The Profitable Business of Commercial Vehicles

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Commercial Vehicles,Lorries,Vans

Commercial vehicles, such as lorries, vans, and trucks, are not only essential for supply chains and deliveries but also highly profitable for manufacturers.

I think that if you splashed out $100,000 for a vehicle you would usually take delivery of something pretty flash—a Porsche, say. In fact, many buyers of wheels at that price care less about the badge on the bonnet and more about how much the thing costs to drive and how much weight it can carry. For this is also the price of a large lorry. These commercial vehicles, together with smaller trucks and vans, keep supply chains humming and deliveries moving.

They also make lots of money for their makers. In 2023 vans accounted for a third of revenues of €190bn ($207bn) at Stellantis (whose largest shareholder, Exor, part-owns’s parent company). Ford Pro, the American car giant’s commercial-vehicle arm, made a net profit of $7.2bn on sales of 1.4m units, compared with $7.5bn at Ford Blue, its car division, which sold twice as many vehicles. Daimler Truck, the world’s biggest manufacturer of medium-sized and large lorries, earned revenues of €56bn last year. Lorries made by Volvo and Daimler rake in margins typical of an upmarket carmake

 

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