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stubbsy996

782 posts

215 months

Wednesday 6th December 2006
quotequote all
Andy T said:
Yeah, Maybe now they can spare the 5 grand it costs to fix my boxsters "design fault" gearbox and pay to send their dealers to the school of non slimy car sales!

Is there such a school then

anonymous-user

56 months

Wednesday 6th December 2006
quotequote all
im guessing they make a good % on finance and parts not just new car sales, after all people pay more for longer to keep a valuable car on the road.

stubbsy996

782 posts

215 months

Wednesday 6th December 2006
quotequote all
fidgits said:
mondeoman said:
fidgits said:
well, they're doing something right!


Yep, concentrating on thier core product - sports cars, not trying to become a "mainstream" manufacturer with a finger in every class.

Be interesting to see how BMW have done since they started chasing every market sector...


well, the 3 series is outselling the Mondeo - but I think that has devalued the brand somewhat..

Should this worries me having moved from a 3 series to a 911. How long before the 911 becomes the new 3 series and everyone's buying one? Suppose probably not, a new 911 costing £60k'ish, a new 3 series costing £20k'ish!

Road_Terrorist

5,591 posts

244 months

Wednesday 6th December 2006
quotequote all
bdeng66 said:
edoardo said:
XTR2Turbo said:
profit of €20,000 or £14,000 per car sold.

That's the same thing I thought first when reading the article.
amazing. from the quoted figures it's € 21,800 = £ 14700 per car pre tax.
I'd like to see their revenue so that we can guess an average price per car sold.



And then of course the dealer has his own profit to make, which is the price we pay less their payment to Porsche for the car....

Blimmey, they must cost less to build than a very cheap thing!


Most cars are actually a pittance in materials & build cost relative to final sticker price in the showroom, however the R&D cost is quite a substantial amount.

fidgits

17,202 posts

231 months

Wednesday 6th December 2006
quotequote all
stubbsy996 said:
fidgits said:
mondeoman said:
fidgits said:
well, they're doing something right!


Yep, concentrating on thier core product - sports cars, not trying to become a "mainstream" manufacturer with a finger in every class.

Be interesting to see how BMW have done since they started chasing every market sector...


well, the 3 series is outselling the Mondeo - but I think that has devalued the brand somewhat..

Should this worries me having moved from a 3 series to a 911. How long before the 911 becomes the new 3 series and everyone's buying one? Suppose probably not, a new 911 costing £60k'ish, a new 3 series costing £20k'ish!


I think the BMW lowering prices, and introducing lower specification models in the 3 series range coupled with low interest rates for attractive HP deals were probably the reason for this...

911's might become more popular - but their running costs and relative unpracticalibility will avoid this issue

Dr S

5,002 posts

228 months

Wednesday 6th December 2006
quotequote all
Great to see that they are so profitable. Worrying thing is to know how much of the price I paid for my car goes straight to the shareholders...

fidgits

17,202 posts

231 months

Wednesday 6th December 2006
quotequote all
Dr S said:
Great to see that they are so profitable. Worrying thing is to know how much of the price I paid for my car goes straight to the shareholders...


Why dont you buy some shares then... it'll be like a cashback scheme? hehe

sprinter885

11,550 posts

229 months

Wednesday 6th December 2006
quotequote all
Road_Terrorist said:

Most cars are actually a pittance in materials & build cost relative to final sticker price in the showroom, however the R&D cost is quite a substantial amount.

Seems like a fair old chunk of the punters' hard earned ££ going into Porsche's pockets given that basic R&D for much of Porsche range was done in early 60's After all -as said many times before-Porsche design studio can't be a massive drain can it??? Gives you some sort of insight into potential slice for the dealers.

barrisimo

70 posts

238 months

Wednesday 6th December 2006
quotequote all
Most of their sales are still from new cars taking 2005 as example their sales in Eur millions was - Cars 5278.25, Spare Parts 685.04 and Financial Services 610.68, I would imagine that 2006 is not significantly different.

dodgey_rog

1,986 posts

262 months

Wednesday 6th December 2006
quotequote all
General Motors and Ford must be feeling so sick after reading that, bearing in mind that Ford alone has lost nearly $7 billion this year so far, and that doesn't count the 4th quarter!!!!

yikes

hartech

1,929 posts

219 months

Wednesday 6th December 2006
quotequote all
And when they made the 968 and 993 in the early 90's I believe they made losses or very little profit. But most of this was because they were still made the way cars were 30 years before and they never made enough profit to modernise design and production.

Perhaps the lack of original modernisation has forced a price level that we have all come to accept - that now they have up to the minute production techniques - has resulted in the huge profits.

