Dec 4, 2008

Porsche Posts $28,247 Average Profit Per Vehicle

A study by B&D Forecast released in German newspaper Welt am Sonntagearlier this week revealed that Porsche, one of the most prestigious names in the automotive industry, is by far the most profitable automaker on a vehicle by vehicle basis. Porsche makes an unheard of €21,799 profit on each car it sells! This isn't to say that Porsche is making €21,799 ($28,247 USD) straight up on every vehicle it makes, but rather that it earns variable profits, with some more (Cayenne Turbo S) and some less (Boxster). To see just how badly Porsche blows other automakers out of the water, have a look at these figures. BMW makes €2,475 ($3,207) for each car it sells - a handsome figure, no question. Toyota pulls in an average of €1,684 ($2,182), while Audi makes €1,580 ($2,047). DaimlerChrysler (including Mercedes-Benz and Smart) makes €708 ($917), and VW makes just €332 ($430) per vehicle. The study, which looked at the company's finances over 2005-2006 financial year, also revealed that Porsche sold 97,000 units and had a record gain of €2.11 billion ($2.73 bn) before taxes.

No doubt, the development costs of the Cayenne (shared with Volkswagen)and the Cayman (shared with the 911 and Boxster), plus the shared components amongst all of its sports cars has some influence over profitability, but it's not like BMW, Audi and every other manufacturer doesn't share components to take advantage

of economies of scale. More precisely, these figures reveal how profitable Porsche's auto operation really is. It's no wonder the brand was in a position to purchase such a large share of Volkswagen Group.

In other Porsche-related news, Motor Authority reports that the almighty 911 is about to receive an update for 2008. Exterior changes - if there are any - will be extremely minor with subtle tweaks here and there. The main update that one should expect to see for the '08 911 is the introduction of the DFI direct fuel injection system that made its debut on the Cayenne sport utility vehicle at Detroit. In The Cayenne, Porsche posted gains in power of between 5 and 25 hp, depending on model, and drops in fuel consumption to the tune of 10-15 percent. These changes aren't exactly monumental we admit, but in the case of the 911, more power is never a bad thing.

The update could also mark the introduction of the long-awaited twin-clutch gearbox for Porsche. For over a year we've been hearing rumors about Porsche preparing a DSG-style twin-clutch gearbox as a successor to its Tiptronic automatic. It would be the perfect time to introduce the gearbox, adding importance to this technical update, not to mention that it’d be the first twin-clutch gearbox to be developed outside of the VAG kingdom. As Volkswagen, Audi and its subsidiaries have proven, the twin-clutch gearbox provides the smoothness of an automatic gearbox while actuating quicker shifts than a regular manual. That's a welcome change for the enthusiast who wants lightning quick performance, plus the convenience and refinement of an automatic. It truly closes the gap between cars with and without clutch pedals, and will be a true benefit to Porsche from a driving perspective, while no doubt increasing its sales and profitability yet further.