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flemke

22,865 posts

238 months

Tuesday 23rd January 2007
quotequote all
Bodo said:
Zod said:
Don said:
I would suggest that it is likely Ferrari make even more per unit.
I would suggest that is unlikely. Ferrari is now better run than it ever has been, but they don't have Porsche's economies of scale. They make far more bespoke parts and I simply cannot imagine that they are as efficiently managed.

Ferrari earn more on merchandising than on cars, so that may well be possible.

Ferrari also spend on research and development a fraction of what Porsche (and probably what Bristol) spend on it. They have almost no marketing expenses either.
The Ferrari road car group is there to subsidise the racing operation, and it's always been that way.

Until a few (5-ish) years ago, Ferrari as a whole normally lost money every year. As they were owned by Fiat, this didn't make much of a difference. They're still owned by Fiat, but because Fiat can no longer afford to subsidise them, and because Ferrari are hoping to do a flotation, which of course would require a history or at least prospect of profitability, there is more emphasis on making money off the road cars.

rsvmilly

11,288 posts

242 months

Tuesday 23rd January 2007
quotequote all
ewenm said:
Do you have an opinion on whether it's a good or bad thing? I think it's a good thing.
I think it is a bad thing for purely selfish reasons.

Bodo

12,381 posts

267 months

Tuesday 23rd January 2007
quotequote all
Porsche figures from the website for the 2005/06 period:

2,110,000,000 result before taxes including Sondereffekte
Wiedeking says that the Sondereffekte were the sale of their daughter company CTS and the balancing of their investment from VW.

96,794 new cars sold: €21,798.87 per car sold
102,602 cars manufactured €20,564.90 per car manufactured
11,384 employees €185,347.86 per employee

german tony

Original Poster:

2,000 posts

209 months

Wednesday 24th January 2007
quotequote all
So if we take out the 100 million profit from their currency swop deals how much did they make per car?

It's still an enormous amount isn't it?

Way more than the 2nd best, BMW.

So, to answer a question, do I believe it to be a good thing or not?

Well it's good for Porsche & presumably as all Porsche buyers are dedicated marque fetishists they are happy too.

Me personaly? I really don't give a rat's bottom whether dedicated marque fetishists are being ripped off or not.

However I suspect that deep down inside some of them do.

Edited by german tony on Wednesday 24th January 08:39

flemke

22,865 posts

238 months

Wednesday 24th January 2007
quotequote all
Bodo said:
Porsche figures from the website for the 2005/06 period:

2,110,000,000 result before taxes including Sondereffekte
Wiedeking says that the Sondereffekte were the sale of their daughter company CTS and the balancing of their investment from VW.

96,794 new cars sold: €21,798.87 per car sold
102,602 cars manufactured €20,564.90 per car manufactured
11,384 employees €185,347.86 per employee


It's debatable whether you should delete the currency hedge profit from the calculation.
They would have been short dollars (conceivably a bit of yen as well), but that would be against the risk of their US sales revenue being prospectively reduced. Therefore in a single currency world they wouldn't have had the forex gain, but they might have sold more cars.
On the other hand, the gain from CTS should be deleted. IIRC, it was in the 150M euro area.
We would also need to know what is meant by "balancing of their investment" in VW, if that is a big number.

Bodo

12,381 posts

267 months

Wednesday 24th January 2007
quotequote all
german tony said:
So if we take out the 100 million profit from their currency swop deals how much did they make per car?

It's still an enormous amount isn't it?

Way more than the 2nd best, BMW.

So, to answer a question, do I believe it to be a good thing or not?

Well it's good for Porsche & presumably as all Porsche buyers are dedicated marque fetishists they are happy too.

Me personaly? I really don't give a rat's bottom whether dedicated marque fetishists are being ripped off or not.

However I suspect that deep down inside some of them do.

Edited by german tony on Wednesday 24th January 08:39

Personally, I think the success of Porsche is a good thing, especially because it means they company is very efficient, and Dr. Wiedeking has very strong business ethics and a high integrity. Both of these support the ideas of our society and contribute to wealth and trust.

Porsche buyers are not being ripped off either. A high margin in a competitive market is based on what people are willing to pay, and Porsche buyers are willing to pay for the philosophy and the product. They'd be free to go and get a Corvette for which are not willing to pay as much money.

The fact that the 911 is as expensive to manufacture as the Boxster means that the margin on a 911 is substantially higher than on the Boxster too!

Bodo

12,381 posts

267 months

Wednesday 24th January 2007
quotequote all
flemke said:
Bodo said:
Porsche figures from the website for the 2005/06 period:

2,110,000,000 result before taxes including Sondereffekte
Wiedeking says that the Sondereffekte were the sale of their daughter company CTS and the balancing of their investment from VW.

