Interesting article on Porsche profit margins

[www.businessinsider.com]

From 28% In 2007 to 15% in 2015, as the car maker sells more cars. More SUVs and sedans in the mix, fewer sports cars as a % of cars sold during the years in question.

there's no question that margins fall when one enters a mass market at volume. But does that dilute their profitability? Their ability to perform R&D? No, in fact it enhances it. The obvious danger is that they adapt to the hgiher levels, become a bigger and more bureaucratic firm, and lose indirectly.

One thing it says is that the pepper is not "just a tarted up Audi" - its 70% porsche.

Me, I like my Audi :-)

Grant

gee-lenahan-at-gee-mail-dot-com

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grant
there's no question that margins fall when one enters a mass market at volume. But does that dilute their profitability? Their ability to perform R&D? No, in fact it enhances it.

You are correct.... however... as long as the mother ship doesn't harvest the profit. VW is in a world of hurt right now..... I would love to witness the arguments between senior execs on where the Porsche profits go.

Peace
Bruce in Philly

...I just got my formal offer of buyback from VW. I will get $24,000. for a five year old Jetta Sportwagon with 32K miles. I accepted.

I replaced it with a 2017 Golf Alltrack.

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dennisafrompa
...I just got my formal offer of buyback from VW. I will get $24,000. for a five year old Jetta Sportwagon with 32K miles. I accepted.

I replaced it with a 2017 Golf Alltrack.

That's excellent! Hope you enjoy the Alltrack Dennis.

I like mine, too. A very pleasant car to drive, and own. And Guenter, too, liked his plenty, until shifting for yourself was no longer available.

No mistake, if Porsche offered me a Macan S on an even trade for my Audi, I'd likely take it (if the Macan the right suspension set-up for me). But last time I checked, the Macan, suitably optioned, was about 60% more expensive than my Allroad.