Porsche one of the most profitable brands!

[Equinox]

Porsche Posts $33,200 Average Profit Per Vehicle
Nearly 10x Greater Profit Per Vehicle than BMW

Porsche earlier this week revealed that Porsche, one of the most prestigious names in the automotive industry, is by far the most profitable automaker on a vehicle by vehicle basis. Porsche makes an unheard of €21,799 profit on each car it sells! This isn't to say that Porsche is making €21,799 ($33,198 CAD) straight up on every vehicle it makes, but rather that it earns variable profits, with some more (Cayenne Turbo S) and some less (Boxster). To see just how badly Porsche blows other automakers out of the water, have a look at these figures. BMW makes €2,475 ($3,769 CAD) for each car it sells - a handsome figure, no doubt. Toyota pulls in an average of €1,684 ($2,564 CAD), while Audi makes €1,580 ($2,406 CAD). DaimlerChrysler (including Mercedes-Benz and Smart) makes €708 ($1,078 CAD), and VW makes just €332 ($505 CAD) per vehicle. The study, which looked at the company's finances over 2005-2006 financial year, also revealed that Porsche sold 97,000 units and had a record gain of €2.11 billion ($3.21 bn CAD) before taxes.

No doubt, the development costs of the Cayenne (shared with Volkswagen) and the Cayman (shared with the 911 and Boxster), plus the shared components amongst all of its sports cars has some influence over profitability, but it's not like BMW, Audi and every other manufacturer doesn't share components to take advantage of economies of scale. More precisely, these figures reveal how profitable Porsche's auto operation really is. It's no wonder the brand was in a position to purchase such a large share of Volkswagen Group.

In other Porsche-related news, Motor Authority reports that the almighty 911 is about to receive an update for 2008. Exterior changes - if there are any - will be extremely minor with subtle tweaks here and there. The main update that one should expect to see for the '08 911 is the introduction of the DFI direct fuel injection system that made its debut on the Cayenne sport utility vehicle at Detroit. In The Cayenne, Porsche posted gains in power of between 5 and 25 hp, depending on model, and drops in fuel consumption to the tune of 10-15 percent. These changes aren't exactly monumental we admit, but in the case of the 911, more power is never a bad thing.
The update could also mark the introduction of the long-awaited twin-clutch gearbox for Porsche.

http://news.en.autos.sympatico.msn.c...mentid=2644530

[Mr.Tiv]

That's obscene. They're making far too much money; I'm jealous.

[Jack_Bauer]

In other interesting Porsche/German car manufacturer news, a top EU legal official has revealed that the so-called "Volkswagen Law" that prevents other companies making takeover bids is in contravention of European Law. This law has been considered to be the major stumbling block in Porsche's plan to take over VW. If the final results of the investigation back up the Advocate General's initial findings then that barrier will be removed and Porsche will be free to bid as it sees fit (if it wants to/can afford to of course). So it could see the most profitable German manufacturer in control of the largest German manufacturer. That'll have BMW and Mercedes (Daimler-Chrysler) quaking in their boots.

Top EU court finds against VW law

A German law that protects Volkswagen from takeovers breaks European Union rules, a top court official has found.

The advocate general, one of the eight on the European Court of Justice, said the so-called "Volkswagen Law" wrongly prevented the free flow of capital.

Under the law, any shareholder in the carmaker cannot exercise more than 20% of the firm's voting rights, regardless of their level of stock holding.

The initial finding is expected to become the court's final ruling.

This is due within four to six months time.

Although the initial opinion is not binding, the European Court of Justice backs an advocate general's initial findings in about 80% of cases.

State control

The Volkswagen Law was put into place when the carmaker was privatised in the 1960s.

It allowed VW's home region, the state of Lower Saxony, and the federal German government to prevent the risk of foreign takeover and continue to have a say in any politically sensitive decisions, such as job losses.

Today, Lower Saxony continues to own a 20.8% stake in the firm, which also gives it two seats on VW's important supervisory board.

Advocate General Damaso Ruiz-Jarabo said in his ruling that the current German legislation wrongly "strengthens the position of the Federal Government and the Land of Lower Saxony, preventing any intervention in the management of the firm".

VW has declined to comment on the interim court judgement, but its largest shareholder, fellow carmaker Porsche, which owns a 27.4% share, said it welcomed the ruling.

Analysts were divided on whether Porsche might launch a full takeover move on VW if and when the full Court of Justice finds against the Volkswagen law.

The European Commission first complained about the legislation in 2004.

VW shares rose nearly 1% after the ruling was announced.

[The_Canuck]

There the most profitable because everything costs so much and people are willing to buy it Long live Porsche!

Porsche fully owning VW would be interesting...

[Kitdy]

Porsche is sick. But their high profits kinda enrage me. They should sell their cars for even cheaper (relatively to Ferrari and Lamborghini) and they should RE-ENTER LE MANS AT THE TOP LEVEL. I love Porsche - but lovers are frequently the most critical. Porsche should own VW. Then, Porsche would own Lamborghini. That would be funny to me.

[coolieman1220]

cheaper porsche's NICE!

[Ferrer]

Noy exactly unexpected. And in a way some Porsches are a bit of bargain...

However I read somewhere that this isn't the profit Porsche actually makes per car, because what they apparently did was take Porsche's profit and divide it by the number of cars they make. That's not accurate becuase some of Porsche's profit comes from finantial operations and issues actually not related with the actual cap production.

[jediali]

people say the cayenne is there to make the company profitable...do the 911s, caymens and boxters need the cayenne to survive?...doesnt seem so.

[mikelzapi3]

the same way that apple needs the iPod

[Ferrer]

the same way that apple needs the iPod

I don't think the iPod has quite harmed Apple's image in the way the Cayenne has...

[jediali]

I don't think the iPod has quite harmed Apple's image in the way the Cayenne has...

more reason for porsche to stick to its pure products...

[NSXType-R]

I wouldn't be surprised, the Cayenne's a hot seller. The 911 models and the Boxsters and Caymans aren't a slouch anyway. With profits so high, I guess they can now concentrate more on racing!

[Kitdy]

I wouldn't be surprised, the Cayenne's a hot seller. The 911 models and the Boxsters and Caymans aren't a slouch anyway. With profits so high, I guess they can now concentrate more on racing!

They had damn well better!

[my porsche]

They're making far too much money

Who's to say that that is too much? If they're selling every car they make, then obviously people who are in a position to buy a Porsche don't feel theyre overpriced.

[2ndclasscitizen]

Porsche has debunked this report already, as all it's done is divide their profit by the number of cars they sold, and didn't take into account any other profit from their other businesses, i.e motorsport, engineering etc