Forget invoice.. what does it cost Porsche to build a 997?
12-23-2005, 03:36 AM
#1
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Forget invoice.. what does it cost Porsche to build a 997?
Porsche has managed to make the $100k 911 commonplace. Does anybody know what it costs them to build one (in US $)?
Given that they know how many units they plan to produce, and given that they are a sophisticated company that probably allocates their indirect costs by model, there should be some info on the final cost per unit including overhead.
Anybody know?
Given that they know how many units they plan to produce, and given that they are a sophisticated company that probably allocates their indirect costs by model, there should be some info on the final cost per unit including overhead.
Anybody know?
12-23-2005, 09:27 AM
#3
Porsche is the most profitable car company in the world, so my guess would be that their profit margin on each car is around 20%. This is an extraordinay accomplishment considering the relatively small number of cars they manufacture each year.
12-23-2005, 10:36 AM
#5
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PCNA invoice to dealer spread runs around 15%.
If you have a car on order, and you ask nicely, an invoice cost pro-forma can be generated thru eDCS.
If you have a car on order, and you ask nicely, an invoice cost pro-forma can be generated thru eDCS.
12-23-2005, 10:41 AM
#6
I would say 20% is low.
Let's face it.
Parts are parts. Even though a Porsche is a Porsche and a Chevy is a Chevy, plastic is plastic, metal is metal, how much more expensive is a wheel, a piece of dash plastic, or seat rails, or plastic housing for front light assemblies etc etc etc on a Porsche vs a Chevy - not much difference really. Most parts for all cars are made by about 5 worldwide manufacturers and they make parts for ALL cars.
The point is that every car is made up from a bunch of parts put together. Most cars have the same components, basically 4 wheels and a steering wheel. So if Chrysler can build a 300C and sell it for $30,000 and still make a profit, figure that if you break down all the parts Porsche puts into a 997 it costs Porsche probably about $25,000 to build a 997.
Most money is spent on R&D and marketing.
Let's face it.
Parts are parts. Even though a Porsche is a Porsche and a Chevy is a Chevy, plastic is plastic, metal is metal, how much more expensive is a wheel, a piece of dash plastic, or seat rails, or plastic housing for front light assemblies etc etc etc on a Porsche vs a Chevy - not much difference really. Most parts for all cars are made by about 5 worldwide manufacturers and they make parts for ALL cars.
The point is that every car is made up from a bunch of parts put together. Most cars have the same components, basically 4 wheels and a steering wheel. So if Chrysler can build a 300C and sell it for $30,000 and still make a profit, figure that if you break down all the parts Porsche puts into a 997 it costs Porsche probably about $25,000 to build a 997.
Most money is spent on R&D and marketing.
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12-23-2005, 11:35 AM
#8
Burning Brakes
Originally Posted by RR
I would say 20% is low.
Let's face it.
Parts are parts. Even though a Porsche is a Porsche and a Chevy is a Chevy, plastic is plastic, metal is metal, how much more expensive is a wheel, a piece of dash plastic, or seat rails, or plastic housing for front light assemblies etc etc etc on a Porsche vs a Chevy - not much difference really. Most parts for all cars are made by about 5 worldwide manufacturers and they make parts for ALL cars.
The point is that every car is made up from a bunch of parts put together. Most cars have the same components, basically 4 wheels and a steering wheel. So if Chrysler can build a 300C and sell it for $30,000 and still make a profit, figure that if you break down all the parts Porsche puts into a 997 it costs Porsche probably about $25,000 to build a 997.
Most money is spent on R&D and marketing.
Let's face it.
Parts are parts. Even though a Porsche is a Porsche and a Chevy is a Chevy, plastic is plastic, metal is metal, how much more expensive is a wheel, a piece of dash plastic, or seat rails, or plastic housing for front light assemblies etc etc etc on a Porsche vs a Chevy - not much difference really. Most parts for all cars are made by about 5 worldwide manufacturers and they make parts for ALL cars.
The point is that every car is made up from a bunch of parts put together. Most cars have the same components, basically 4 wheels and a steering wheel. So if Chrysler can build a 300C and sell it for $30,000 and still make a profit, figure that if you break down all the parts Porsche puts into a 997 it costs Porsche probably about $25,000 to build a 997.
Most money is spent on R&D and marketing.
It is true plastic is plastic and metal is metal, etc. But, If I told you to make a custom plastic square gear shift ****, you would need to design and engineer it first (hence, labor cost), then build a mold & machine it (equipment & tooling cost), and then actually produce the 'widget'. So, its more than the actual cost of plastic, if you consider the soup to nuts cost so to speak to bring it from idea to your hands. The total cost is then spread over all the anticipated quantities of the part.
You are right the prifit margins are ridiculous, but it 'is' more than just the actual cost of the final part.
12-23-2005, 11:39 AM
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And then you have the testing, etc.
