Porsche earns $28,000 profit per car. BMW $3,200.

[Jason]

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.

[cdheaven]

wow. who makes 28,000 dollars? the dealership. mr. porsche?

[ScBlacksunshine]

Wow..talk about profit margin...

[Jaws]

Lesson of the day: Higher price = higher margin.

[obLu]

That has to be the manufacturer to dealer transaction right? I'm sure the Chrysler number is skewed by all the incentives they have to give out to push their pig iron.

28k?!? Holy christ, so put another way, a Boxster/Cayman costs way less to manufacture than a 3 series BMW. Which actually, when you look at the quality of the interior materials makes perfect sense.

I'd think that's something Porsche would want to keep under heavy wraps. If it got real public that could really tarnish their image.

[bavarian19]

Im sure Ferrari makes a huge profit margin on their cars.


What those figures fail to show is volume of sales. Chrysler only makes $900 per vehicle, but in the US, sells a boatload of them. Ferrari probably makes a killing on each car (production cost in comparison to sale price), but only sells a handful...

Porsche is towards the higher end of profit margins, but thats probably based on the same way Ferrari makes its money...

[obLu]

I'm pretty sure Porsche produces/outsells Ferrari 100x1, if not higher. And with the base price of their cheapest model at $180000 (? F430, not sure what it really goes for) I wouldn't doubt that Ferrari's profit margin is >50%.

That's a long way from the 55-60k Boxster/Cayman.

I also wonder if those prices are straight transaction or taking into account cost of R&D, labor, raw materials, etc. Figure might be a lot lower when the balance sheets are done. But I have read before that Porsche is the most profitable manufacturer, they've just never mentioned by how much.

PS. I have a vid called 'Super Factories: Ferrari' or something like that, which is a National Geographic special on the Ferrari factory. Besides them smelting and casting their own metal, and hand stitching the leather, everything else looks pretty ordinary. Except for the QA time to make sure the build is perfect. I can't imagine an F430 costing anymore than about 60-70k to manufacture.

[Last E92 M3]

Originally Posted by obLu

I'm pretty sure Porsche produces/outsells Ferrari 100x1, if not higher. And with the base price of their cheapest model at $180000 (? F430, not sure what it really goes for) I wouldn't doubt that Ferrari's profit margin is >50%.

That's a long way from the 55-60k Boxster/Cayman.

I also wonder if those prices are straight transaction or taking into account cost of R&D, labor, raw materials, etc. Figure might be a lot lower when the balance sheets are done. But I have read before that Porsche is the most profitable manufacturer, they've just never mentioned by how much.

PS. I have a vid called 'Super Factories: Ferrari' or something like that, which is a National Geographic special on the Ferrari factory. Besides them smelting and casting their own metal, and hand stitching the leather, everything else looks pretty ordinary. Except for the QA time to make sure the build is perfect. I can't imagine an F430 costing anymore than about 60-70k to manufacture.

I need that video so bad, can you give it to me? (I am serious!!! )

have a cayenne S and it's well worth the money imo.
no regretssssszzzz

[mmm def]

Can we get a link on this? I'd like to email it to my 997 driving Porsche Service advisor friend

[Jason]

Originally Posted by mmm def

Can we get a link on this? I'd like to email it to my 997 driving Porsche Service advisor friend

Click on "Thread Tools" above the first post in this thread. You should be able to e-mail this page to your friend.

[teknochild]

i like when people post "studies" without a link, im sure its true but post the referance

i also like when people report on "studies" without providing how they arrvied at their conclusion


for instance it might cost porshe very little to manufacture their cars but they sell for a lot, but did they factor in the R&D porshes have a dumb amount of technology in them

[BMW F22]

I was looking through the newspaper the other day and they were taking $15k off of Boxsters. Hmmm...interesting...

[KL2DC]

Porsche AG's operations (in the last few years) have been a case study in profitability. The profit levels are undoubtedly bolstered by their renowned and very extensive options list which included custom/bespoke trim items like $560 leather trimmed sun visors and $2,700 to have your air vents (and surrounds) trimmed in carbon fibre

[swamp2]

Originally Posted by Last E92 M3

I need that video so bad, can you give it to me?

I'd love to see it (buy it I guess) as well. Post more info. please.

[BMW F22]

Here's the video that OBLU was talking about

"ultimate factories: ferrari" - shows production of the 599
http://socalspeedzone.com/pages/ferrarifactory.html

[herbz]

don't care how expensive the porsche is, or how much ppl get ripped off, it's definetely worth it.

[6SpeedMan]

Originally Posted by herbz

don't care how expensive the porsche is, or how much ppl get ripped off, it's definetely worth it.

I'm sorry but for the extra money that I would save buying a BMW I could make that car "Worth it"

[TommyBahama]

Originally Posted by obLu

I'm pretty sure Porsche produces/outsells Ferrari 100x1, if not higher. And with the base price of their cheapest model at $180000 (? F430, not sure what it really goes for) I wouldn't doubt that Ferrari's profit margin is >50%.

Ferrari spends a crap load on R&D plus they build each car by hand and use the most coastly materials, its more than likely that Ferraris cost damn near their MSRP to produce. the real profit comes from the amount they make above the MSRP that the dealerships charge to buy off the lot. but that money doesnt go to the company.

Ferrari also needs to have a parent company to survive they wouldnt if they had a high profit margin.

[obLu]

Originally Posted by TommyBahama

Ferrari spends a crap load on R&D plus they build each car by hand and use the most coastly materials, its more than likely that Ferraris cost damn near their MSRP to produce. the real profit comes from the amount they make above the MSRP that the dealerships charge to buy off the lot. but that money doesnt go to the company.

Ferrari also needs to have a parent company to survive they wouldnt if they had a high profit margin.

I think that used to be true. Watch the vid, modern Ferraris aren't as hand built as they used to be. And even with expensive materials, I can't imagine it really costs >100k to manufacture.

I've read several times that Fiat bailed Ferrari out, and now it's the other way around. Fiat needs Ferrari profits to keep them afloat. But who knows how true that is.

[Last E92 M3]

Originally Posted by BMWE90

Here's the video that OBLU was talking about

"ultimate factories: ferrari" - shows production of the 599
http://socalspeedzone.com/pages/ferrarifactory.html

Been 2 days, (since you gave me the link) still downloading it...
1 more day...just 1 more day

I didn't get to finish watching it because I had to go out and eat
Thanks!

[Couch]

Originally Posted by obLu

I think that used to be true. Watch the vid, modern Ferraris aren't as hand built as they used to be. And even with expensive materials, I can't imagine it really costs >100k to manufacture.

I've read several times that Fiat bailed Ferrari out, and now it's the other way around. Fiat needs Ferrari profits to keep them afloat. But who knows how true that is.

Definately not as hand built as they once were, but still pretty hands on. Dash, seats, anything with leather is all stiched by hand.

I've watched the Ultimate Factory show on The NGC and loved it. But I'm also a life long Ferrari nut.

Enzo originally began building road cars to finance his racing career. I believe that's still where a lot of the profits they make go. And contrary to popular belief, Ferrari's can be "reliable" when they see regular time out of the garage. Garage queens suck. It doesn't matter what brand it is.

The only hand built cars these days are Astons and maybe Rolls Royce.

[herbz]

Originally Posted by 6SpeedMan

I'm sorry but for the extra money that I would save buying a BMW I could make that car "Worth it"

bmw < porsche

everything from interior trim, to looks, to performance... thats just my opinion. you get what ya pay for and porsche isnt any exception.

and btw bmw = dime a dozen

porsche = even the boxster S is rare in most areas outside of CA and Fl, let alone higher end models