(BroBible.com)
Monday, March 20, 2017
Less Is More Profitable
Porsche pockets $17,250 profit on every vehicle
Porsche’s profit machine, already humming, just shifted up.
The Volkswagen AG brand delivered 238,000 vehicles last year and posted an operating profit of 3.9 billion euros ($4.1 billion), up 14 percent from 2015. Put those numbers together and it’s on pace to net about $17,250 a vehicle, up 9 percent.
Its Teutonic peers don’t have nearly as much profit punch. Daimler AG pocketed about $5,000 a vehicle last year, roughly the same margin BMW AG has been managing. Part of the money magic is simply price. Porsche doesn’t make cheap cars. Even luxury players like Mercedes occasionally offer more pedestrian versions at narrower margins to get aspiring buyers into the family. And make no mistake, Porsche customers are paying a premium for the brand’s reputation.
(AutoNews.com)
Porsche’s profit machine, already humming, just shifted up.
The Volkswagen AG brand delivered 238,000 vehicles last year and posted an operating profit of 3.9 billion euros ($4.1 billion), up 14 percent from 2015. Put those numbers together and it’s on pace to net about $17,250 a vehicle, up 9 percent.
Its Teutonic peers don’t have nearly as much profit punch. Daimler AG pocketed about $5,000 a vehicle last year, roughly the same margin BMW AG has been managing. Part of the money magic is simply price. Porsche doesn’t make cheap cars. Even luxury players like Mercedes occasionally offer more pedestrian versions at narrower margins to get aspiring buyers into the family. And make no mistake, Porsche customers are paying a premium for the brand’s reputation.
(AutoNews.com)
This Could Be An Interesting Project
Junkyard Gem: 1989 Toyota Corolla All-Trac Station Wagon
It was only 778 miles from a quarter-million when it came to this place.
(AutoBlog.com)
It was only 778 miles from a quarter-million when it came to this place.
(AutoBlog.com)
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