Is the bubble about to burst?

Is the bubble about to burst?

Author
Discussion

ChrisW.

6,324 posts

256 months

Wednesday 1st June 2016
quotequote all
Does anybody think this could be Porsche hoping to mop up the premium on GT3's with new car sales ?

Yet on the numbers front, I know that OPC's handed back a lot of GT4 deposits.

And there is something lovely about the little Mezger engined 996 GT3's ... without all the bells and whistles to go wrong !

To me the real classics are the stripped out lightweights ...






hunter 66

3,909 posts

221 months

Wednesday 1st June 2016
quotequote all
Yes Clever marketing ......... well done still love my Porsches ( air cooled ) ..

Sam All

3,101 posts

102 months

Wednesday 1st June 2016
quotequote all
anonymous said:
[redacted]
If they only made 2500, they would make less than the 6000 they have made -they made more, departing from prior practise, for one reason - profit. And why not.

The extra cars took away production from other profitable 911s.

mollytherocker

14,366 posts

210 months

Wednesday 1st June 2016
quotequote all
Sam All said:
If they only made 2500, they would make less than the 6000 they have made -they made more, departing from prior practise, for one reason - profit. And why not.

The extra cars took away production from other profitable 911s.
I think its more likely that they made 6000 to try and get some of the huge development costs back.

I doubt there is much if any profit in these cars.

Sam All

3,101 posts

102 months

Wednesday 1st June 2016
quotequote all
mollytherocker said:
Sam All said:
If they only made 2500, they would make less than the 6000 they have made -they made more, departing from prior practise, for one reason - profit. And why not.

The extra cars took away production from other profitable 911s.
I think its more likely that they made 6000 to try and get some of the huge development costs back.

I doubt there is much if any profit in these cars.
But really they can only do so much with legacy platform/na engines.

The game is moving on, and very quickly too. McLaren is stealing sales, the new AMG's are awesome and Ferraris are not standing still. And the ACRs too.

Sam All

3,101 posts

102 months

Thursday 2nd June 2016
quotequote all
GTS made in Osnabruck, 911s at Stuttgart afaik .

Finite capacity at Stuttgart?

Sam All

3,101 posts

102 months

Thursday 2nd June 2016
quotequote all
Is all non SUV production moving to Stuttgart?

Budflicker

3,799 posts

185 months

Thursday 2nd June 2016
quotequote all
I did the factory tour this week at Stuttgart and saw Carreas, Turbos, GT3 RS,Caymans, Boxsters on the production line, there was even a 911R outside ready for shipping.

The tour guide suggested that all sports cars are made in Stuttgart, while all the 4x4 and Panameras are built in Lepzig.
Weissarch is now for development and R&D.

Upnorthgt3

605 posts

144 months

Thursday 2nd June 2016
quotequote all
Sam All said:
mollytherocker said:
Sam All said:
If they only made 2500, they would make less than the 6000 they have made -they made more, departing from prior practise, for one reason - profit. And why not.

The extra cars took away production from other profitable 911s.
I think its more likely that they made 6000 to try and get some of the huge development costs back.

I doubt there is much if any profit in these cars.
But really they can only do so much with legacy platform/na engines.

The game is moving on, and very quickly too. McLaren is stealing sales, the new AMG's are awesome and Ferraris are not standing still. And the ACRs too.
If the game is moving on, why is Porsche taking a retrograde step towards offering manuals for some of its cars?

Porsche seem to have noted and responded it ITS customers about what they want from a certain sub section of cars and fair play to them - it might actually bring customers to them if they are the only manufacturer offering NA and manual in the future.

I for one would never consider a new Ferrari, McLaren etc because they are only paddles and I don't want to drive a car with paddles. Just not interested at all so I would have had to find myself in older and older cars if manufacturers stuck to paddle only guns.

