Porsche made almost £15k profit on EVERY car sold in 2016

GARY S said:

Porsche made 31648 of all 911 models in 2016 alone. Some months ago a member replied to a question of mine confirming that between 1993 & 1998 they only produces 61,000 of all model 993's. Of course the 993 was mostly hand assembled & Porsche profitability was marginal at best but it highlights today why:
1. The 993 is a better engineered car especially when compared to the M96/7 engine versions.
2. The 993 is a more exclusive & sought after car.
3. The price of a 993 has remained high despite its age. Posts here over the last 2 weeks report values of 1995/6 cars at specialist dealers at £55K and some 1998 wide body S's at top end £70K to £80. The cheapest 1998 996 on Autotrader on a trade sale I found is £10900. Says it all.

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GARY S said:

Porsche made 31648 of all 911 models in 2016 alone. Some months ago a member replied to a question of mine confirming that between 1993 & 1998 they only produces 61,000 of all model 993's. Of course the 993 was mostly hand assembled & Porsche profitability was marginal at best but it highlights today why:
1. The 993 is a better engineered car especially when compared to the M96/7 engine versions.
2. The 993 is a more exclusive & sought after car.
3. The price of a 993 has remained high despite its age. Posts here over the last 2 weeks report values of 1995/6 cars at specialist dealers at £55K and some 1998 wide body S's at top end £70K to £80. The cheapest 1998 996 on Autotrader on a trade sale I found is £10900. Says it all.

Click to expand...

GARY S said:

Porsche made 31648 of all 911 models in 2016 alone. Some months ago a member replied to a question of mine confirming that between 1993 & 1998 they only produces 61,000 of all model 993's. Of course the 993 was mostly hand assembled & Porsche profitability was marginal at best but it highlights today why:
1. The 993 is a better engineered car especially when compared to the M96/7 engine versions.
2. The 993 is a more exclusive & sought after car.
3. The price of a 993 has remained high despite its age. Posts here over the last 2 weeks report values of 1995/6 cars at specialist dealers at £55K and some 1998 wide body S's at top end £70K to £80. The cheapest 1998 996 on Autotrader on a trade sale I found is £10900. Says it all.

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bazhart said:

Visiting the Porsche factory when the 993 was in production revealed a very old fashioned production regime with engines built not that differently to us and body shells hand welded and shaped in places and clearly the lack of investment in new technology and designs was very prevalent.

At the time Porsche were stated as making the 968 and 993 at a loss and the City said that they would probably go bust.

This often happens when a good product stands the test of time and doesn't need re-designing and profits initially stand up due to minimal investment needed in design, development, production machinery and training but the lack of momentum that ignores modernisation eventually catches up when the amount needed them to make up for years of neglect can be impossible to find = much of British Industry late 20th Century.

The re-investment in the business (to save it) by the family coincided with a change in emphasis that was essential - to make money once again to re-invest in just about every aspect.

When I was the director of engine development at Armstrong I was flown down to Kent to assess the Motorcycle plant of Lord Hesketh similarly in financial trouble with a view to buying it - but found the same - old fashioned designs that cost too much to manufacture (and don't actually work that well either). I remember asking their designer why they had stuck to the old fashioned way of making gearboxes (that was more expensive than the Japanese methodology at the time and didn't work as well) to be told that the Japanese was just wasn't "proper engineering" because it was undeniably cheaper to produce. One still thrives - the other disappeared!

There is nothing wrong with a new design that does exactly the same job just as well as an established one - but costs much less to produce - especially as this allows the business to increase profits and the resulting investment sustains their market position.

But liquid cooling proved necessary (due to emissions legislation), and they tried to keep the flat 6 layout etc in a more cost effective design - and did really well as an entirely new product.

The only problem is if in focussing on a new cost effective design, the company don't make as good a product, or sells it for the same price (supported by the original reputation), make more money but do little or nothing to help fix a few problems their new product has created.

In many ways the 996/7 is as good and in some ways superior to the 993 and the Gen 2 even more so.

Without them we would have no new Porsche's anyway.

I think - in all the circumstances - they have done a brilliant job of renewing the marque so we can avoid the boredom of a standard drive and enjoy the potential performance, looks, image and thrill of driving a Porsche when we go about our daily business.

The only very minor downside was perhaps inevitable with so many new ideas needed to included in a new regime almost over night.

I guess VW will need the profit to pay off the consequences of the emissions scandal anyway but at least there should be enough left to continue to produce fantastic Sports cars that still excite and that I am so glad I am involved with daily.

Baz

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