By on March 20, 2017

Macan Porsche

While still exclusive, Porsche is gradually becoming a more populous and profitable brand. It delivered 238,000 vehicles last year and posted an operating profit of $4.1 billion — a 14-percent increase over 2015’s accounting.

A little back-of-the-envelope math places the per-car profit at roughly $17,250. As a premium automaker, you’d expect it to rake it in on every vehicle sold. However, Porsche doesn’t limit production to the same extent that Ferrari does in order to maintain artificially high prices. And it absolutely decimates other premium brands that offer exclusivity at a higher volume. BMW and Mercedes-Benz both hover at around $5,000 in profit per car.

Porsche seems to have struck an ideal balance. While its per-car profit was actually higher a few years ago — $23,000 in 2013 — it wasn’t making quite as much money overall. At the time, Bentley pulled in roughly 21 grand per unit and sold fewer vehicles overall. Since then, Porsche has shifted some of its focus downmarket, introduced the Macan, expanded its volume, increased income, and still managed to maintain a sweet profit margin on every vehicle sold.

How did it manage that? Basically, the same way Ford wrangles its F-150.

(Read More…)

Recent Comments

  • Vulpine: One question, JDG: Would YOU ride with a ride-sharing service if you had your own car? Would YOU ride with a...
  • Vulpine: “It’s pretty obvious why this is the case, it encourages companies to fix actual safety issues without...
  • Sjalabais: Norwegian here, I have a colleague who was en route to buy a CX5 with a gas engine – cheaper and...
  • ToddAtlasF1: The C130 entered production fifty years after the first flight at Kitty Hawk. It only took Brazil 63...
  • W210Driver: While I am not the least bit interested in pickups or this car, I must say that the concept for the...

New Car Research

Get a Free Dealer Quote

Staff