Want More Profits? Hire a Porsche (Consultant)

Bertel Schmitt
by Bertel Schmitt

Having been cut off the lucrative (and in the end deadly) derivatives business, Porsche looks for other sidelines. And it seems very much like they have found one: Consulting.

“Just as car enthusiasts envy Porsche drivers,” reports Automotive News [sub] “company executives salivate over the carmaker’s profit margins, the highest in the industry.” Said salivation generates juicy business at Porsche.

That prompted Porsche into teaching other companies how to generate hefty profits. Let’s hope they don’t tell their clients the truth: Just charge a lot of expensive extras.

Porsche already signed up clients such as Lufthansa, Volkswagen and shipbuilder Meyer Werft. Instead of learning how to sell inflated sat-nav systems, Porsche’s consulting clients aim to gain know-how in efficient production methods to boost profitability.

Porsche’s consulting division will expand its 220-strong workforce to serve an increased customer base of 150 companies.

Porsche is proud of an operating margin of 19 percent in their automotive unit. BMW must make do with 8.1 percent, while Mercedes-Benz has 9.5 percent and Audi a respectable 11 percent.

Actually, Porsche is recycling foreign know-how. When Porsche was doing atrociously in 1993, and Wiedeking took over, he hired Toyota’s consulting arm. Says Automotive News: “Under Toyota’s guidance, Porsche took steps to fine-tune cooperation with suppliers to ensure factories received parts just when they were needed on the assembly line, a method that’s been widely copied in the automotive industry and that Porsche is now helping companies in other industries implement.”

Gee. Valuable intellectual property. Taken from the Japanese by Germans, and sold at a gefty profit. What is the world coming to?

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2 of 6 comments
  • Alexdi Alexdi on Dec 13, 2010

    Porsche could offer a master class on milking heritage. The Sport Classic was, what? A Carrera with a body kit? And they've sold the entire run at over double the price. Well bloody done!

  • Tony Tony on Dec 13, 2010

    Well, anytime a Japanese automaker builds a car with a Wankel (rotary), Diesel, or Otto Cycle (4-stroke) motor, they are copying a German product. Seems like a fair trade.

  • ToolGuy Seems pretty reasonable to me. (Sorry)
  • Luke42 When I moved from Virginia to Illinois, the lack of vehicle safety inspections was a big deal to me. I thought it would be a big change.However, nobody drives around in an unsafe car when they have the money to get their car fixed and driving safely.Also, Virginia's inspection regimine only meant that a car was safe to drive one day a year.Having lived with and without automotive safety inspections, my confusion is that they don't really matter that much.What does matter is preventing poverty in your state, and Illinois' generally pro-union political climate does more for automotive safety (by ensuring fair wages for tradespeople) than ticketing poor people for not having enough money to maintain their cars.
  • ToolGuy When you are pulled over for speeding, whether you are given a ticket or not should depend on how attractive you are.Source: My sister 😉
  • Kcflyer What Toyota needs is a true full size body on frame suv to compete with the Expedition and Suburban and their badge engineered brethren. The new sequoia and LX are too compromised in capacity by their off road capabilities that most buyers will never use.
  • ToolGuy Rock crushes scissors, scissors cut paper, paper covers rock, and drywall dents sheet metal.