There is space for techno fest cars with hybrids, paddles, turbos etc and NA, manuals etc - I wonder if the marketing department at Ferrari et al will notice this and respond, especially if Porsche do really well (reputation and profit wise) by continuing with the dinosaurs.....


swimd

350 posts

122 months

Thursday 2nd June 2016
quotequote all
anonymous said:
[redacted]
Or they would drop stty new engines into the cannibalising models to put a stop to it in the future. hehe

Porsche911R

21,146 posts

266 months

Thursday 2nd June 2016
quotequote all
mollytherocker said:
I think its more likely that they made 6000 to try and get some of the huge development costs back.

I doubt there is much if any profit in these cars.
depends what you call profit, I bet the GT4 cost about £25k in parts and it sells for £75k or more.

development people are already on the payroll etc as is rent and all other costs, 95% of parts are from other cars, so the only new bit is a rear subframe bit on the GT4.

Of course they made a massive profit.

6000 cars x £75k is £450,000,000 for a GT4, or for the 991 RS £870,000,000, and £335,000,000 for the Spyder so a total for the 3 latest cars of £1,655,000,000 in sales with no discounts on RRP.

and you say no profit in it ! I am sure those figures with no profit would not get signed off lol !

MrBarry123

6,028 posts

122 months

Thursday 2nd June 2016
quotequote all
A massive gross profit perhaps but a much smaller net profit.

Upnorthgt3

605 posts

144 months

Thursday 2nd June 2016
quotequote all
Porsche911R said:
mollytherocker said:
I think its more likely that they made 6000 to try and get some of the huge development costs back.

I doubt there is much if any profit in these cars.
depends what you call profit, I bet the GT4 cost about £25k in parts and it sells for £75k or more.

development people are already on the payroll etc as is rent and all other costs, 95% of parts are from other cars, so the only new bit is a rear subframe bit on the GT4.

Of course they made a massive profit.

6000 cars x £75k is £450,000,000 for a GT4, or for the 991 RS £870,000,000, and £335,000,000 for the Spyder so a total for the 3 latest cars of £1,655,000,000 in sales with no discounts on RRP.

and you say no profit in it ! I am sure those figures with no profit would not get signed off lol !
Where did you get those number from, do you work for the IMF by any chance.....................

smile

mollytherocker

14,366 posts

210 months

Thursday 2nd June 2016
quotequote all
Porsche911R said:
mollytherocker said:
I think its more likely that they made 6000 to try and get some of the huge development costs back.

I doubt there is much if any profit in these cars.
depends what you call profit, I bet the GT4 cost about £25k in parts and it sells for £75k or more.

development people are already on the payroll etc as is rent and all other costs, 95% of parts are from other cars, so the only new bit is a rear subframe bit on the GT4.

Of course they made a massive profit.

6000 cars x £75k is £450,000,000 for a GT4, or for the 991 RS £870,000,000, and £335,000,000 for the Spyder so a total for the 3 latest cars of £1,655,000,000 in sales with no discounts on RRP.

and you say no profit in it ! I am sure those figures with no profit would not get signed off lol !
I think your 25k to 75k figures are reasonable, but of course they exclude many other costs, some of which you touch on.

I have no more facts than you on what profit has been made, and indeed in many ways, the Porsche accountants will decide what the profit is ie; where the multiple costs should be allocated. And that is a dark art. I control a number of P&L accounts myself for a large company and the allocation of revenue and cost can be an interesting pass time!

Its my hunch that there is little profit in these cars, nothing more.

smudger911

496 posts

259 months

Thursday 2nd June 2016
quotequote all
mollytherocker said:
Porsche911R said:
mollytherocker said:
I think its more likely that they made 6000 to try and get some of the huge development costs back.

I doubt there is much if any profit in these cars.
depends what you call profit, I bet the GT4 cost about £25k in parts and it sells for £75k or more.

development people are already on the payroll etc as is rent and all other costs, 95% of parts are from other cars, so the only new bit is a rear subframe bit on the GT4.

