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Their premium top level high priced models greatly help this average number.
 

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When the cadallac escalade came out at 50k, they made 25K profit off every one sold. My ex father in law was a bigshot at GM and told me the profit margin.

How much do you think Jaguar makes off each �� ?
 

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I don't think anybody REALLY knows what ANY automaker makes per vehicle.... If we all knew, we would scream about all of them....


What is really interesting is how they/we make us believe they are worth it... and are willing to pay whatever to get that vehicle... People that buy 100K + Porsches, really don't care how much Porsche is making, and prob really don't dicker that hard with the dealer that sells them..They just want that car..... " Oh , you have one in white? Great ! I'll take it ..!"
 

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BMW is also reputed to carry some of the best margins in the industry.
 

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When the cadallac escalade came out at 50k, they made 25K profit off every one sold. My ex father in law was a bigshot at GM and told me the profit margin.

How much do you think Jaguar makes off each �� ?

I believe they make a pretty penny off the FE and S models, pretty good off R-Sports and probably more like industry average off the other models.


This was my point in a post quite some time ago. A base model without a lot of options is clearly going to have the lowest margin, but as you add capability either by directly adding those options, or buying models that have those options included, the margin goes up for the manufacturer exponentially.

Ford also makes something like $10k to $15k on each F150 pickup. I'm sure GM and Dodge are in the same boat on Pickups as well.
 

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Discussion Starter #7
Shocked to here how incredible their margins are. In the article it says BMW makes an average of 5k off each vehicle which is a little easier to swallow compared to close to 20k!
 

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Imagine how much Bugatti makes on every car it sells. The new Chiron is going for $2.7 mil. I'm excited for mine to arrive.

I wish.
 

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Imagine how much Bugatti makes on every car it sells. The new Chiron is going for $2.7 mil. I'm excited for mine to arrive. I wish.
I heard Bugatti lost money on every Veyron they sold. It's probably why the Chiron is priced so high.
*Veyron* ??? *Chiron* ???
Just imagine what their margin would be if they named one *LeBron* !!! >:)
 
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I got some crayons and a puppy, and I ain't sharing..
 

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Meh, I'm self employed and before I really started screwing around I owned my own company. That said lets face it, corporations runs everything. 50k a plate dinners aren't actually charities, the corporations who pay that expect results from their investment and there is no longer any such thing as a free market anywhere a major enterprise is at work. As to the P cars, options are massively profitable, often approaching 100%. and P cars come with few options in their base form in any variant. Most of you know what I'm talking about but with Porsche it doesn't matter if you get the base car, the S, the GTS, the Turbo, the Turbo S, most things are an option until you get to the top of that ladder. Even then you'll be paying for things on the option list that are included in a higher trim level with other brands or do without. That is supported primarily by brand loyalty, marketing, and psychology.

The psychological aspect at play is that it takes a while to lose a good reputation and even longer to outlive a bad one. An example would be Toyota. Go back a long way when we first saw them in the US and they were tin cans that were regarded as cars for kids who couldn't do any better. After a time they earned a reputation for better quality. Move forward to the dark years in US car production, say mid 80s and by then they were much more reliable than US. Not just anecdotally, by the numbers, and people had become believers. The entire Japanese car industry followed that same trend for the most part. Move ahead to the early ninties and US OEMs were beginning to understand that poor residuals were in large part fueled by poor quality and this was hurting the bottom line. They began working at it and it would take more than ten years before the data supported the fact that they had caught up to the Japanese but the perception out there still remains that Japanese cars are more reliable. When a Toyota breaks down it's an outlier, a Ford, it's cheap American crap. The reality is that neither is true but perceptions lag behind.

The Porsches of this world, they sell largely because people haven't figured out that they aren't what they used to be. You only have to go back to the introduction of C6 in 04 and you have a car that performed on par with a 911s. The Porsche was more expensive but not so much more expensive. I was looking at both and a loaded Vette was going to run me 60, the 911 was 90k. Keep in mind the Z06 wouldn't come out until the next model year. You're thinking wait a minute, that is hugely more expensive and you're right but the cars were not equal. The interior of the 911 was much nicer. Not slightly nicer, much nicer. It had a better subjective feel across the board and in some cases not by a little. I'm not going to try and guess where anyone would fall in terms of subjectives versus performance but the 911 produced similar numbers and was a much nicer place to be and better driver all around. An argument could be made about that extra spend. Now move forward to C7 versus 911. The Corvette has started to get those subjective things right, the interior is much nicer, quality is up. The 911 meanwhile has moved up market and it can no longer compete with Corvette through most of its range in generated performance numbers versus price since on the bottom end it's already in Z06 territory. It's interior no longer feels like a much nicer place to spend time. It's better, but not so much. You don't drive it and think you understand where the extra money is going.

All that is a preface to the thought that I think Porsche is in trouble, they're not going to die but I think their current positioning is doomed to failure. On the bottom end cars are getting much better and people are starting to get it. All the lux OEMs are facing this problem, MT has a 40k Camaro thoroughly trouncing a near 80k M4 for example and you nowadays you see this sort of thing regularly. Right here you have an F-Pace which in many ways is preferable to me over the Macan without considering price. Throw in the eye watering 40k difference between a loaded Pace and a loaded Macan and it isn't easy for me to come up with any formula which leads toward a Macan purchase. Porsche cant move much further up market with their lineup but they're getting sand kicked in their faces by cars which are selling for half as much and those cars are no longer penalty boxes that can generate a few numbers. That isn't an easy business model to maintain no matter how much brand loyalty you have in you favor.
 
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