Staffie Guy

I really lucked out getting a 23 at the 22 MSRP.

russbert

I'd rather be lucky than good!! That's fantastic.

1985Targa

Yep but this is the Luxury market. Hermes. Rolex. Etc. Yep, sometimes they get out over their skis and have to adjust, but most great sustaining Luxury brands adjust w less inventory production to maintain scarcity, especially with their upper end lines (even destroy inventory).

Porsches company’s P&L is not at all about the 911, but rather the 911 is all about Porsches brand… and that’s an asset worth protecting (scarcity, luxury pricing, highest end attributes).

ipse dixit

Exactly.

Porsche does not sell the 911 to make money.

Porsche sells the Macan, Cayenne and now the Taycan to make money

The 911 is a marketing tool for Porsche to sell the Macan, Cayenne, Taycan etc.

mcsmcs1

20% of Porsche sales are comprised of sports cars which is roughly equal to Taycan + Panamera sales. The remaining 60% of units are SUVs. I think the 911 segment is still plenty profitable especially as it lends itself to countless high-price limited editions. I don't disagree it's a halo segment, but it is also highly lucrative and a significant contributor to global sales volume.

SS22

It’s definitely both (marketing tool and lucrative). But both of those goals can only be achieved through scarcity by design. That’s why the Porsche moto is “make 1 less car than there is demand.” By limiting the supply, Porsche can keep the 911 prices high (low volume, but higher margins) and portray an image of exclusivity. If all Porsches were as “inexpensive” and easy to obtain as a Macan, Porsche’s brand wouldn’t be what it is today (I put “inexpensive” in quotes because a Macan is overpriced for what you get compared to the competition but much lower than other Porsche models).

nyca

At a 47% profit margin per car, Porsche is making plenty of money on the 911. And they really have no means to increase profits on the Macan and Cayenne, because those segments have a lot of competition (much of it just as capable at lower prices) which puts a lid on their unit sales and the prices they charge. Their SUV strategy is to release a new model above the Cayenne, to bring in more profits. The 911 could mint more money for them if they could/would produce more of them.

dgoldenz

Paying $15k ADM plus a $15k price increase sounds so much more sensible than paying a $30k ADM on a $15k lower price.

3rdpedal

Of course, ADM is vapor, money lit on fire, the price increase should translate to maintained value/equity. We're seeing 1 year old cars with 6k miles selling at MSRP.

ipse dixit

Let's put it this way.

Porsche would not be a viable ongoing concern if it only sold 911s, or if the majority of its portfolio consisted of 911 sales.

Regardless of how high a profit margin the 911 may command, the volume simply is not there.

So if Porsche cannot sustain itself as an ongoing concern based on 911 sales alone (or as a primary sales component) then by definition it cannot make money selling 911s -- no matter how profitable the car may be.

It tried that back in the 1990s. It did not turn out well.

Nein Eleven

So's the gas going into my engine but the net result brings a smile to my face.

Spiffx

Great analogy!

remington

Porsche is a profitable maker of luxury SUVs that has a side hustle selling sports cars.

sctw

Just to give you an idea on what the market is currently like in Los Angeles > Rusnak Pasadena Porsche had a few 2024 allocations available and quoted:

2024 Targa 4S
MSRP - $196,960 Plus $25k
Estimated Dealer Arrival - 10/13/2023

2024 Carrera S (Open to configuration)
October Build
MSRP plus $20k

2024 Carrera (Open to configuration)
MSRP plus $15k
Estimated Dealer Arrival 11/17/2023

eszu

I just bought my T from Rusnak Pasadena. +10K ADM Est arrival Dec 2023. MY24