Porsche raking in $23K profit per car

Porsche earned over $23,000 on every car the prestige manufacturer sold around the world last year, according to financial news outlet Bloomberg.com.

That figure is a factor derived from Zuffenhausen selling 238,000 vehicles globally, for a reported operating profit of €3.9 billion over the same period. Divide the latter figure by the former and you come up with $A23,333 at current exchange rates.

According to Bloomberg, Porsche's operating profit is up 14 per cent on the previous year's, but the profit per vehicle has risen by 'just' nine per cent. That suggests Porsche is buying additional sales volume in some parts of the world with lower-cost models – principally the Macan (pictured), which represents as much as 40 per cent of Porsche production.

For Aussies who love a good conspiracy theory, the $24,000 figure is an average figure calculated from sales across the world. Local 911 buyers are probably paying a bit more than that to line Porsche's pockets. American buyers, on the other hand, are likely paying less.

Porsche in Australia announced last week its new 2018 model year range, offering upgraded Porsche Connect, new exterior/interior colours and an optional 22kW performance boost for all 911 S variants. Priced at $24,580, the power package upgrade comprises "larger turbochargers, Sport Chrono package with dynamic engine mounts, a modified brake cooling system and a uniquely designed twin central tailpipe sports exhaust system". The new model year brings with it "price adjustments" as well.

In contrast with Porsche, BMW and Daimler (Mercedes-Benz) are making about US $5000 per vehicle from sales around the world, Bloomberg has revealed. But before we get the burning brands and pitchforks out for Porsche, consider Ferrari. Based on the storied Italian marque's operating profit and sales volumes, it's making almost US $90,000 a car – about A$118,000.

Bloomberg notes, however, that about 30 per cent of Ferrari's profit comes from "engines, key chains, amusement parks, and other things that don’t have wheels".

Unlike Ferrari, which restricts supply – and consequently boosts exclusivity – Porsche is in the business to sell cars. Production has increased by 47 per cent in three years. As mentioned already, the Macan is the prime mover for that rise in output.

One thing that the American market for Porsche shares with Australia is high-cost options. For the Macan, optional 21-inch wheels will set back American buyers US $5400, 'Espresso' leather seats cost US $4920 and heated seats, front and back, are going for US $1060. Running boards (US $1250), sports exhaust tailpipes (US $950), whitewashed oak trim (US $1790) and a prestige paint colour (US $6520) all add to the manufacturer's healthy bottom line.

“We’re concentrating on delighted customers,” Oliver Blume, chairman of the Porsche executive board, said in a statement.

Presumably Blume has one eye on delighting parent company Volkswagen's shareholders too.