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Old 10-27-2006, 06:49 AM   #11
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Join Date: Apr 2006
Location: Chicago
Posts: 585
Quote:
Originally Posted by z12358
Here's what we know:

1. RMS is more frequent than IMS but less severe.

2. IMS is less frequent than RMS but more severe.

3. We know nothing about HOW frequent either of them are.

4. ALL "issues" during the warranty years MUST be producing waranty claims small enough to allow Porsche to keep highest profit margins in the industry.

5. Beyond the warranty years, unless third-party Extended Warranties for Porsches are multiples of times more expensive than those for other brands, ALL "issues" in aggregate couldn't possibly be that much worse than what is expected from other brands.

The free market is the greatest aggregator of data and the best indicator of trends.

Rich, freedom -- learn from it.

Z.
Aww shoot... my bad Brucelee...

4) I don't think anyone has ever questioned this one. Profit margin is a function of a whole lot of things and is not some sort of magic indicator of quality. Porsche has a business case that works and no one is questioning this. Yes, we understand your point that if this was a widespread issue than Porsche would be out of business. If this was a widespread problem yes, they would not be profitable. If you looked at the profit margins for Ford when their big SUV's dominated the market you would be shocked! They made a killing in that market, but do you think its because they had some sort of magic formula for low warranty costs?

Once again, no one would argue that if this was a widespread problem that Porsche would not be profitable.

BTW - What is the profit margin that you are referring to? You keep talking about it, but what is the figure or range and where did you get it from?
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