Porsche profit per car totaled $17,250 in 2016, could go higher with digital services

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2017 Porsche 911 Carrera GTS

2017 Porsche 911 Carrera GTS

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Porsche delivered 238,000 cars in 2016 and banked 3.9 billion euros (approximately $4.1 billion) in operating profit. That works out to roughly $17,250 in operating profit per car, up 9 percent on 2015's results.

BMW and Mercedes-Benz are looking at around $5,000 per car. Ferrari, meanwhile, can count on a staggering $90,000 per car though is only selling around 8,000 cars annually at present, Bloomberg reports.

Rather than limiting supply like Ferrari, Porsche makes most of those extra dollars through the long list of desirable add-ons. Even for the base Macan which starts below $50,000, Porsche offers big-ticket items such as special paint finishes ($6,520), 21-inch wheels ($5,400) and premium leather ($4,920).

But Porsche sees room for more profit via the new business area of digital services. You’ll recall the automaker in 2016 established the new “digitization” department. Rather than mechanical engineers, here you’ll find IT specialists developing services such as real-time traffic updates, remote vehicle monitoring, and parking spot finders. And as electric and fully self-driving cars being commonplace, we'll see some new services in these fields, too.

Porsche Mission E concept, 2015 Frankfurt Auto Show

Porsche Mission E concept, 2015 Frankfurt Auto Show

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Porsche isn’t working alone in the area of digital services. The automaker also plans to acquire or partner with external partners such as startups and established tech firms, in Germany and in other countries.

Speaking with Bloomberg, CFO Lutz Meschke said that Porsche’s goal was to generate at least 10 percent of annual revenue from digital services in the medium term.

To help fund this shift, Porsche will reduce costs in other areas. CEO Oliver Blume said Porsche will reduce production costs for some vehicles by as much as 15 percent via greater integration with other Volkswagen Group brands.

For example, Porsche reduced the cost of developing the second-generation Panamera by sharing its MSB platform with Bentley’s next-generation Continental GT and Flying Spur. Porsche will even be building the rolling chassis for the Bentley models at the same plant in Leipzig, Germany where the Panamera is built. There’s the possibility the MSB also ends in a new sedan for fellow VW Group bramd Bugatti.

 
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