Porsche makes $550K per hour

Pressure Ratio

....
TCG Premium
Nov 11, 2005
20,305
11,730
Glen Ellyn
A while back Mook posted an article that showed Ferarri makes $80k profit per car. And that Porsche makes about $17K per car. Well, it seems that even though they only make $17k per car, they are doing quite well. haha



Porsche’s annual report reveals the company was making $550,595 per hour last year and is in remarkably good health.
The financial crisis Porsche found itself in at the start of the 1990s seems distant in the rearview mirror now. In 1992, the company was dangling on the brink of bankruptcy. Between the recession wreaking havoc on sales, costs spiraling out of control and a less than ideal manufacturing system, things looked bleak at the end of the last century. However, according to CNBC and Porsche’s latest annual report, the company is now in the rudest of health with a 2017 profit of $4.82 billion.

To break that number down and gain some perspective, CNBC has done the math to work out Porsche is averaging, and you might want to strap in for this, $13.2 million each day and $92.8 million in profit per week. To break that down even further, that’s $9,176 per minute and $153 per second through 2017.

Earlier in the year, we got a snapshot of how Porsche is doing in terms of profit with Bloomberg estimating around $17,250 in profit per-car. For perspective there, that kind of money would buy you a whole new Kia Soul and leave you with enough cash in your pocket for a decent meal with some friends. Compared with Porsche’s German rivals, BMW and Mercedes are making around $5,000 per car. For perspective there, you could pick up a used 2005 Mazda 3 in decent condition and maybe fill it up with fuel for the journey home for that money.

Porsche’s financial success and profit growth are down to a solid strategy. With an average vehicle sale of $99,000, Porsche is using neither BMW and Mercedes volume approach or Ferrari’s business model that inflates prices through scarcity. Porsche is concentrating on building the cars that make their customers happy. It sounds simplistic, but Porsche is showing the world that if you build something people love, then they will part with good money for it.
 

Pressure Ratio

....
TCG Premium
Nov 11, 2005
20,305
11,730
Glen Ellyn
Original post article

https://rennlist.com/articles/porsche-made-a-staggering-profit/



Here is the cnbc article the original article mentions.

https://www.cnbc.com/2018/11/08/how-much-profit-before-taxes-porsche-averaged-a-day-in-2017.html

Luxury car company Porsche, founded in 1948, made more than 4.22 billion euros in profit before taxes in 2017, according to its annual report. Based on the Nov. 8 exchange rate, that's more than $4.82 billion.

Divide that yearly number into seconds and the company made an average of just under $153 every second.

It's also an average of more than $9,176 every minute, nearly $550,595 every hour, more than $13.2 million every day and nearly $92.8 million every week.


Putting the numbers into perspective, every six seconds, Porsche made an average of just more than $917 in profit before taxes in 2017. That's more than the median weekly earnings in the U.S. for wage and salary workers in the third quarter of 2018, which was $887 a week, according to the Bureau of Labor Statistics.


When it comes to revenue, Porsche brought in 23.49 billion euros in 2017, which is more than $26.85 billion (using Nov. 8 rates). That translates to an average of nearly $73.6 million a day.

In September, U.K.-based car insurance provider Staveley Head looked at the financials of 14 iconic car brands, including Porsche. According to Staveley Head, Porsche is ranked fourth in profit before taxes among Mercedes-Benz, Ford, Hyundai, Renault, Subaru, Toyota, Bentley, Volkswagen, Skoda, Jaguar Land Rover, SEAT, Ferrari and Aston Martin. Toyota came in first, Mercedes-Benz came in second, and Ford came in third.

The price of a Porsche — the brand is a unit of Volkswagen — ranges from around $49,000 on the low end to nearly $300,000 on the high end, according to Car and Driver.
 

Pressure Ratio

....
TCG Premium
Nov 11, 2005
20,305
11,730
Glen Ellyn
Like the last line of the article says " Porsche is showing the world that if you build something people love, then they will part with good money for it." People are passionate about their cars. Build a car they can be passionate about and it will sell.

Porsche is actually offering a rental fleet to, I believe, Turo. RIght now just in California and somewhere else right now. So they can get more people to try their cars. Especially younger people who might get hooked on them and buy their cars when they can afford them.

They also have an amazing driving center in Atlanta and coming to Los Angeles. You can rent several of their car offerings to go on the track with instructors. They want to hook people on their cars as well as show them how to get the most out of their cars on the track. Or the Cayenne off-road.


https://www.porschedriving.com/home

https://www.porschedriving.com/porsche-track-experience
 

Thirdgen89GTA

Aka "That Focus RS Guy"
TCG Premium
Sep 19, 2010
19,299
15,654
Rockford
Real Name
Bill
I suppose its also nice that if you walked into a Porsche dealer and told them your car broke on track, they'll fix it as long as it really wasn't gross abuse.

I never understood all that crap with the "look at how awesome this car is on track" adverts and press. But then when it breaks on track they call it abuse and try to void the warranty.
 
Old Thread: Hello . There have been no replies in this thread for 90 days.
Content in this thread may no longer be relevant. Consider starting a new thread to get fresh replies.

Thread Info