Porsche 917 Business
10-19-2006, 02:11 PM
#6
Racer
Join Date: May 2005
Location: Los Angeles, CA
Posts: 336
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by jimculp
No engine shots- wonder what kind of powerplant?
http://www.pelicanparts.com/swapmeet...2005/page1.htm
10-19-2006, 02:45 PM
#7
Addict
Rennlist Member
Rennlist Member
Let's do some quick calculations. At current exchange rate Au$500K = US$380K
Now it depends on the cost of materials and time, but I am going to assume 500 man-hours at $40/hour and material costs of $50K. Including overhead and indirect costs, let's say each car costs $100K. If I can sell them for $150K then I need to sell about 8 cars to recoup my original $380K investment (assuming seller wll agree to that price).
I suppose that is not bad, but the question is how big is the market for replica 917s selling at $150K apiece. It could take a month or it could take a year. Now if it takes a month, then I can keep my staff busy, but if it takes a year, well now I have to keep paying my staff with no sales and no income.
There's your risk.
Now it depends on the cost of materials and time, but I am going to assume 500 man-hours at $40/hour and material costs of $50K. Including overhead and indirect costs, let's say each car costs $100K. If I can sell them for $150K then I need to sell about 8 cars to recoup my original $380K investment (assuming seller wll agree to that price).
I suppose that is not bad, but the question is how big is the market for replica 917s selling at $150K apiece. It could take a month or it could take a year. Now if it takes a month, then I can keep my staff busy, but if it takes a year, well now I have to keep paying my staff with no sales and no income.
There's your risk.
Trending Topics
10-19-2006, 04:10 PM
#9
Three Wheelin'
Join Date: Aug 2005
Posts: 1,980
Likes: 0
Received 0 Likes
on
0 Posts
I met this guy at Daytona during the Rennsport meet a couple of year's back. Its a really beautiful and faithful repro. I can confirm it does run a Carrera motor built up to run as hot as you want or your budget allows. The flat fan the 12-cylinder used is now an electric fan for engine cooling and it has a set of dummy injector horn covers so the engine compartment looks like the original. I don't believe the car is street legal here in the states or ever could be. I'm not sure the car would be allowed into HSR or other vintage racing groups as its really not an original. That leaves you with having to create a "spec" racing class to either be sanctioned by a national organization already in existence or to create your own. So I think Jim kind of undervalued the question at $64. I think its a $500,000 question. Its an interesting business case. To set-up a shop with the neccessary tools and equipment would not be an inexpensive proposition IMHO, and finding a reliable engine supplier might be a tough task. So, its an interesting proposition, but I'm not sure I can afford the price of admission.
10-19-2006, 05:23 PM
#10
Addict
Rennlist Member
Rennlist Member
Nor do I think it makes good business sense. It is such a niche market that the risk/reward is not very favorable. I admire the guys that put the business together as it appears they tried to stay true to the design elements of a 917.
Think about it, if it really was a lucrative opportunity, would you have to auction it off on eBay?
Think about it, if it really was a lucrative opportunity, would you have to auction it off on eBay?
10-19-2006, 05:26 PM
#11
Racer
Join Date: May 2005
Location: Los Angeles, CA
Posts: 336
Likes: 0
Received 0 Likes
on
0 Posts
Could you connect two flat six engines together to make a 12? I know somone's done it with V8 to make a V16. But, V8 blocks are quite a bit different than a flat-6 case.
10-19-2006, 05:29 PM
#12
It breaks down to a demand question that really can`t be answered. If there ever was a beautiful car that was it. Everyone wants one(as they say on the poster) but you can`t drive it on the street and there is much competition in that price range. I just don`t think the demand is there. Plus you would have to listen to the" provenance lecture" a thousand times.
Speaking of Brian Redman he lives across A1A from me--Yikes! I saw him at the beach with his family and thought I was hallucinating(again).
Speaking of Brian Redman he lives across A1A from me--Yikes! I saw him at the beach with his family and thought I was hallucinating(again).
10-19-2006, 05:35 PM
#13
Drifting
It almost sounds from the way the ad reads, that they're selling the rights to establish a USA division of their business. A dealership/franchise if you will (granted it's manufacturing). They'd assist you with what you needed (including two USA orders), frame jigs, molds, help from their pros, and then you're on your own. It seems as though their intent is to keep the Australian thing going.
10-19-2006, 05:37 PM
#14
Drifting
There's another ad to sell a European business:
http://cgi.ebay.com.au/LMK917-Porsch...QQcmdZViewItem
http://cgi.ebay.com.au/LMK917-Porsch...QQcmdZViewItem
10-19-2006, 05:44 PM
#15
Three Wheelin'
Join Date: Aug 2005
Posts: 1,980
Likes: 0
Received 0 Likes
on
0 Posts
That's exactly what they're doing, trying to find a US and Euro Franchisee/Dealer/fabricator/Assembler in order to probably try and reduce the product's cost in areas outside of Oz. It really is a beautiful machine, and IF you could adapt it for the street or there was some some spec series already going it would be cool, but those are big ifs to be betting a $500,000+ on in my opinion.