Photo: Porsche
Back in the olden days, some automakers designed and built cars just for the hell of it. But these days, turning a profit is more important than nursing a designer’s passion. It’s no wonder, then, that bean counters are held in high regard for their know-how.
Quantification, especially when it comes to the exclusion of other matters, is the name of the game in the automotive industry of the 21st century. Even the big boys such as Porsche and Ferrari do it, and yes, they do it because the ultimate purpose is to be lucrative.
Bloomberg published a story on how automakers profited in 2016, and expectedly, Ferrari makes a lot of money on each and every vehicle it sells. As per the cited publication, the estimate works out at $90,000 per automobile, which is a lot considering that’s the price of a nicely-equipped Mercedes-Benz S-Class. More surprisingly, the Prancing Horse generates 30 percent of its profit “from engines, key chains, amusement parks, and other things that don’t have wheels.”
Over at Porsche, operating profit per vehicle is a bit more sensible. With more than 238,000 automobiles delivered in 2016, and a total operation profit of €3.9 billion, Bloomberg is adamant that Porsche nets $17,250 for every unit. Mercedes-Benz and BMW are not as lucky, though, with each getting roughly $5,000 per every car sold.
That’s all jolly and nice, but the truth of the matter is, profit margin goes up the more someone equips his or her car with options. It’s no wonder you can get eucalyptus wood in the F-150 pickup or a crate full of tools for the upcoming Challenger SRT Demon. On a tangent, it should be noted that a lot of outfits have identified this opportunity, and explore it by introducing customization programs.
Opel, which was only recently acquired by Groupe PSA, has just presented the Exclusive treatment for the Insignia. It’s a program mostly focused on colors for both the outside and the inside, but in bean counter talk, that’s good business for the ailing manufacturer.
Bloomberg published a story on how automakers profited in 2016, and expectedly, Ferrari makes a lot of money on each and every vehicle it sells. As per the cited publication, the estimate works out at $90,000 per automobile, which is a lot considering that’s the price of a nicely-equipped Mercedes-Benz S-Class. More surprisingly, the Prancing Horse generates 30 percent of its profit “from engines, key chains, amusement parks, and other things that don’t have wheels.”
Over at Porsche, operating profit per vehicle is a bit more sensible. With more than 238,000 automobiles delivered in 2016, and a total operation profit of €3.9 billion, Bloomberg is adamant that Porsche nets $17,250 for every unit. Mercedes-Benz and BMW are not as lucky, though, with each getting roughly $5,000 per every car sold.
That’s all jolly and nice, but the truth of the matter is, profit margin goes up the more someone equips his or her car with options. It’s no wonder you can get eucalyptus wood in the F-150 pickup or a crate full of tools for the upcoming Challenger SRT Demon. On a tangent, it should be noted that a lot of outfits have identified this opportunity, and explore it by introducing customization programs.
Opel, which was only recently acquired by Groupe PSA, has just presented the Exclusive treatment for the Insignia. It’s a program mostly focused on colors for both the outside and the inside, but in bean counter talk, that’s good business for the ailing manufacturer.
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