Who Was the Top 'Jangsagkun' in Imported Cars Last Year?

Analysis of Audit Reports from 8 Importers
Most Show Mercedes-Benz as No.1, BMW's Upward Trend Stands Out
Operating Profit: Mercedes-Benz Leads with 281.8 Billion KRW
BMW Tops Dividend Payments and Growth Rate
6 Companies Pay More Cash Dividends Than Earnings
Volvo Ranks First in Dividend Payout Ratio Despite Net Profit Decline

Last year's business performance report of imported car companies has been released. Mercedes-Benz had the best rankings in various categories, but BMW showed strong pursuit. Most companies paid dividends higher than their net income.

According to the audit reports of eight importers (Mercedes-Benz Korea, BMW Korea, Ford Sales Service Korea, Porsche Korea, Volkswagen Group Korea, Stellantis Korea, Tesla Korea, Volvo Cars Korea) posted on the Financial Supervisory Service's electronic disclosure system on the 15th, Mercedes-Benz recorded the highest operating profit among imported car companies last year with 281.8 billion KRW. BMW followed with 144.8 billion KRW. Ford ranked third with 42.1 billion KRW, and Porsche was fourth with 36.1 billion KRW.

BMW topped the dividend payments last year. The company paid 215.3 billion KRW in dividends to its major shareholders. Mercedes-Benz paid 177.9 billion KRW in dividends. Next were Stellantis (63.9 billion KRW) and Porsche (38.6 billion KRW). Volkswagen Group, which set the lowest dividend, paid 15.5 billion KRW to major shareholders despite recording a net loss of 26.6 billion KRW last year. BMW also had the largest increase in dividends compared to the previous year, raising dividends from 70 billion KRW in 2021 to 215.3 billion KRW last year (207% increase).

Importers that paid dividends both in 2021 and last year were Mercedes-Benz, BMW, and Porsche. Looking at the total dividends over two years, Mercedes-Benz paid the most cash to shareholders with 325.8 billion KRW.

Among the eight companies, except for two (Volkswagen Group and Ford), the others paid dividends to overseas major shareholders equal to or exceeding their net income last year. The dividend payout ratio (dividends as a percentage of net income) was highest for Volvo at 720%. Stellantis ranked second with 329%. Volvo recorded a net income of 3.5 billion KRW in 2021 and did not pay dividends then. However, despite a net income of 2.5 billion KRW last year, it paid 18 billion KRW in dividends. BMW was third with a dividend payout ratio of 227%, followed by Porsche (150%) and Mercedes-Benz (100%).

Companies with good operating performance are analyzed to have sold either a large number of vehicles or many expensive cars. Imported car companies import fully assembled vehicles produced overseas without domestic factories. Since there are no production costs, higher sales volume generally leads to better performance. According to data from the Korea Imported Automobile Association, Mercedes-Benz ranked first in imported car sales last year with 80,976 units. BMW (78,545 units), Volkswagen Group Korea (38,371 units), Tesla Korea (14,571 units), and Volvo Cars Korea (14,431 units) followed.

Even when selling the same vehicle, selling at a higher price yields profits. Porsche is a representative example. Although the company’s sales volume is smaller compared to others, its operating and net profits ranked third among the eight companies. Entry-level models within the brand, such as the 718 and Macan, start at over 100 million KRW.

However, there are exceptions. Ford recorded the third highest operating profit but struggled with sales volume. The company’s sales, including Lincoln, decreased from 10,447 units in 2020 to 10,348 units in 2021, and further down to 7,848 units last year. Expensive vehicles also did not sell well. Lincoln, Ford’s premium brand, sold 2,548 units last year, ranking 16th among 25 brands in the Korea Imported Automobile Association.

This phenomenon is largely due to reduced selling and administrative expenses rather than improved profitability. Selling and administrative expenses, which reached 73.5 billion KRW in 2021, decreased to 41.9 billion KRW last year. In particular, warranty expenses dropped from 50.7 billion KRW to 10.5 billion KRW.

These costs are related to sales volume. Warranty expenses are costs anticipated in advance for future after-sales service following vehicle sales. In other words, the more vehicles sold, the higher the warranty expenses. Conversely, fewer sales lead to lower warranty expenses.

In the statistics of this audit report, Korea Toyota Motor, Honda Korea, and Jaguar Land Rover Korea were excluded due to different accounting standards compared to the eight companies.

This content was produced with the assistance of AI translation services.