View Single Post
      08-22-2019, 10:08 AM   #103
Second Lieutenant

Drives: NA
Join Date: Apr 2016
Location: USA

iTrader: (0)

Originally Posted by clee1982 View Post
Originally Posted by vitaly View Post
Is there evidence that R&D flows in the VW/Audi -> Porsche direction? I know everyone likes to say this, but is there anything to that besides speculation? If anything, I'd imagine Porsche innovation/research trickles down to VW/Audi, not the other direction.
Regarding if it's VW/Audi to Porsche or Porsche to VW/Audi, it's shared, which is the point (on cost)
But we're talking about strictly Porsche's financial performance, not VAG as a whole. Obviously having VAG as parent helps with a larger balance sheet, access to (presumably) cheaper financing, and so on. But Porsche itself is thriving. Every car they make they knock it out of the park. Let's see how the Taycan does, which is relatively new ground for them. I predict demand will outpace supply and they'll have a similar margin on that car as well.

Porsche is more expensive than BMW. We can argue about features, tech, build quality and so on differences but the bottom line is customers are willing to pay for it. Reputation is king in this (and other) businesses. If the customer believes they're getting a premium product, they'll pay for it again and again even if objectively it's not as premium as one perceives. But of course they need to deliver as well, and they do. It's a very slim margin for error. If you tarnish it, it'll take a long time to rebuild, if ever.