Good luck to them - I say - but why not give something small back when a design or component proves inadequate or troublesome?

Baz Hartech

Adam B

27,472 posts

256 months

Wednesday 6th December 2006
quotequote all
hartech said:

Good luck to them - I say - but why not give something small back when a design or component proves inadequate or troublesome?


clap or who knows maybe even a bloody 3 year warranty like every other manufacturer (or god forbid 4 years like Porsche US)

off_again

12,471 posts

236 months

Wednesday 6th December 2006
quotequote all
Sorry, run those numbers past me again....

Big profit from the sale of 96000 cars? Ford and GM make millions of cars and still make a loss.....

Christ, makes you think doesnt it.... If Porsche can make a profit on their cars why on earth cant the others do the same? I mean, £10 on each Ford means they still make £10m (assuming they make a million cars).... sorry, just checked - Ford MoCo sold over 2.5 Million cars in 2005 and still make a whopping loss....

Jeez, thats bad.... but good for Porsche....

mr phish

55 posts

226 months

Wednesday 6th December 2006
quotequote all
hartech said:
Perhaps the lack of original modernisation has forced a price level that we have all come to accept - that now they have up to the minute production techniques - has resulted in the huge profits.

Good luck to them - I say - but why not give something small back when a design or component proves inadequate or troublesome?

Baz Hartech


Hit the nail on the head on both counts there Baz.

It's a not as simple as the number of cars sold vs. overall profit to work out how much is made on each car, but it is a fact that Porsche make more on each car than any other manufacturer. The real figure is below £10k. Still enough profit to allow for investment to increase the quality of service across the OPC network and provide more goodwill settlements to suppress the number of complaints Porsche and the dealers are getting because of these design issues.

shoestring7

6,139 posts

248 months

Wednesday 6th December 2006
quotequote all
francisb said:
im guessing they make a good % on finance and parts not just new car sales, after all people pay more for longer to keep a valuable car on the road.


Exactly, neither does it exclude consultancy revenues, interest on cash, or dividend payments.

SS7

jpf

1,312 posts

278 months

Wednesday 6th December 2006
quotequote all
Too busy to read the posts (sorry!), but I can't help wondering what would happen if TVR sold out to Porsche. I think TVR is a turnaround candidate, Porsche knows sportscars and Porsche knows how to make money. TVR makes exciting sportscars missing that last 3% that would make them great and Porsche can give TVR the 3%, save TVR and make money...

Oddball RS

1,757 posts

220 months

Wednesday 6th December 2006
quotequote all
Kind of good news that a sports car maker is rolling in money, even if they do resort to that God awfull Cayenne thingy.

But everyone loves a loser don't they................

You would think they could afford to honour warranties in a decent way wouldn't you?

Alloys?
Brakes?
Etc
etc....

kayc

4,492 posts

223 months

Wednesday 6th December 2006
quotequote all
off_again said:
Sorry, run those numbers past me again....

Big profit from the sale of 96000 cars? Ford and GM make millions of cars and still make a loss.....

Christ, makes you think doesnt it.... If Porsche can make a profit on their cars why on earth cant the others do the same? I mean, £10 on each Ford means they still make £10m (assuming they make a million cars).... sorry, just checked - Ford MoCo sold over 2.5 Million cars in 2005 and still make a whopping loss....

Jeez, thats bad.... but good for Porsche....
Thats because Ford sell make good cars(vfm) too cheap with too low margins..and Porsche still survive on the bullshit that they are a specialist manafacturer making precision exclusive vehicles ...when actually they are using mass -produced techniques and selling huge numbers of cars'at expensive prices.A porsche now is becoming a very run of the mill car unfortunately and second hand prices prove that..

AndrewD

7,552 posts

286 months

Wednesday 6th December 2006
quotequote all
jpf said:
Too busy to read the posts (sorry!), but I can't help wondering what would happen if TVR sold out to Porsche. I think TVR is a turnaround candidate, Porsche knows sportscars and Porsche knows how to make money. TVR makes exciting sportscars missing that last 3% that would make them great and Porsche can give TVR the 3%, save TVR and make money...


Or alternatively, not buy TVR, save the time & money & sell more Boxsters, Caymans and 911s to ex TVR buyers!

AndrewD

7,552 posts

286 months

Wednesday 6th December 2006
quotequote all
kayc said:
[quote=off_again]A porsche now is becoming a very run of the mill car unfortunately and second hand prices prove that..


Presumably you mean all those fat-boy 911TT's rather than the clearly specialist GT3?