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Offline amgsl55

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AFR:

The Volkswagen brand delivered 238,000 of its sinuous vehicles last year and posted an operating profit of 3.9 billion euros ($5.4 billion), up 14 per cent from 2015. Put those numbers together and it's on pace to net about $US17,250 a car, up 9 per cent.

In short, every time Porsche sells a 911 sports car or one of its Cayenne SUVs, it could take the profit alone and go buy a brand new Chevy Cruze.

Its Teutonic peers don't have nearly as much profit punch. Daimler pocketed about $US5000 a vehicle last year, roughly the same margin Bayerische Motoren Werke (BMW) has been managing.

Part of the money magic is simply price. Porsche doesn't make cheap cars. Even luxury players like Mercedes occasionally offer more pedestrian versions at narrower margins to get aspiring buyers into the family. And make no mistake, Porsche customers are paying a premium for the brand's reputation.

Ferrari knows this game well. Its operating profit equates to almost $US90,000 a vehicle. But about 30 per cent of Ferrari's business comes from engines, key chains, amusement parks, and other things that don't have wheels. What's more, the company makes only about 8000 cars a year, scrimping on supply to keep prices high.


The company's profit spike has coincided with the launch of its most affordable model. Hitting dealerships in 2014, the Macan SUV now accounts for roughly 40 per cent of Porsche sales. Supplied
Porsche isn't that precious any more. In terms of product, by now it's about one-tenth the size of BMW, and in the past three years has boosted its annual output by 47 per cent. That ramp-up comprises the company's new 911 GT3 sports car, which commands $US144,000 and up. Plus, the company's profit spike has coincided with the launch of its most affordable model. Hitting dealerships in 2014, the Macan SUV now accounts for roughly 40 per cent of Porsche sales.

These days "the little tiger," as they call the Macan around the shop, starts at a prosaic $US47,500. But few people who spring for a Porsche settle for basic ó it'd be like going to a steakhouse and skipping the sides. The add-on Macan goodies step up as quickly as paddle-shifts on the car's PDK transmission: big 21-inch wheels ($US5400), natural leather seats in "espresso" ($US4920), butt-warmers front and rear ($US1060), running boards ($US1250), sport tailpipes ($US950), whitewashed oak trim ($US1790) and, naturally, a custom paint color to match your lover's eyes ($US6520).

"We're concentrating on delighted customers," Oliver Blume, chairman of the Porsche executive board, said in a statement.

The whole process is customised and emotional, the goal of any luxury brand these days. People don't just want a fancy scarf or an opulent handbag any more; they want their fancy scarf, their ostrich-skin purse óbecause, well, these days they can get it. TAG Heuer pitches its new smart watch as available in 4000 configurations. The price range is $US1650 to $US17,000. It's do-it-yourself market segmentation.

Porsche's revenue breaks down to almost $US99,000 per vehicle. One of the few options that's still free: factory pickup. If you're just joining the club, you might want to skip the espresso seats and buy a plane ticket instead.



Offline looney


  • Joined: Mar 2007

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I remember an article like this a few years ago and I think the profit per unit was higher back then



Offline 360c

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I remember an article like this a few years ago and I think the profit per unit was higher back then

I tried to find the relevant article without success; but I can recall that Porsche is the most profitable car company on earth per unit sold. They make 250k Euro per year on currency hedging strategies and the cost of production of the most expensive normal model (911 Turbo S) is only about $10k more than the cost of production of the cheapest 911 variant; but the selling price and resulting margin is increased by something like a factor of TEN.



Offline dkabab

I remember an article like this a few years ago and I think the profit per unit was higher back then


Quote
Volkswagen Pockets $23,000 When You Buy That New Porsche

One could forgive Volkswagen (VOW:GR) executives for only wanting to drive their fleet of Audis, Bentleys, Porsches, and Lamborghinis. The German giantís luxury offerings are outperforming its pedestrian passenger cars, both on roads and off.

For every Porsche it sold last year, Volkswagen booked about $23,200 in operating profit, for a margin of 18 percent, according to an annual report it released this morning. Bentley wasnít far behind Porsche, and the Audi brand, which includes the Lamborghini badge, posted $5,200 in profit per vehicle at a 10 percent margin. That compares with an $850 return, at a 2.9 percent margin, for one of VWís mass-market machines, such as the Jetta or Passat.

https://www.bloomberg.com/news/articles/2014-03-13/volkswagen-pockets-23-000-when-you-buy-that-new-porsche



Offline Fil-Ski


  • Joined: Feb 2009

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German carmaker Porsche said Wednesday it would celebrate a record year with a one-off payment to workers of up to exactly 9,111 euros, a nod to the its iconic 911 sports car.

https://www.geo.tv/latest/135241-Porsche-celebrates-record-year-with-911-bonus-payout



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