Of course they made a massive profit.

6000 cars x £75k is £450,000,000 for a GT4, or for the 991 RS £870,000,000, and £335,000,000 for the Spyder so a total for the 3 latest cars of £1,655,000,000 in sales with no discounts on RRP.

and you say no profit in it ! I am sure those figures with no profit would not get signed off lol !
I think your 25k to 75k figures are reasonable, but of course they exclude many other costs, some of which you touch on.

I have no more facts than you on what profit has been made, and indeed in many ways, the Porsche accountants will decide what the profit is ie; where the multiple costs should be allocated. And that is a dark art. I control a number of P&L accounts myself for a large company and the allocation of revenue and cost can be an interesting pass time!

Its my hunch that there is little profit in these cars, nothing more.
+1. Considerably smaller margin on the GT range compared with the Porsche 'bread & butter' models such as Cayenne - which by their own admission is a cash cow for other parts of the business.

swimd

350 posts

122 months

Thursday 2nd June 2016
quotequote all
Don't forget that a small profit margin for Porsche may still be a giant profit margin compared to the industry average.

SEE YA

3,522 posts

246 months

Thursday 2nd June 2016
quotequote all
smudger911 said:
mollytherocker said:
Porsche911R said:
mollytherocker said:
I think its more likely that they made 6000 to try and get some of the huge development costs back.

I doubt there is much if any profit in these cars.
depends what you call profit, I bet the GT4 cost about £25k in parts and it sells for £75k or more.

development people are already on the payroll etc as is rent and all other costs, 95% of parts are from other cars, so the only new bit is a rear subframe bit on the GT4.

Of course they made a massive profit.

6000 cars x £75k is £450,000,000 for a GT4, or for the 991 RS £870,000,000, and £335,000,000 for the Spyder so a total for the 3 latest cars of £1,655,000,000 in sales with no discounts on RRP.

and you say no profit in it ! I am sure those figures with no profit would not get signed off lol !
I think your 25k to 75k figures are reasonable, but of course they exclude many other costs, some of which you touch on.

I have no more facts than you on what profit has been made, and indeed in many ways, the Porsche accountants will decide what the profit is ie; where the multiple costs should be allocated. And that is a dark art. I control a number of P&L accounts myself for a large company and the allocation of revenue and cost can be an interesting pass time!

Its my hunch that there is little profit in these cars, nothing more.
+1. Considerably smaller margin on the GT range compared with the Porsche 'bread & butter' models such as Cayenne - which by their own admission is a cash cow for other parts of the business.
+1 the Cayenne saved Porsche as a cash cow car. They needed a model to steady the company and it worked.
These days used ones, excellent value and cheap.



Porsche911R

21,146 posts

266 months

Thursday 2nd June 2016
quotequote all
if you think Porsche make no money on GT cars you are deluded ;-)

They claim the vat back on all costs they spend, and all over heads are already paid for.

So you might even say more profit in GT cars as free over heads covered in the normal cars.

As I said depends how you want to frig the figures.

to say very little profit on 1.6 billion sales seems nieve.

Sam All

3,101 posts

102 months

Thursday 2nd June 2016
quotequote all
Porsche911R said:
if you think Porsche make no money on GT cars you are deluded ;-)

They claim the vat back on all costs they spend, and all over heads are already paid for.

So you might even say more profit in GT cars as free over heads covered in the normal cars.

As I said depends how you want to frig the figures.

to say very little profit on 1.6 billion sales seems nieve.
With all due respect, stick to talking about arbs and such on the 987 Boxster Spyder etc

Finance/commerce is not your strong suit.

smudger911

496 posts

259 months

Thursday 2nd June 2016
quotequote all
swimd said:
Don't forget that a small profit margin for Porsche may still be a giant profit margin compared to the industry average.
Well summed up. Porsche's average margin is 18% in USD terms per car.

http://www.bloomberg.com/news/articles/2014-03-13/...