I wonder where Ferrari ranks in all of this.... http://www.leftlanenews.com/2007/01/22/report-porsche-profits-28000-per-car/
Porsche denies profit per car : http://www.leftlanenews.com/2007/01/25/porsche-denies-per-vehicle-profit-figures/
Interesting articles, thanks for the post. Even if Porsche made only $10k per car, that would still be impressive. Their mass production capability surely helps boost profits. Hurts to know there's such a mark up, but it won't change.
Curious to know if that includes all corp profit / # cars produced. Specifically, does it include merchandise (t-shirt / hats...) and licensing fees (hotwheels, r/c cars...) Consider what ferrari's profit per car would be if all merchandise and licensing fee's were included in the profit. I suspect ferrari makes more from T-shirts / hats /calanders / etc than from cars.
who cares if its 28k per car.... Im sure that doesnt account for things such as advertising,cost of facilities,racing costs,R&D,Legal,payroll,benefits and evrything else not tied to the actual cost of production. Ill still buy porsche
They seem to be selling at that price. Does anyone here sell their product or service substantially below whatever the market will bear? Or maybe enough less than the competition to get a piece of their market share? Isn't that what they are doing?
My guess is that the original discloser made Porsche look so bad that they tried to talk down the numbers so that it didn't look so bad. Given those original numbers Porsche make almost 10 times as much on it's cars than even BMW!
Absolutely. I remember when Ferrari gave Hotwheels the exclusive rights to make all Ferrari toy cars. That was a huge deal and IIRC a retail analyst speculated that more money would be made selling the toy Ferrari's than the actual ones.
I assume it includes all those things if they are using profit as the benchmark. Profit should take those expenses into account. MARGIN does not.
Other major brands like BMW have all of those same costs and still manage to make a net profit but 28K per car is crazy. That just shows you how much you are paying for the name versus the car.
Sounds like accounting conventions, and simplified calculations by the media, resulted in the $28K. But... I can see Porsche being very profitable. Their entire range of cars shares a lot of componentry (one engine across the range, albeit tuned/tweaked), their prices are high, and if you've ever looked at their options list you'll notice you pay for pretty much anything that takes the car beyond very basic.
They've pretty much always been the most profitable in the industry. They don't make many engines as pointed out by bullfighter and the option list can quickly add thousands (even tens of thousands) to your car. I could easily add 10k to a porsche in options
this is what i have always heard..and i hear porsche engineering or whatever its called also does a lot of business... stock quote... http://finance.yahoo.com/q?s=POR3.DE
I read it to mean it included all of the costs. As in $28k in clear profit per vehicle. It's amazing compared to other manufacturers, but when you look at a $90k 911 it's not a stretch to think it could have been made for $62k.
