Tight focus is key to return on sales.

Automotive News Europe,  February, 2002  by De Saint-Seine, Sylviane

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European automakers that choose a niche and avoid big mergers are the most profitable.

Porsche and BMW posted the highest rates of earnings before taxes and interest among manufacturers based in Europe, according to data from PwC Consulting.

Porsche's operating profit rate was 12.1 percent in the fiscal year ending July 31, 2001, while BMW's operating profit was 7.8 percent in calendar 2001.

By contrast, operating profits for DaimlerChrysler, Renault and Fiat Auto all declined last year to between 1 percent and 2 percent.

"Big is not always best," said Philip ...

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