Quote:
Originally Posted by Fahrvergnügen
None of this is a surprise, really.
Porsche has always had a higher profit margin per vehicle than BMW.
For every 1 Porsche, 10 BMWs are made... BMW has a different business model - appealing to mass market. However, BMW only has 2x the amount of R&D costs compared to Porsche. So does that mean more engineering goes into each Porsche?
BMW also competes in a more competitive market with MB, Audi, Lexus, basically any 'premium brand', whereas Porsche has fewer competitors (especially for their sports cars). This allows Porsche to price their vehicles higher by placing a value on the 'Brand' or uniqueness of their vehicles. There's no question you pay more for the Porsche brand. Ferrari even more so.
If you're a value buyer, yes BMW makes less money off of you (whether that is from lower price points or less efficient operating model). If you look at GM/Ford, I'm sure they make even less money off you. GM/Ford are like the Wal-Mart of the car world.
Perhaps Porsche is a more efficiently run company playing in a semi-niche market where they can set the price more freely. Like I said, different business model. Thank goodness, cars are not commodities (yet) so P&L statements only tell a part of the story.
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You hit the nail on the head.
Unfortunately, this is why BMW has had to water down their cars big time. Porsche, aside from the electric steering, is still a true driver's car.