Report: Porsche profits $28,000 per car [Now who said porsches were not over priced]

[1Day]

Wow, this is incredible, check it out in this link.

Originally Posted by Leftlane news

A new study has found that German sports car maker Porsche earns an incredible average of $28,000 in profit on every vehicle it sells. The figure — printed in Germany's Welt am Sonntag newspaper, citing a study by B&D Forecast — dwarfs the per-car earnings of virtually any other automaker.

Comparatively, luxury and sports car maker BMW makes about $3,200 per car. Audi nets a less impressive $1,580, and Chrysler and Volkswagen earn just $900 and $400, respectively.

[aniguchisan]

Answer = Carrera GT, Cayenne Turbo S and 911 GT2/3/Turbo

[chanapli]

People who buys those costly machines never see VFM. I wonder how much RR and Bently makes out of one car sold.

[Sahil]

If only they keep profit margins like other car markers, we would get a cayman at a price of a boxter!

[Mpower]

Porsche uses mainstream technology like steel unibodies and also shares parts from VW. very clever and a lesson for everybody else.

[GTO]

Well, keep in mind that they have also received a sizeable dividend from VW which added to the bottomline. Nevertheless, Porsche is by far the most profitable car maker. I remember reading an article 2 - 3 years back where their earnings were $18,000 per car. Porsche reportedly makes a lot of its $$$ also from options packages, the 911 turbo and the Cayennes.

Can you imagine this as the company that almost faced bankruptcy in the 90's?

[msdivy]

They can offer buy 2, get 1 free and still make profits !
I wonder how much our car manufacturer make on each of their models !

[iraghava]

Well if they can get away with charging so much & continue to improve their products & technology then good for them. I personally am biased towards Porsche & hence have no objections to it!!

[sbasak]

Ultimately it's the buyer's choice whether he wants to buy Porsche or not!

I can't blame them - after all they are doing business. 10% profit margin is not something robbery. Our soft drink bottles cost Rs 10 and they made profit of over Rs 6/7 per bottle!
Some branded watches like Gucci, Omega, TagHeuer, Rolex etc. can cost over Rs 1 lakh.

Cars like Porsche, Lambo, Ferrari, Aston etc. are not sold as just cars but like brands (to give buyers I have something you don't feeling) - so they demand more money

[tsxei]

28K is a lot of money. But what would be more interesting is to compare the profit/car as a percentage of the cost of the car rather than absolute numbers. I bet Toyota, Honda or Hyundai would come out on the top then.

[1Day]

Originally Posted by sbasak

Ultimately it's the buyer's choice whether he wants to buy Porsche or not!

I can't blame them - after all they are doing business. 10% profit margin is not something robbery. Our soft drink bottles cost Rs 10 and they made profit of over Rs 6/7 per bottle!
Some branded watches like Gucci, Omega, TagHeuer, Rolex etc. can cost over Rs 1 lakh.

Cars like Porsche, Lambo, Ferrari, Aston etc. are not sold as just cars but like brands (to give buyers I have something you don't feeling) - so they demand more money

BTW porsche usually range from 75-200k max with an avg of about 125k, so you are looking at about 20+% profit margin. But i agree watches have a retail margin of 55% and above that the margin that the manufacturers have is about 10-15%. 1 L for a watch is quite cheap if you ask me, just like cars watches get well into very high price range the most expensive watch is more expensive than the most expensive car. The only diff is there is no customs duty being put on them when sold in india else ppl could easily be wearing a C class or an S class on their hand.

Anyhow I wouldnt include Porsche in the same league as Ferrari or Lambo, they are much smaller and focused manufacturers making about 2500 - 5000 cars anually where as porsche makes well over 70,000 i think. so dont include porsche in the exotics category..

[moralfibre]

Originally Posted by chanapli

I wonder how much RR and Bently makes out of one car sold.

Exactly what can be thought of on the huge profit margins Porsche makes. They have to run dealerships and offer quality service in a country where they dont sell more than 10 - 20 cars a month?

[ported_head]

Originally Posted by 1Day

Anyhow I wouldnt include Porsche in the same league as Ferrari or Lambo, they are much smaller and focused manufacturers making about 2500 - 5000 cars anually where as porsche makes well over 70,000 i think. so dont include porsche in the exotics category..

Yeah, Porsche is right up there, with Hyundai, aren't they? The fact that they are powerful, fast and pretty much unaffordable, wouldn't have any claims to lay to being exotic, nah?

[1Day]

Originally Posted by ported_head

Yeah, Porsche is right up there, with Hyundai, aren't they? The fact that they are powerful, fast and pretty much unaffordable, wouldn't have any claims to lay to being exotic, nah?

You get offended very easily, why cant their be a ground in between the exotics and the regulars well you have several categories in car business and porsche(Except the GT2 and Carrera GT dont fall in that category).

Everyday car eg. Honda, Hyundai, Toyota, Nissan
Luxury Car Infiniti, Lexus, Acura
Super Luxury / Sport Car Brands MB, BMW, Porsche
Exotics / Super Luxury Aston Martin, Maserati, Bentley
Super Exotics / Absolute top luxury Ferrari, Lambo, Maybach, RR
Hyper Exotics Pagani, Bugatti, Saleen, Koienegsegg etc

Obviously some manufacturers from the lower class can make cars in the upper class, but that doesnt make them an upper class car manufacturer, porsche is a sports car manufacturer and I like everything in their line up above the GT3(GT3, Turbo, GT2, GT).

And no porsche is not totaly out of people's price range else there wouldnt be 36000 911s sold yearly as oppose to a Ferrari or a Lambo which sell in less than 1/10 annual range.

[iraghava]

No of course not PH! I bet there are hundreds & thousands of 959's & Carerra GT's doing the rounds of the car supermarkets right now!!

I would rank Porsche as high as Ferrari & Lambo if not higher. They might not have as much charisma but they do have much more engineering prowess & reliability than both the brands combined. If you however choose to equate character & heritage with the number of times the car breaks down on you then that's another factor altogether.

And just for the record how many times have Ferrari & Lamborghini won International races or championships? If we consider Lemans or the other 24hr races then Porsche beats both of them combined by an unbelievable margin. They infact have the record for the maximum number of Lemans races won by a manufacturer ever! Apart from F1 Ferrari stands nowhere & the less said about Lambo in this matter the better.