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Porsche Now Makes $17,250 in Profit per Car

If Porsche really wanted to, it could buy a brand new Jetta with the profit it makes every time it sells a car. That’s because the Stuttgart automaker makes an average of more than $17,000 per car.

The prodigious sum is up nearly 10% from last year, and is very good news for both Porsche and its parent company Volkswagen that, in case you hadn’t heard, has good reason to take an interested in high yields.

Even among German luxury manufacturers, Porsche’s profit margin is high. Brands like Mercedes and BMW both sell lower-priced entry models that make less profit, but sell in higher numbers. Daimler AG and BMW AG, then, both make about $5,000 per car.

Porsche’s profits are also helped along by optional extras. While the Macan starts at a sober $47,500, 21-inch wheels add $5,400, espresso colored seats add another $4,900, and a custom exterior color adds $6,500. Five grand here, five grand there, it adds up faster than you’d think.

Not selling cheap cars also helps. Unlike BMW and Mercedes, Porsche sells fewer cars at a higher price. Ferrari, which sells even fewer, even higher priced cars makes about $90,000 a car, though that margin is partly attributable to its affinity for selling scale models and carbon fiber chess sets.

While Ferrari only sells 8,000 cars a year, though, Porsche sold twice as many in February of 2017 alone. And that’s something Porsche has been working on. In the past three years annual output has increased by almost 50%.

With profits rising alongside sales, the news is all good for the Suttgarters and their quest to assemble the world’s largest collection of Jettas.

[source: Automotive News]

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