What Really Profits Porsche

"Axel-Ripper" (Axel-Ripper) 10/13/2013 at 12:28 • Filed to: Porsche

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So I got bored this morning, and noting some comments on the Porsche article on the front page, I decided to see what was up with the Porsche. There are people hating on Porsche for "killing their brand" for selling non-sports cars, which were quickly rebutted by people saying that these other cars were needed to fund the rest of the models. Well, I figured it was time to see if this was actually true.

Based on sales figures found here: !!!error: Indecipherable SUB-paragraph formatting!!! which are the Porsche reported sales figures per model in the US for 2012, I created a spreadsheet (and no, I didn't really spend much time formatting, so there are decimals on the sales numbers, deal with it). For the price figures, since there are not really per-submodel figures anywhere, I looked at the MSRP and estimated the average cost of each model family by guessing what is about the middle price in the field. This is a rough figure, but it could increase for some models (say if more $141k Panamera Turbos are sold than $78k base Panameras, or different options... Its an estimate).

Either way, if you figure median figures for the costs, you can see that yes, infact, the Cayenne makes up almost 50% of Porsche's US profits, bringing in over half-again more money than the 911, and the "base model" Boxter's and Caymans really don't bring in anything at all, but their niche is still filled.

This is of course, very rough, but I think it serves to prove a point.

Goshen, formerly Darkcode > Axel-Ripper 10/13/2013 at 12:33

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I'm actually surprised the 911 sells more than the Panamera.

themanwithsauce - has as many vehicles as job titles > Axel-Ripper 10/13/2013 at 12:34

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As a porchephile, I understand that we must praise the cayenne for allowing Porsche to return to Le Mans. With that one model line almost doubling their profit, I don't think it's a stretch to say that the extra cash flow is what is allowing them to do this. Also they made a cayenne GTS with a 6-speed manual and 430hp V8. It is automatically one of the best SUVs imaginable because of this.

Chase > Axel-Ripper 10/13/2013 at 12:36

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nevermind, i made a stupid

Kailand09 > Axel-Ripper 10/13/2013 at 12:38

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How sad, that the boxter and cayman have to be lumped together... Had they made the cayman a bit better, it would be such an amazing car. Already is awesome, but so much room for improvement, I prefer it over the 911.

Victorious Secret > Axel-Ripper 10/13/2013 at 12:39

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Don't use real numbers, the internet can't handle it.

The Cayenne alone could float Porsche for the rest of time, the Macan only serves to give their R/D side more moolah to blow.

aquila121 > Axel-Ripper 10/13/2013 at 12:45

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Wait, you're telling me that Panamera sales are about 1,000 units behind 911s? Ugh. Also, I despise the Porsche SUV that can't go off-road, but apparently rich people love it. (I shall never be rich!)

Axel-Ripper > aquila121 10/13/2013 at 13:29

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Yes, but I also think it there are likely more people buying top level Panameras than top level 911s. Just speculation, but who knows.

And yes, rich soccer moms fund R&D on mid life crisis snap-oversteer machines.

Alex87f > Axel-Ripper 10/13/2013 at 14:02

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6.01% for the Boxter / Cayman?

This is surprisingly low... I would have expected something at least close to the 911..

gometz > themanwithsauce - has as many vehicles as job titles 10/13/2013 at 14:52

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A Porsche-phile who can't spell Porsche?

gometz > Axel-Ripper 10/13/2013 at 14:54

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Wait, if I am understanding this correctly, you calculated the revenue from each model, not the profit.

themanwithsauce - has as many vehicles as job titles > gometz 10/13/2013 at 15:00

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a porschephile with a crappy keyboard

Axel-Ripper > gometz 10/13/2013 at 15:05

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Correct. I did not adjust for R&D or production costs. However, you could probably assume the SUV's would likely have lower costs than the various levels of 911.

aquila121 > Axel-Ripper 10/13/2013 at 16:23

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"Nissan! What the f*** have you been doing with your Quest minivan profits?? Where's that Toyobaru fighter/Silvia revival?!" Oh, sorry—I missed the "rich" part, and that assumes profits from Quest sales.

Axel-Ripper > aquila121 10/13/2013 at 16:26

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Manuél Ferrari > Kailand09 10/13/2013 at 17:08

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One of my college professors used Porsche as an example of cannibalization before the Cayman even came out. He said Porsche corporate learned a lesson from the 944. The 944 got too good and ate into 911 sales, therefore hurting profits since the 944 was the cheaper model. The 944 Turbo was in many ways the better car than the then-current base Carrera.

Porsche isn't letting their engineers repeat this situation. They ensure that it's impossible to configure a Cayman that will outperform a Carrera at a lower price point. You can spec a Cayman S with a ton of features to make it competitive with a Carrera with no options, but Porsche is OK with that since the cost of that Cayman S will be high and they'll make their money.

Porsche will ensure that no matter what type of Cayman you get there will always be a higher performing 911 at a higher price point. The next Cayman R will be nice, but not as nice as a GT3. It's annoying but there is nothing any of us can do about it.

Kailand09 > Manuél Ferrari 10/13/2013 at 19:58

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That's a very good point, we talked about this in econ... It is smart on porsche's end, just a bummer as an enthusiast. They should just nix the carrera and make the cayman king!

Yeah that won't happen... Oh well, both are very awesome cars so it's all good.

Manuél Ferrari > Kailand09 10/13/2013 at 20:04

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It is a bummer for enthusiasts. And I dunno if it's really that necessary anymore. The percentage of Porsche buyers who were enthusiasts was higher in the 1980s. These days a lot of people buy Porsches for status. I have talked to so many people that say they would never buy a Boxster or Cayman. They think the 911 is the "only" Porsche sports car and that any model under it is for girls (if they are a guy) and for losers (if they are a girl).

If the Cayman S had the same exact 3.8L as the Carrera S then it would probably eat into 911 sales somewhat, but maybe not that much. A lot of people would still buy the 911 just for the status that comes with it.

Kailand09 > Manuél Ferrari 10/13/2013 at 20:12

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Agreed, and it's kinda insane that that is the case. Though a lot of car sales are that way - just about the name and not what the thing actually is.

aquila121 > Axel-Ripper 10/13/2013 at 20:34

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