Porsche is smashing sales targets left and right and the financial report the brand just released is a testament to the fact. For each car the German sports car manufacturer sells the company bags a more than healthy $17,250 (€16,500) profit.
The only manufacturer that turns a greater average profit per car as of this moment is supercar manufacturer Ferrari. However, the amount of cars sold is what makes Porsche’s achievement so impressive. Porsche sold no less than 238,000 vehicles last year and posted an operating profit of €3.9 billion, a 14% increase over 2015.
Other German premium automakers such as BMW and Mercedes-Benz don’t come even close to the impressive average profit per car Porsche turns. Both pocketed an average of €5,000 per car sold, less than 1/3 of Porsche’s profit per car. Both BMW and Mercedes-Benz have a larger model range and also serve lower segments of the market, but the difference does imply that customers are willing to put more money on the table to purchase a Porsche.
Despite the fact that customers are still willing to pay a hefty premium for the brand’s reputation, there is no denying that Porsche is simply not that precious of a brand anymore. In terms of products the company is now about 1/10th the size of BMW, and boosted annual sales by 47% in the past three years. Especially the SUVs are doing well in terms of the amount of deliveries, the difference between Porsche today and Porsche ten years ago is without doubt huge!
To put things into perspective, the brand’s entry model Porsche Macan now accounts for about 40% of total Porsche sales. At a starting price of $47,500 the Macan is a fairly affordable premium cross-over, but entry-level bare Macans are not what brings Porsche these insane profit numbers. Customers that go with a Porsche often spec thousands of dollars worth of options – and those options don’t come cheap. For reference: custom paint on the Macan will set you back $6,520 and a larger set of 21-inch wheels add an extra $5,400 to the bill.
Porsche’s prosperity also has rather positive consequences for its 21,000 employees. Christmas came early so to speak, as there is €9,111 bonus made available for each employee. The figure is a record high and tops that of 2016’s €8,911. If you are wondering about the numbers, yes they are clearly a reference to the brand’s legendary 911 model! Of the bonus amount each employee will see €700 deposited in the pension fund, leaving almost €8,500 to spend on other things. Well done Porsche!