96,794 new cars sold: €21,798.87 per car sold
102,602 cars manufactured €20,564.90 per car manufactured
11,384 employees €185,347.86 per employee


It's debatable whether you should delete the currency hedge profit from the calculation.
They would have been short dollars (conceivably a bit of yen as well), but that would be against the risk of their US sales revenue being prospectively reduced. Therefore in a single currency world they wouldn't have had the forex gain, but they might have sold more cars.
On the other hand, the gain from CTS should be deleted. IIRC, it was in the 150M euro area.
We would also need to know what is meant by "balancing of their investment" in VW, if that is a big number.

I agree, any chances from speculations with currencies are valid for the result since they have the risk in sales too. AFAIK, the gain from the CTS sales and VW share are only part of the Porsche corporate group's balancing, whose result is initial figure €2,110,000,000 this thread is based on.

The Porsche AG's return is €1,668,000,000 before taxes, which would make €17,232.47 per car sold. However, Tony's local newspaper wouldn't use that figure for comparison, when they've calculated the other manufacturer's margins based on their group's figures too


Edited by Bodo on Wednesday 24th January 12:17

thekirbyfake

6,232 posts

236 months

Thursday 25th January 2007
quotequote all
I was thinking about this yesterday. Porsche were struggling badly not that long ago and it's a pretty much accepted fact that the Boxster saved their ass. Now they're basically printing their own money what would you like them to do?

Add an Elise type car to the line-up?
Add a hot hatch(!)?
Add a four door M5/E55/Q-porte/Rapide rival?
Add a 928 replacement (proper tourer)?
Give us a "proper" Cayman (full engine range and lsd)?
Buy Jaguar?
Go racing?

Mr Whippy

29,116 posts

242 months

Thursday 25th January 2007
quotequote all
thekirbyfake said:
Go racing?


yes

german tony

Original Poster:

2,000 posts

209 months

Thursday 25th January 2007
quotequote all
Might be nice if they paid tax they owed rather than swopping their profits for shares in VW, a (partly) publically owned company.

ewenm

28,506 posts

246 months

Thursday 25th January 2007
quotequote all
german tony said:
Might be nice if they paid tax they owed rather than swopping their profits for shares in VW, a (partly) publically owned company.

You can't blame them for having good accountants that can work the rules to their best advantage. It's the government's fault that loopholes exist.

I'd like them to go racing.

german tony

Original Poster:

2,000 posts

209 months

Thursday 25th January 2007
quotequote all
Now, I didn't point the fingure of accusation as to who was responsible for the situation did I? I just indicated that I don't like it.

As for racing, they do - 's called sportscars

ewenm

28,506 posts

246 months

Thursday 25th January 2007
quotequote all
german tony said:
Now, I didn't point the fingure of accusation as to who was responsible for the situation did I? I just indicated that I don't like it.

As for racing, they do - 's called sportscars

It's not tax owed if they've done it within the rules though.

Do Porsche run works teams though? Rather than supporting private teams?

german tony

Original Poster:

2,000 posts

209 months

Thursday 25th January 2007
quotequote all
Do Porsche run a works team? Isn't that what the LMP 2 car is all about? Unofficially.

hugoagogo

23,378 posts

234 months

Thursday 25th January 2007
quotequote all
thekirbyfake said:
Add an Elise type car to the line-up?

356/914/924/944/968 type car you mean!
thekirbyfake said:
Add a hot hatch(!)?

no, please, unless you mean this:
thekirbyfake said:
a 928 replacement (proper tourer)?


thekirbyfake said:
Add a four door M5/E55/Q-porte/Rapide rival?

this is coming very soon i think


thekirbyfake said:
Go racing?


WRC, with a little 2 litre turbo
that'd be cool

zcacogp

11,239 posts

245 months

Thursday 25th January 2007
quotequote all
hugoagogo said:
thekirbyfake said:
Add an Elise type car to the line-up?

356/914/924/944/968 type car you mean!
Interesting ... is the 924/944/968 an Elise-type car? I always thought of it as slightly different - the Elise is a very finely balanced sports car, which has little power but miniscule weight and trades on delicacy of touch. Not a car for a long distance, but a great car for track days. The 944 is a heavier thing which needs more power to keep it going at a decent lick. Better build, more comfort, a good car for a long distance.


Oli.

thekirbyfake

6,232 posts

236 months

Thursday 25th January 2007
quotequote all
hugoagogo said:
thekirbyfake said:
Add an Elise type car to the line-up?

356/914/924/944/968 type car you mean!

Even smaller and lighter than those cars (which aren't available any more). And not a regular car with an RS or CS edition but an all out pocket sized trackday special.

ETA - what he said ^^^

Edited by thekirbyfake on Thursday 25th January 17:03