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Old 10-26-2006, 12:00 PM   #24
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Join Date: Feb 2006
Location: Illinois
Posts: 701
Quote:
Originally Posted by z12358
perfectlap:
"Can anyone name another fairly large company that knows that 1/3 of its engines can potentially go at any moment and its out-of-warranty owners are basically SCREWED? And the in warranty costs must be big too, replacing a GT3 engine is about $35K all because of a problem they are well aware of. "


I think you just answered your own question. Let's just focus on the waranty years. If those defects are so frequent and severe, Porsche would have hard time breaking even on each car it's selling purely because the waranty claims would exceed any profit margin they could impose on the market. And that, obviously, is not the case. The conclusion is that the frequency and the severity (thus the costs) of the defects must be SMALL enough to allow Porsche not only to make money on each car but to maintain the HIGHEST profit margins in the industry.

Z.

I'm on board with Z......
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