http://autos.yahoo.com/news/volkswag...015402399.html

 

Figures.
They charge us for a fully loaded car, but hold back the options.
Then they charge us more to put the optins back on it.

 

What they don't say is how much of that operating profit came from the Weissach and other technical and consulting operations. The profits on these are included in the overall profits of Porsche thus tainting the numbers significantly.

 

So that's where my $500 red seat belts are going...

 

Here's another interesting article that appeared in the Wall St. Journal last week :

Europe's largest automotive group said Thursday that Porsche AG, the tiny sports-car maker acquired by VW in 2012, churned out nearly as much profit as the much larger flagship VW brand. Propelled by Porsche, an otherwise sluggish VW group posted a small 1.5% rise in operating profit to €11.7 billion ($16.26 billion).

Although Porsche sold only 155,000 cars last year, dwarfed by the VW brand's sales of 4.7 million cars, the sports-car maker reported a 173% surge in operating profit to €2.6 billion, making nearly as high a profit contribution to the group as the VW brand passenger-car division. Profit at the VW brand unit fell 21% to €2.9 billion.

http://online.wsj.com/news/articles/...769480200.html

 

I don't think much of their margin. I pay what I think items are worth to me, and despite having lots of good cars to choose from, I chose my 911_50. I just keep reminding myself that margin is also a function of their design, engineering, and manufacturing efficiency.

 

Whine, whine, whine.. Buy the car with whatever you want on it, if is worth it to you, if not go buy something else..

What Porsche makes on margin, and how they option it out is irrelevant. It is also hard to understand what margin is unless you decompose the books and understand long term investment strategy in a product line.. How much prior investment goes into the current cost..

People loved to belly ache about $600 toilet seats and wrenches back in the space days, but they never had any understanding of what goes into cost and recovery of investment.. And the margin on any product is never as simplistic as a cost+ model..

But all aside it is capitalism, you get what you can because the market supports it.

Yeah of course, we all want things the way we want it. I'd like a fully option Turbo S for $95K. Ain't happening no matter how much I talk about it and say "it should" be that way...

 

They are in a good place but they will need to deliver on the expectation of top quality and service, in order for it to last.

Things like GT3 bonfires and nmurray2's lemon are not making them look worthy.
Are they going GM on us?

They should be giving new cars and some heavy perks to these people and not flinching about it.

 

I think the "are they going GM on us comment" is particularly insightful. What is the message that they takes away from this and what do they do? Do they seek to pump up Porsche sales by cross branding into the VW line? Can Porsche profits, quality and image survive a doubling of volume, or more? Or are they going to realize that Porsche is in a sweet spot (at least for now). They sell some aspirational cars, but cars that are not so out there in cost or so impractical that they are unattainable or unusable. Many can stretch just a bit to get one because of their DD driveability, reliability and practicality. And yet they have some exclusivity. Chevy managed to do that with the Vette (although I think it is less practical), Maserati and Jag are making nice strides into this same niche as well.


I wonder how big that market is, and how flexible. If Porsche come out with a hot hatch based on the Golf, at 40 K, they may sell a lot of them. But will it tarnish the brand so that not as many people will buy a 911? and what if it just starts diluting itself with too many other models? Will quality last? Will brand interest?


Stay tuned. And don't sell your 2012 991s - they are the last Porsche 911s made before VW. They might be collectable - in 100 years or so!

 

actually panameras and cayennes have a lot from VW and they have so many pieces in comon with all the cars between VAG and porsche.

 

Agreed, they are losing too much of the shine the earned over the decades. Don't forget about the Metzger coolant issue in 997 GT3's. They better tighten this mess up fast.

 

 

^ This is great. I'll take mine with deviated stitching in red!

 

Like others have said, it is not that simple... How much does Porsche benefit from the purchasing power of the VW group? of sharing some of the manufacturing assets without having to invest in full themselves? how much did they have to pay VAG for the Cayenne and Macan platforms? how much is VW paying to Porsche for engineering services? etc.

I do not think there is a straight answer and do not really care to be honest. Cars are sold at the price we are ready to pay for them.
As far as quality quirks are concerned, they have been a number of them over the years and they never really damaged the brand equity.
What really matters to me is not badge exclusivity or snobbery, but that Porsche keeps making great cars. My 991 is the best car I have ever driven and if it takes 100,000 Cayennes and Macans to deliver the cash flow, so be it.
And BTW, the Cayenne is a great SUV and I would have one if there was a 3 row version (I would not ***** about brand dilution but I would ditch my Infiniti and get one).

I do not think we should be worried. VW has a smart management that knows the value of segmentation and brand equity. They have done a remarkable job at the other end of the food chain with Skoda and Seat, they have brought Audi at the level of BMW and Mercedes in just a few years. They have resurrected Lambo (and Bugatti). So far, they have never hurt the value of the brands they owned and have done their best to preserve their identity.
Let's give them the benefit of the doubt...

 

Bet that's a lot more than $600..


And I just know someone around here is going to complain it should be standard....