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Originally Posted by st-anger
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Originally Posted by ARMAN
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Originally Posted by AlienDB7
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Great pix on the castle :shock:
But is this true? - "These days, Porsche is the most profitable car manufacturer in the world..." |
that´s 101% true.....  |
What Porsche means when they say that they are the most profitable car manufacture is that they have the highest profit margins. So for every euro of sales they retain more euros in profit than there competitors. Porsche averages around 6% while the rest of the industry averages 2%. For comparison, BMW has ½ the profit margins of Porsche at 3%. Their net profit as measured in euros, as has been pointed out, is not the largest.
This didn’t use to be the case in the late 80’ & early 90’s. Porsche since has replaced handcrafting & implemented advanced manufacturing technology. They eliminated less successful models like the 928 & 968. Replaced those with the Boxster and 996 which at the time they introduced them shared 38% of their parts. They got out of Company sponsored motor racing which is extremely costly and not very profitable. They also benefited from the rising dollar.
I can’t say for certain but I would guess the falling dollar is going to hurt Porsche’s profitability since 50% of sales are in the U.S. Someone may be able to clarify this, but from what I have seen Porsche hasn’t increase the price of the cars to anywhere close to offset the 20% decline in dollar valuations with the euro over the past 2 years. Makes me wonder if Porsche will start a production plant in the U.S. so that their manufacturing costs will be denominated in the same currency as sales like BMW & Toyota.