Me thinks Porsche spends more time engineering and testing their products (thus higher cost) then GM, Ford, Chrysler, etc...
Me thinks Porsche spends more time engineering and testing their products (thus higher cost) then GM, Ford, Chrysler, etc...
12-23-2005, 11:50 AM
#10
Originally Posted by RR
I would say 20% is low.
Let's face it.
Parts are parts. Even though a Porsche is a Porsche and a Chevy is a Chevy, plastic is plastic, metal is metal, how much more expensive is a wheel, a piece of dash plastic, or seat rails, or plastic housing for front light assemblies etc etc etc on a Porsche vs a Chevy - not much difference really. Most parts for all cars are made by about 5 worldwide manufacturers and they make parts for ALL cars.
The point is that every car is made up from a bunch of parts put together. Most cars have the same components, basically 4 wheels and a steering wheel. So if Chrysler can build a 300C and sell it for $30,000 and still make a profit, figure that if you break down all the parts Porsche puts into a 997 it costs Porsche probably about $25,000 to build a 997.
Most money is spent on R&D and marketing.
Let's face it.
Parts are parts. Even though a Porsche is a Porsche and a Chevy is a Chevy, plastic is plastic, metal is metal, how much more expensive is a wheel, a piece of dash plastic, or seat rails, or plastic housing for front light assemblies etc etc etc on a Porsche vs a Chevy - not much difference really. Most parts for all cars are made by about 5 worldwide manufacturers and they make parts for ALL cars.
The point is that every car is made up from a bunch of parts put together. Most cars have the same components, basically 4 wheels and a steering wheel. So if Chrysler can build a 300C and sell it for $30,000 and still make a profit, figure that if you break down all the parts Porsche puts into a 997 it costs Porsche probably about $25,000 to build a 997.
Most money is spent on R&D and marketing.
12-23-2005, 01:05 PM
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Originally Posted by MJones
PCNA invoice to dealer spread runs around 15%.
If you have a car on order, and you ask nicely, an invoice cost pro-forma can be generated thru eDCS.
If you have a car on order, and you ask nicely, an invoice cost pro-forma can be generated thru eDCS.
The question I have though, is the discounted US pricing due to Porsche's currency hedging the best place to start or should we work backwards from German Euro (excluding VAT) pricing? If my guestimates are right then in the extreme Porsche is charging at least 2x their cost in the US and at least 2.5x their cost ROW.
12-23-2005, 01:10 PM
#12
Three Wheelin'
Originally Posted by RR
Most parts for all cars are made by about 5 worldwide manufacturers and they make parts for ALL cars.
12-23-2005, 01:10 PM
#13
Don't know about Porsche but MBs SL500 (the previous R129 generation) reportedly costs 45 K to produce and retailed for 90K. I would expect Porsche to make an even greater profit and thus cost less than half its MSRP.
12-23-2005, 01:14 PM
#14
Porsche is charging at least 2x their cost in the US
That's a 50% margin. I read somewhere that the average car manufacturer's profit is in the single digits. My guess is that Porsche's profit is a lot closer to 20% than 50%, and even 20% is fantastic when compared to their competition.
That's a 50% margin. I read somewhere that the average car manufacturer's profit is in the single digits. My guess is that Porsche's profit is a lot closer to 20% than 50%, and even 20% is fantastic when compared to their competition.
12-23-2005, 01:55 PM
#15
Originally Posted by RR
I would say 20% is low.
Let's face it.
Parts are parts. Even though a Porsche is a Porsche and a Chevy is a Chevy, plastic is plastic, metal is metal, how much more expensive is a wheel, a piece of dash plastic, or seat rails, or plastic housing for front light assemblies etc etc etc on a Porsche vs a Chevy - not much difference really. Most parts for all cars are made by about 5 worldwide manufacturers and they make parts for ALL cars.
The point is that every car is made up from a bunch of parts put together. Most cars have the same components, basically 4 wheels and a steering wheel. So if Chrysler can build a 300C and sell it for $30,000 and still make a profit, figure that if you break down all the parts Porsche puts into a 997 it costs Porsche probably about $25,000 to build a 997.
Most money is spent on R&D and marketing.
Let's face it.
Parts are parts. Even though a Porsche is a Porsche and a Chevy is a Chevy, plastic is plastic, metal is metal, how much more expensive is a wheel, a piece of dash plastic, or seat rails, or plastic housing for front light assemblies etc etc etc on a Porsche vs a Chevy - not much difference really. Most parts for all cars are made by about 5 worldwide manufacturers and they make parts for ALL cars.
The point is that every car is made up from a bunch of parts put together. Most cars have the same components, basically 4 wheels and a steering wheel. So if Chrysler can build a 300C and sell it for $30,000 and still make a profit, figure that if you break down all the parts Porsche puts into a 997 it costs Porsche probably about $25,000 to build a 997.
Most money is spent on R&D and marketing.