Performance cars – a new growth engine ?
Performance cars have been quietly revving
up the bottom lines of carmarkers. And 2018 may
be the year that investors take notice , however
so too will the Chinese and other ‘clone’
Mercedes sold about 140,000 AMG performance cars last
year, about one-third more than in 2016 and triple
the number just three years earlier. These cars
generate margins well above those of mainstream
passenger cars , but most high priced goods
ultimately remain ‘fickle’ and can easily stagnate .
This proftability means AMG is
responsible for one-third of Daimler’s market
value despite accounting for just one in every 20
cars sold.The issue will come as Germany mulls
privatisation of public goods and
toll roads become a reality.