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Old 03-19-2014, 05:22 AM   #17
thstone
Certified Boxster Addict
 
Join Date: Nov 2010
Location: Los Angeles
Posts: 7,669
Quote:
Originally Posted by rick3000 View Post
It's not really my area, so that is obviously speculation/guessing. I'm sure Porsche isn't hurting when they sell a car. It would be interesting to see a breakdown of the price into: parts, labor, shipping, R&D and profit.
Operating profit equals total sales revenue left after subtracting the following:
•Cost of sales
•General and administrative expenses
•Sales and marketing expenses
•Research and Development expenses
•Depreciation of property, plant and equipment.
•Any recurring non-financing expense associated with a company's ongoing operations

It does not include any of the following:
•Interest payments
•Taxes
•Amortization of goodwill

In accounting parlance, "operating profit margin" is equal to "EBITA".

Thus, the $22K operating profit per vehicle includes R&D and other sources of revenue like spare parts sales.

Of course, different models generate different profits per car sold and as the original report states, typically the higher the price, the higher the average profit.

If I were to speculate based on the numbers in the article, I'd suggest that the Mecan will be the lowest profit per car at around $4K-5K - similar to an Audi. The Boxster/Cayman is probably around $7K per car. The 911 GT-3 and Turbo S is likely to be at the other end of the spectrum at around $35K per car. The Cayenne and Panamera are likely around $20K-25K per car and drive the average up simply because of the sheer number sold.

Of course, these are speculation on averages; we all know that Porsche makes MUCH more profit on any model that is highly optioned so a base Boxster with no options might have a profit of $7K but a S model with every option in the catalog might generate nearly double that profit.
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Last edited by thstone; 03-19-2014 at 05:30 AM.
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