for the DBX, the brand’s first luxury SUV, were also up 40%, but a shortage of parts kept the company from delivering 350 vehicles to customers in the second quarter, costing it more than £80m in cash.
The brand is sticking to its full-year forecast, hoping that the supply crunch will ease in the second half of 2022 and demand for its vehicles will remain strong.
Production of the new V12 Vantage and DBX 707 models will also increase over the next six months, as will the production of two new super-exclusive vehicles, the DBR22 and V12 Vantage Roadster.
There is also strong demand for the group’s Valkyrie, a limited edition hybrid hypercar developed in collaboration with the Red Bull F1 Racing team.
Source: I News
I’m Jeffery Bryant, and I’m an experienced author specializing in automobile news. For the past several years, I have been working as a writer in a well-known news website. During this time, I’ve written hundreds of articles covering automotive trends and developments both nationally and internationally.