voyagez.fr

While I agree with the bulk of the revenue coming from the SUVs, I wouldn’t make the statement that Porsche doesn’t make money from the 911. This is considering 911 is one of their highest margin car, would be incentive to sell more no?

ipse dixit

Porsche makes SUVs so that they can sell the 911 (and variants thereof, including GT cars).

Porsche does not make 911s to sell SUVs.

phaser

Exactly, much of the internet expert testimony needs to absorbed through a durable filter.

3rdpedal

I will say that I have a Macan S. It belonged to a family member so I did not buy it, but it came to me. I didn't think much of it, figured it was essentially an Audi Q5 or so badged and trimmed as a Porsche. The VW Touareg inherits its chassis and other design aspects from the Cayenne, so the thinking was that the Macan might not be much different.

But having put some miles on the Macan, both before and since acquiring my 911, I will say that the Macan is not an SUV. It is a Porsche. It may have 4 doors and look like a crossover, but it is not an SUV dressed up as a Porsche, it is a Porsche dressed up as an SUV. No it's not a 911, but I've been quite surprised by the performance.

voyagez.fr

Was not implying they make 911s to sell SUVs. Just stating that they do have good margin on the 911, so they should therefore want to sell more of them. SUVs will always outnumber the sport cars, therefore will still be relatively exclusive.

ipse dixit

In theory yes, but in practice Porsche is limited with production capacity.

So in order to maximize profits, they have to find the right balance of Cayenne/Macan production vis-a-vis 911s (and variants thereof, such as the GT cars). The former is the duck that lays the biggest golden eggs, while the latter is primarily the reason people want to buy those golden eggs.

Make too much or too little of either, and the entire ecosystem comes crumbling down.

Nibiru12

Porsche sold 9,265 911s, and 19,001 Cayennes, in the US, in 2019, Cayenne sales is higher than normal because 2019 had the all new 3rd gen Cayenne.

So, what's the average price of 911 vs Cayenne?

I'd say Porsche makes lot more money selling higher margin, there is no substitute-911s than lower margin, ultra competitive SUV segment Cayennes and Macans combined.

https://newsroom.porsche.com/en_US/c...-01032020.html

DrewTJ50

It seems like part of what doesn't sit well with people about ADMs is the fact that it's the retailer, not Porsche, that enjoys the benefit of cars being sold over MSRP. Dealers are not a very sympathetic group. I don't really have an issue with supply/demand leading to higher prices at times like these. Personally I'd just rather Porsche have that benefit because they make an awesome product rather than an intermediary/retailer. I suppose the other side of this coin is dealers making less in times when supply > demand.

Interesting thought exercise to imagine what these markets would look like w/o dealers, like the Tesla model.

rk-d

At the same time, Porsche is not going to want 911s running around like 3 series. Familiarity breeds contempt and Porsche has a long term view on these cars.

911s have a nice profit margin, but I tend to agree that Porsche's strategy with the 911 is to maintain the mystique of the brand as much as anything. A 911 rolling down the street is the best advertisement that money can buy for a Porsche SUV.

3rdpedal

Yes and no. I thought of the same thing. But Porsche doesn't really want to sell direct to consumers. And while Tesla eliminates the middle man, they don't sell for less. In fact they still sell high priced luxury performance electrics, that have somewhat questionable build quality, giving them a lot of profit. I really haven't heard of people getting deals from Tesla.

Nibiru12

I agree with this. I'd rather see MSRP increase of $10k than paying ADM of $10k.

Better for resale as well.

aggie57

The US is not their biggest market, in fact it's not even it's second largest market:

https://www.porsche.com/china/en/abo...=china&lang=en

Globally they sell nearly 3 times as many Cayenne's as 911's, even the Taycan managed 20k last year vs. 34k for the 911 and the Taycan is still in launch mode. Yes, they well make more per unit on a 911 but it's hard to see how they don't make more overall from the SUV's.

DrewTJ50

Does Porsche not want to, or is it the US' regulatory framework that requires third party dealers? Tesla may not move their prices very frequently, my point was just that Porsche being in control of end-purchaser pricing likely would result in a different set of pricing dynamics than dealers controlling it.

Nibiru12

I think US is still the second biggest market.

Regions are Asia Pacific is the biggest, then Europe, and then America. (Asia Pacific number includes China)

Markets are China #1, US #2, Germany is a distant #3.

But the gap between China and US is growing... fast.

In Germany, anyone bought a Porsche there?

I thought everyone drove Skoda and VW in the Autobahn.

German1967

See below 911 sold this CY in Germany. It is the No. sports car every month.