GrantG

Their average could be 15%, but I assure you that is not a minimum for every model. Some are much higher and I assume some are lower. If 15% was their minimum, their average would be far higher than that.

The cost to build a stripper base Boxster and a loaded GT2 RS Weissach is not hugely different, but their MSRP's (and wholesale price to dealers) are >500% different. MSRP and cost are not proportional.

GT3

Porsche is not losing money on GT cars, but they do require a lot more money to R&D so they can provide high performing reliable cars, compared to their other models. For example, Porsche can invest much less in Cayennes, Macans, and Panameras, and sell much much much more volume of those units because everyone can drive those every single day, but no soccer mom will DD a GT3. To put it in perspective, annual GT models account for less than 5% of Porsche’s global annual revenue. So we here do you think they are making the most money? While Porsche began as sports car company, they don’t really need to continue making sports cars to survive anymore.

Gravs

That's the average based on total sales. Plus it includes all overheads, which you would not normally use when calculating profit by model. Profit by model is going to vary by quite a lot. E.g. cayman and cayman GTS have a big price difference but cost almost the same to make. It's the marketing department pricing to get £50k out of the guys that can afford £50k and £70k out of people that have more.

They don't publish a profit by model so it's a bit of an assumption to say they make 15% on all of them (after all overheads have been apportioned of course).

We could make some guesses about GT cars vs other 911 models. Normally I would say what I said about Caymans: 911 GTS way more profitable than Carrera. But GT cars do have significantly different parts. Well, engine, suspension are the main ones. Plus there is a bunch of extra R&D, which is an overhead. But RS models are guilty of pricing very highly for what amounts to options. CFRP fenders and, MG roof and Ti silencer do not cost Porsche an extra £30k per car to buy. Don't get me started on Weissach Packs!

In conclusion, no idea for sure but my guess is GT cars are very profitable. Best value by far is stripper GT3.

djcxxx

I'm not so sure the .1 991 GT3 made a whole of money for Porsche. They may find themselves paying for expensive engine issues well into the future.

GT3

Brosef

respectfully disagree. perhaps in the short run. but their brand was built as a sports car / enthusiast brand with a racing heritage. it's a lifestyle brand, and a lot of their consumers purchase their vehicles to associate themselves with that lifestyle. even the SUV buyers. while they could stop making sports cars tomorrow and survive into the future, they would do so less successfully. the sports cars (and the motorsport program) provide the authenticity to the lifestyle that is a big part of what allows them to command a premium.

GrantG

Exactly - it's like saying they would succeed as much or more if they quit all their racing activities as well. Racing is probably a losing proposition in direct financial terms, but it has some value for R&D and strengthening the brand (and the impression that a Macan has racing DNA baked into it).

Nick

So many of you believe that Porsche would invest financial and human resources to build and sell a car that has a 5% profit margin? I don't think so. I believe the minimum would be 15%. Relatively speaking, they remain a low production car company and margins need to be higher for survival.

GT3

GT3

Nick

It was a dramatic point I was making regarding the argument that Porsche would build cars with profit margins lees than 15%. The automobile is a heavily capitalized industry. They can't and shouldn't produce models which do not generate hefty margins especially if they have limited production capabilities.

GrantG

I think they lost something like $300k per car in the 1980's when they sold the 959, but the production of that model provided all the technology that was incorporated into a vast array of models for decades thereafter.

I don't think Porsche looks at the 959 as a failure.

http://www.autozine.org/959/959_4.htm

Nick

Grant, the 959 was more of an experimental car. Also, Porsche almost went bankrupt in the late eighties or early nineties. Totally different car company today; think SUV's and sedans.

Crazy Canuck

After he took over Wendelin Wiedeking ensured everything Porsche did made money to cover its costs. That included even the Museum.
I would potentially agree that small runs of GT car production are not likely as profitable as a Cayenne as development costs are amortized over many more units.
The example of the 996 GT3 was brought up. There were somewhere around 3000 street cars built but don't forget the Cup Cars which is a profit center for Porsche.
Porsche has made money on a small number of racing car sales for decades.
GT cars undoubtely add to the Porsche brand on an ongoing basis with periodic new model introductions. 959 etc. are halo cars that push engineering boundaries to be filtered down to future regular models.

GrantG