VW Makes $23,000 average on each New Porsche
 

http://autos.yahoo.com/news/volkswagen-pockets--23-000-when-you-buy-that-new-porsche-015402399.html

Sadly, you cannot get the dealer to come down that much because the dealership buys the cars from the manufacturer at a high price.

The manufacturer makes $23,000 average on each new Porsche. But the dealership only makes a few thousand on each new Porsche sold.

Sounds like VW has quite the gravy train set up in their favor. I'd be curious to see these margins broken down by model type. (i.e. are they making more per unit of Cayenne sales than Boxsters, etc.) I doubt they'd make that information public though.

Sounds like buying an iphone/ipad/macbook, etc.

Independent retailers like BestBuy are not allowed to discount it whatsoever. Apple gets the profit as a result.

Upon further investigation, I can pretty much guarantee that VW isn't receiving a positive profit margin on its latest 991 GT3s: :eek:

2014 Porsche 911 GT3 Replacement Engines - News - Road & Track

and the crowd that mocks C7 Stingray early production blunders goes ....silent.

you always make good points and i usually agree with them (this case included) but sometimes i wonder if the only car you will not defend is a Porsche haha.

If Porsches were priced without the Porsche tax I might have been inclined.
If you ask for a premium the standard goes up. If the premium goes wayyy up, we expect more.
oh and by the way, don't take it to the track or your warranty becomes bird cage liner.

by the way, regarding that TOTAL RECALL of the new GT3, are there any GT3 engines from the water-cooled era that do not require some laboriously expensive fix to keep them from imploding? We had coolant pipes that decide to take the day off while your at the track. Yes, that's not ideal... Now we have connecting rod fastener issues. Who knows what else is "cooking" in there. But hey one can't expect too much from a $150,000 car...

What do expect the profit margins for Ferraris, Aston, McLarens, Bugattis, etc. are? Even AMG Mercedes and BMW Ms?

It's pay to play.

This is more simple reporting than it is news.

The funny thing is that one of the most profitable car brands is also one that is the best value. People drive the 981 and claim it is on par with many cars that cost 100k more, while being twice as practical. Besides any price is a discount on something as priceless as a Porsche, knowing that your car comes from the company that has more Motorsports victories than any other, knowing that you own a car that was on car and drivers 10 best list almost every year that it was eligible, and lastly knowing that a crest no other than the Porsche crest rests upon your hood.

Isn't that the average whole sale price to replace Porsche engines?

I didn't read any statement about what dealers make per sale. Did I miss it?

What's their annual income on parts?

The key is 'on average.' I think most of this is probably from the Panamera and Cayenne, and $600 for leather air vents, or $400 for deviated stitching. It would be hard to make $23k on a $60k Boxster, and still have it perform like a Porsche.

With the GT2 you actually pay money for them to remove bits.

You really think so??
In this day in age where everything is mass produced to the point where efficiencies are abt 100%, cars share platforms and engines with other cars thus further reducing costs, and so on...
I bet it doesn't cost Porsche nearly as much as you think to produce a little Boxster.
Lets face it, these are VERY expensive little cars with relatively little engines when brand new.
Luckily for all of us its a cool fun car.

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.

Maybe I am just reading this wrong. If so, I cry your pardon.

You seem to have a pretty strong disdain for Porsche vehicles. I agree that there have been some issues with Porsche vehicles, but do not hold the same snarkyness that you seem to have.

So my question is... IF you dislike Porsches so much, why do you own one? I am not being a smart a$$ at all, promise. For example I really don't like Sony TV's. So I have never purchased one. I really don't like Corvettes. So I have never owned one.

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.

If an unfamiliar person were to take a look at all the forums, letters to magazines, and comments in various blogs you'll find that Porsche has perhaps the most critical ownership base of any luxury car brand. Which makes perfect sense to me...the typical owner is educated, informed and demanding.

Why do I own a Porsche? Because they made a great car at the point in time that I was looking for one. To me, Porsche is no different than a gadget maker. Just because a person may choose a particular phone in their line up does not mean that person becomes the advocate of every ipad, macbook or desktop that Apple sells.
Similary, there are plenty of iphone users who are HIGHLY critical of Apple's marketing, pricing, feature sand-bagging and sales tactics yet they still keep that one product in their line up because its the best option for them. I'll often see people writing: "I use an Ipad but my phone is an HTC and my laptop is a Samsung." They aren't fanboys and the next phone or tablet purchase being an Apple product is not a given. Sports cars are no different and the roadster segment is not one of deep choices as the makers often struggle to keep up sales at the level of the initial launch.

I like the Boxster/Cayman. That does not have to mean I like Porsche as a whole.

p.s.
TheStone, Maccan is allegedly sold out for a year. I'm guessing the price will be going up before the market cools.

With respect, you are only looking at perceived profitability in the US who probably have the cheapest Porsche's in the world.

If you amortise the purchasing costs of any Porsche product throughout the ROW, then that profitability goes up, and not necessarily to government coffers due to higher import /value added taxes. Porsche can & will sell their products for as much as they can, so a $4-5K profit on a US car could well be double or triple that in China, Europe and certainly here in Australia where a BASE Boxster is $US115,000 before on road costs.
As a matter of interest, does anyone know which country / market has the cheapest Porsche's?

Designed by accountants....And we wonder why there are engine issues and brand new GT3s have rod bolts loosening and falling out, puncturing crankcases and burning cars to the ground.