Porsche profits out of control!
01-22-2007, 04:30 PM
#1
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Porsche profits out of control!
Sheesh! Talk about getting your head ripped off for the badge!!!!
"A new study has found that German sports car maker Porsche earns an incredible average of <big><b>$28,000 in profit</b></big> 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. <b>Audi nets a less impressive $1,580</b>, and Chrysler and Volkswagen earn just $900 and $400, respectively."
Even BMW makes twice what Audi does, so comparisons of facilities, range of offerings, and warranty coverage take on a new aspect. Does Porsche really offer 26.5 times better service than the best Audi store?
"A new study has found that German sports car maker Porsche earns an incredible average of <big><b>$28,000 in profit</b></big> 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. <b>Audi nets a less impressive $1,580</b>, and Chrysler and Volkswagen earn just $900 and $400, respectively."
Even BMW makes twice what Audi does, so comparisons of facilities, range of offerings, and warranty coverage take on a new aspect. Does Porsche really offer 26.5 times better service than the best Audi store?
01-22-2007, 04:38 PM
#3
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Cayenne sales have dropped off this past year.
<ul><li><a href="http://www.theautochannel.com/news/2007/01/03/032836.html">http://www.theautochannel.com/news/2007/01/03/032836.html</a</li></ul>
01-22-2007, 04:54 PM
#5
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While dealers do get some kind of kickback even if they don't get holdback *IF* they
meet or exceed certain requirements, it's not something a customer can use a negotiating tool since they respresent a single sale, and those kinds of bonuses are typically based on not only sales volume, but also sales of a particular model and CSI scores. One person - or even several of their friends and family are not enough of an influencing factor.
Consumers are stuck with dealing with the invoice and demand for a product. To do otherwise would be like asking the supermarket to discount milk to what it costs the farmer to produce it.
Obviously demand for the Porsche product is high, and they have parlayed that image into fat margins. That's what a successful company does. If they suddenly become undesirable, then that shifts more control into the consumer's hand.
I don't have a break-down of where the money goes, but they did buy another chunk of VAG recently, giving them majority control.
Consumers are stuck with dealing with the invoice and demand for a product. To do otherwise would be like asking the supermarket to discount milk to what it costs the farmer to produce it.
Obviously demand for the Porsche product is high, and they have parlayed that image into fat margins. That's what a successful company does. If they suddenly become undesirable, then that shifts more control into the consumer's hand.
I don't have a break-down of where the money goes, but they did buy another chunk of VAG recently, giving them majority control.
01-23-2007, 11:45 AM
#7
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I wonder how the numbers change if you look at profit as a % of MSRP...
No doubt, Porsche is still in the lead, but I tend to think the numbers would become closer if price were factored into the equation. I would expect a more expensive car to return a higher profit, just not to this extreme.
It would also be interesting to see what percentage of each car maker's profit is attributed to base price vs added options. Again, Porsche is notorious for their laundry list of available options, which probably contributes significantly to their numbers.
It would also be interesting to see what percentage of each car maker's profit is attributed to base price vs added options. Again, Porsche is notorious for their laundry list of available options, which probably contributes significantly to their numbers.
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01-23-2007, 12:52 PM
#8
Figure it as the price to joining a more exclusive group
Too many BMW's, too many Audi's out there. Almost too many Porsche's out there too.. but the jump to a Ferrari, Lambo, or Aston is a bit much for some.. and perhaps a bit less practical to maintain.
Alternatively, I guess one could take what they would have paid and try to mod their BMW/Audi into the realm of being custom/uniquely identifiable to what the Porsche will do for you. Porsche will do 2wd or 4wd, they'll do mid engine or rear engine, they'll do any colour/combo you want, they'll add all sorts of features/materials to meet your whimsical desire.. and honestly, service for Porsche owners seems to be better than my experience with bringing the BMW or Audi in.
Alternatively, I guess one could take what they would have paid and try to mod their BMW/Audi into the realm of being custom/uniquely identifiable to what the Porsche will do for you. Porsche will do 2wd or 4wd, they'll do mid engine or rear engine, they'll do any colour/combo you want, they'll add all sorts of features/materials to meet your whimsical desire.. and honestly, service for Porsche owners seems to be better than my experience with bringing the BMW or Audi in.
01-23-2007, 01:27 PM
#9
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The Cayenne V6 is the least expensive Porsche at $42K
It's the options that really run up the price. The V8 costs $58K before options, and the turbo $112K.
For that base Pepper, you can choose among about 140 possible options before you even work on the colour! An armrest with Caynenne logo is $415!!! A leather headliner is $3K!!!!! So if I throw the kitchen sink at the car and try not to duplicate some options that come in packages, that 6 cylinder Pepper will cost $119,000!!!!!!
The VW Touareg from which 78% of the Cayenne is based upon, starts at $37K. If I throw the kitchen sink at it (14 options available), I get $52K.
The larger but still Touareg based Audi Q7 Premium version starts at $46K. Loaded to gills the price climbs to $69K.
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The upcoming Panamera also uses a VAG chassis, so investment and risk are minimized.
For that base Pepper, you can choose among about 140 possible options before you even work on the colour! An armrest with Caynenne logo is $415!!! A leather headliner is $3K!!!!! So if I throw the kitchen sink at the car and try not to duplicate some options that come in packages, that 6 cylinder Pepper will cost $119,000!!!!!!
The VW Touareg from which 78% of the Cayenne is based upon, starts at $37K. If I throw the kitchen sink at it (14 options available), I get $52K.
The larger but still Touareg based Audi Q7 Premium version starts at $46K. Loaded to gills the price climbs to $69K.
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The upcoming Panamera also uses a VAG chassis, so investment and risk are minimized.
01-23-2007, 01:30 PM
#10
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Exclusive? They sold 36,000 cars last year. 40 years of the same design and the place is flooded
with them!
For $28K in profits overall, they had better offer many times over the service than the $1500 of the Audi, or $3200 of BMW.
For $28K in profits overall, they had better offer many times over the service than the $1500 of the Audi, or $3200 of BMW.