Porsche Makes The Most Nett Profit On Each Car Sold
Did you know that Porsche makes USD23,000 on every car it sells, which is a profit margin of 18 percent. This is much more that than the amount of profit that Volkswagen Group other brands like Audi, Bentley and Lamborghini make on each car.
In an annual report, Bentley wasn’t far behind the German brand, with over USD20,000 in profits per car. VW considers Lamborghini a part of Audi and the two brands managed just USD5,200 in profits per vehicle. In comparison, the Volkswagen brand itself made just USD850 per car, a 2.9 percent profit margin.
The fallout from the Great Recession is still affecting sales of mainstream models, but expensive luxury and exotic cars are selling quite well. Their wealthy buyers simply weren’t affected by the stagnant global economy so unlike the typical Jetta or Passat customer where they are not hesitating to make new-car purchases.
Upscale brands also have less direct competition: There aren’t as many makers of premium sports cars as there are of midsize sedans. Buyers are also more likely to make their choices based on subjective qualities, rather than objective metrics like fuel economy, interior space, or price.
However, all of those factors apply to Bentley, Lamborghini and to a lesser extent Audi. So why is Porsche the profit leader?
One reason may be Porsche’s position in the VW Group hierarchy. Its products are definitely exclusive, but they’re produced in larger numbers than anything from Bentley or Lamborghini. There is also more parts sharing between Porsche and the more mainstream brands, which brings costs down.
Case in point: The Porsche Cayenne SUV has been the brand’s best-selling model for years. Its price and performance put it a level above the Audi Q7, but the Cayenne still shares a platform with it and the Volkswagen Touareg. It is also just the kind of car people want to buy today. Even members of the ‘super rich club’ need to haul kids and groceries, and it is hard to do that in a 911. Porsche is successful because it has both models in its showrooms.
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