Flying Finn

I knew that 996 vas quite a bit cheaper to produce than 993 and that 997 is even cheaper than 996 but $26K per vechile, wow...

See the article.

jbeanstalk

It appears to be what the market will tolerate, eh? I'm also curious about the denominator in that equation: how do relative sales volumes compare between the auto makers cited?

frayed

Crazy. There was a thread a while back about how much more expensive these cars are outside the US. I wonder if a lot of the profit comes from ROW sales. Our 106k GT3 is 160k in GB and 145k in DE (if I did the math right).

EDIT: the cost delta is mostly VAT I think

MJSpeed

^you beat me to it...in the NA market PAG sells their cars at lower price than most of the ROW.

Nick

Porsche has been very successful in sharing parts among its cheaper and more expensive models. For an example, the 911 is pretty close to sharing 50% of all it parts with the Boxster. Look at this way, when someone pays over $100,000 for a 911, half of the car is a Boxster which cost about $50,000. That folks is how you make $28,000 per car.

And guess what. Porsche is striving to increase the profit per car. Line up and grab your ankles.

NJ-GT

Even at the cheaper U.S. prices, the dealers alone make a good chunk, and PCNA is still making money, and PAG is still making money on every U.S. car sold.

I'm more than ok with their prices, because it guarantees the service and sales quality that you won't find on other brands with similar prices such as BMW, Mercedes, Ford, GM, etc.

However, I think the 996 GT2 was a rip-off. They made a cheaper 996TT, with some GT3 bits, and sold it sky rocket high. I hope they bring the 997 GT2 at $130k or less.

TT Surgeon

Check out the PAG response on their website, sorry I can't get iot to link up. Rare that they actually respond to a article like this.

Joe S.

Porsche's response: http://www.porsche.com/usa/aboutpors...&id=2007-01-23

If they are making that on the base cars I'd hate to see what they are making on options...

krC2S

the difference in prices between different countires even without sales taxes, vat etc shows
how much margin porsche has

if you think US is cheap try 117k for an RS (with cf seats and rollbar) in UAE and they also don't pay sales taxes

mooty

i like that too, however, dont think that will come true.
GT3RS starts at 123k, 997TT at 122k.
based on those numbers, i think the minimum for GT3 would be 150-160k.

Rich.

I need to get my hands on some of that.

icon

i don't believe for a second that porsche makes 28k vs. bmw's 3.2k per vehicle.
the article also doesnt specify if their figure includes the dealers margin.
it provides no data and just says "a new study has found".
must have been done by a kindergarten class.
big intrnt'nl mfg's also utilize currency hedging to deal w/ markets like the u.s. which is porsche's biggest.
old pal nick, i'm sure ferrari is attempting to reduce profit per vehicle.
btw, i think that same study found that porsche was deep in talks w/ fiat to purchase their shares of ferrari.
better start reaching for your ankles!

edit: in pag's response it looks like the study did nothing more than take profits and divide by vehicles produced. real accurate information. NOT

Holger B

Jeff is right. Any high school kid can tell you that just dividing PAG's profits by the number of cars produced tells you nothing of any value. There are a lot of moving pieces that have nothing to do with the car business (tax rates, asset sales, hedging, consulting revenues, investment income, etc). You'd think even a journalist could have figured that out.

Holger B

Buy the stock.

Nordschleife

PAG has been an extremely good investment
PAG unloads development costs onto VW
PAG may may more money out of currency operations than it does out of cars
PAG has an extremely low variable cost