Porsche profits

Here is an article on Porsche profitability.I, for one, am glad I could help. <a href="http://www.detnews.com/2002/autosinsider/0209/19/autos-590791.htm" target="_blank">Porsche profits</a> I do wish, though, since they are making so much money, that they would lower their prices so I could buy two cars.

I just wish they would add back some of the technologies they have abandoned to make more money on the cars. Things like use of magnesium engine and gearbox castings, forged alloy wheels, aluminum body parts, dry sump engines, gearboxes with servicable internals, replacable nikasil cylinders in the engine, etc. All the above technologies (except for the Turbo's use of the dry sump, nikasil cylinders and servicable gearbox, all based the old generation cars components BTW) were used on the 911's of the past but have been abandoned for cost. I'm sorry, but this old fart who started with Porsche in the 50's with 356 cars before the 911 was built hates to see the good stuff go and be replaced with no more materials tech that a Toyota Camry. <img src="graemlins/icon107.gif" border="0" alt="[icon107]" />

Hey Cupcar...glad to see there's another "old fart" on the list. I feel the same as you do. I even go back to the Karmann Ghia days! I also think you're correct. The only thing Porsche has left that most other cars don't is "Panache"...and Porsche Panache may be a thing of the past if they don't get back into a big-time racing program.(and win) Regarding price...let's see what happens if and when supply exceeds demand. It will be interesting to see how Porsche would react to that. I not that GM is 0% 5yr deals on everything including Corvettes.

So sales were up 5.2 and pretax was up 8........... pretty incredible what a little margin in some 'options' can do I'm old school too... & would prefer a Porsche that was living on more pride, ingenuity, & determination, to be back in racing in 2004 (and a little less pride in the profit they've made on the cars we've bought)....GreggT

The problem, as I see it, is that the older you are the more likely you are to have worked on your car yourself and therefore appreciate details of manufacture. Us old guys lose out, knowing we are losing out. The young guys lose out too but don't know it and, since they represent the majority of buyers, what they will accept prevails in the final product. The upshot is Porsche makes some of the highest profits per vehicle of any manufacturer. I am reminded of a great wine vineyard here in California that produced grapes of special quality by limiting yields and selecting the best fruit. Investors bought out the vineyard owners and have stepped up production, diluting quality knowing that the name of the vineyard will stand on it's own and sustantiate high grape prices for some time. Porsche is doing the same. <img src="graemlins/icon107.gif" border="0" alt="[icon107]" />

Those profits and high cost of options barely cover the warranty costs for all the engine oil leaks and disintergrating tranny innerds. <img src="graemlins/roflmao.gif" border="0" alt="[hiha]" />

The Cayenne should ruin Porsche's financials....

Actually the Cayenne (according to Porsche) development, engineering, etc. is all paid for from cash on hand, and PAG only has to sell 5k Cayennes for that model to break even. I forget where the article came from, but I distinctly remember those facts because they were so unbelievable. What company today has no debt, pays cash for everything!

Intersting. Paying cash for the Dev. sounds reasonable, but I don't buy "break-even" at 5k units. Even if every Yan sold for $100K that's only $5M. I'm sure they're marketing budget alone will be in the millions... Hopefully I'll be wrong, but after the novelty wears off they'll be hard to sell. Remeber how the new Mercedes SUV was sooo hot? Now they compete w/ the rest of them...the difference there is that the Mercedes is relatively price competitive.

Dan, you got it right i read the same article. They also declined a goverment subsidy of 100 million deutsche marks($45million)to build a factory in Leipzig where they a building a new plant. They said "It would be better for the goverment to use that money for social programs" Maybe NOW they will put some more money back into a great Quality Control program

5,000 units x $100,000/ea = $500MM. Even if you assume that they sell each for $75K that's still $375MM Revenues. Once you consider that Porsche has the highest margins in the auto biz it's not hard to see that their breakeven is not that many units.

[quote]Originally posted by GreggT: <strong>I'm old school too... & would prefer a Porsche that was living on more pride, ingenuity, & determination,....GreggT</strong><hr></blockquote> I agree with GreggT and CupCar. I go back to the 70's, when I think the cars had more of an "edge" (as in "razor sharp"). Sorry, but the 996 leaves me cold. I'm keeping my hopes up for the next iteration of 911.