What some companies earn per car

[Ottobon]

I'm sorry but is porsche 21,799 or just 799?

if so its amazing how they car sell a car thats nicer (Carrera S) than a Baby Aston, faster than a baby aston, and 20k(UK) less than a baby aston, and then somehow probably make 20k more profit for the company than a baby aston

[andrebsd]

Originally Posted by Ottobon

I'm sorry but is porsche 21,799 or just 799?

if so its amazing how they car sell a car thats nicer (Carrera S) than a Baby Aston, faster than a baby aston, and 20k(UK) less than a baby aston, and then somehow probably make 20k more profit for the company than a baby aston

I'm pretty sure it's 21,799. They are the most profitable car company, so making 799 simply wouldn't cut it. (And that explains why my Boxster interior feels cheap, lol)

[targa_997]

Do these figures include actual R&D costs (intended for future products)?

If not it's understandable that Porsche and BMW need high profit to re-invest: they are not sharing platforms, engines or any other components through a vast network of brands (in most cases, except Cayenne/Touareg/Q7 and Mini/PSA). Even within the brand itself, they share less components than the whole VW-Audi-Seat-Skoda group itself!

The lower the production, the higher the price of new techs per vehicle, and both Porsche and BMW are very competitive in terms of new techs.

[teletubby-warrior]

http://www.leftlanenews.com/2007/01/...rofit-figures/

Porsche has issued an official statement to the press refuting a claim by B&D Forecast that the automaker makes an average of $28,000 on every vehicle it sells. Porsche says the figure was derived by dividing the company's $2.7 billion profit by the 96,794 vehicles it sold in 2005. However, that figure includes one-time income not related to car sales.

"The calculation is misleading because it does not take into account the extensive one-off and extraordinary effects which impacted the pre-tax result of the Porsche Group in the 2005/06 financial year and which have nothing to do with the original Porsche business," the statement reads.

$263 million Euros of the pre-tax result comes from the participation in Volkswagen AG, the company said. Porsche also said it earned several hundred million from "hedging transactions in connection with the VW participation." Porsche also earned over $100 million from sale of CTS Fahrzeug-Dachsysteme. Although Porsche hasn't disclosed exactly what amount of profit comes from its vehicle business, it's safe to assume the automaker earned between $10,000 and $20,000 per car — still an impressive figure.

[Momentum57]

So Porsche is very good at investing, eh. Heres what I say, Porsche forget your want to take over VW and the automotive world, start to take over the financial world. Soon people will ask: "who do you have your money with, charles schwab?" "No, my money is with Porsche, and they gave me a 911 from my dividends."

[nist7]

Originally Posted by D-Fence

What they earn in average per sold car:

1. Porsche 21 799 €

The people who did the study are absolute idiots. Not only is it misleading the consumer into thinking that Porsche is marking up their cars by insane amounts the people who did this study obviously had no clue.

Here's why.

Let's say Joe and Adam are both construction business owners and they get paid by how many buildings they construct per year. Let's say that in a year, both Joe and Adam's business built 50 buildings. And they both priced each building at two million dollars. The cost to construct each building is actually one million dollars, so in reality both made the same profit per building. Right? 50 million dollars total profit at one million dollar per building.

But wait, let's look at their TOTAL profit. By sheer luck, Adam won the biggest lottery in the history of the world, which was worth a total of 600 million dollars after taxes. And so for that year Adam actually profitted 600 million dollars PLUS what he earned from his construction business.

So if you take into account his construction profit of 50 million dollars AND his lottery winnings, Adam has a total profit of 650 millions dollars.

ADAM: 650 million dollars /50 buildings = 13 million per building

JOE: 50 million dolalrs / 50 buildings = 1 million per building

So can you say that Adam earned 12 million more per building than Joe? Sure.

But what does this imply for the average reader? Well, let's not buy buildings from Adam because OBVIOUSLY he charges way too much per building than Joe!

Idiots.

[HeJo]

I think i should charge Porsche for using my excuses given above

Do these figures include actual R&D costs (intended for future products)?

Yes, you find the exact amounts in the Income Statement. They are deducted from the revenues to derive earnings.

But it should also be clear that bigger corporations have a disadvantage as far as overhead costs are concerned. If you have two plants and multiple vehicle groups your costs won't simply double they'll be much higher due to complexity in management, supply, bla... also smaller companies will have less problems dealing with slumps in demand where for the big corps this means layoffs and wasted resources.

In essence, one should compare whats comparable. However, if for some reasons pure sports cars experience a great enough slump in demand Porsche will be in trouble - that's the disadvantage in being a specialist manufacturer. Gotta have a good management there.

So Porsche is very good at investing, eh.

Well, the judgement on this is out - I would have declared someone who bought such a stake in VW insane. This corporation is a quagmire of state interests, inefficient production and so forth. Let's see if they can influence that for the better.