AlixPartners calls 2023 auto industry profit expectations a ‘heavy lift’

AlixPartners calls 2023 auto industry profit expectations a ‘heavy lift’

Read Time:3 Minute, 39 Second

A consulting firm is warning Wall Street that an expected growth in profits for the automotive industry in 2023 may not come to fruition even as volumes increase from an extended semiconductor shortage.

AlixPartners LLP on Wednesday pointed to an analyst consensus predicting a near doubling in profit next year from 2021 to $89.2 billion across automakers and suppliers. That’s a 91% increase from $46.8 billion last year, which was roughly stable from $47.3 billion in 2018.

Stellantis NV's Brampton Assembly Plant outside of Toronto.  A consulting firm expressing caution toward Wall Street's profit expectations for the auto industry as it transitions to electric vehicles.

But raw material cost increases haven’t been fully reflected in automaker and supplier performances, said Mark Wakefield, global co-leader of the automotive and industrial practice of AlixPartners. That along with a historic transition to electric vehicles should temper expectations of profitability, he said.

“There’s major, major economic profit expectations on the backs of the automakers and suppliers, and so a lot of heavy lifting to do,” Mark Wakefield, global co-leader of the automotive and industrial practice at AlixPartners, said during a virtual presentation.

Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %

Average Rating

5 Star
0%
4 Star
0%
3 Star
0%
2 Star
0%
1 Star
0%

Leave a Reply

Your email address will not be published.

The Roadsters Return to Pomona Previous post The Roadsters Return to Pomona
“The ball is rolling” to land Helio Castroneves a NASCAR ride Next post “The ball is rolling” to land Helio Castroneves a NASCAR ride