![Gran Turismo 5 demo coming to PSN on Dec 17, GT Academy returns [w/VIDEO]](http://www.blogcdn.com/www.autoblog.com/media/2009/12/370z-gt-academy_143x85.jpg)
Porsche earns big profits despite falling production and sales
We don't know if Porsche is that damn shrewd, extremely lucky, or both, but the people running the sports car maker from Stuttgart sure seem to know what they're doing. During the first half of Porsche's fiscal year that ended on January 31st, the company's production numbers were down, sales declined, and yet profit skyrocketed from $222 million during the same period last year to $1.5 billion this year. Much of the windfall is attributed to Porsche's 27.3% ownership stake in Volkswagen, which in a year and a half has doubled VW stock while increasing Porsche's own worth by 50%. And the only reason sales numbers were down by 7% was the model changeover of the Cayenne SUV. 911 and Boxter saw gains of 15.7% and 19.6% in the half-year period.
Porsche is now confident it will beat its full-year 2006 profit of $2.76 billion this year, which would be a great year for a company 20 times its size.
[Source: Detroit Free Press]
Reader Comments (Page 1 of 1)
chewy 5:57PM (3/06/2007)
Porsche making BIG money of VW stock. This is how some "idiot" was able to calculate that Porsche made 30,000 or so profit per vehicle. No, Porsche just built few vehicles but made tons of money from VW stock doubling.
Reply
macgnome 6:46PM (3/06/2007)
PORSCHE ROCKS>>>>>>trade in your tired and weary bmw for a real GERMAN sports car......
Reply
mike 12:27AM (3/07/2007)
Porsche has been upfront, they don't need to be the largest auto-maker in the world to make big money.
They want to keep the Porsche a high-end product and don't want to saturate the market
Smart company, and awesome products
Reply
Ted 7:56PM (3/06/2007)
Wow, even with all their other models posting double digit sales increases, the model changeover for the Cayenne, cost Porsche 7% in sales.
They really do sell a lot of those hideous monstrosities.
Please, stupid people of the world, continue to buy Cayennes at an alarming rate. We'd like you to keep subsidizing our favorite sports car maker.
Sincerely,
People who like REAL Porsches.
Reply
Bill 9:26PM (3/06/2007)
They aren't lucky, they are shrewd Germans who know how to fleece Americans who dolt over their overpriced junk and pay way more than it is worth. JT Barnum was right about suckers...especially Americans with more $$ than brains.
Reply
robotrock 9:18PM (3/06/2007)
boxSter has an "s" in it
Reply
Undercover Soul Brother 11:35AM (3/07/2007)
*Boxster
Reply
Rodion 9:47PM (3/06/2007)
Well Bill why don't you tell us what you think it's worth? Are you a marketing expert of some sort? And of course Americans are the ONLY ones that buy Porsches. Naaah forget Asia, South America, Europe, Eastern Europe, Australia, or even our neighbors.
So judging by your logic then everyone who buys Porsche is an idiot with money. And sure let's omit the fact that Porsche is the ONLY sports car out there which is practical daily driver which won't shatter your bones like a Z06 or a Viper. Or its bulletproof quality. Or its near perfect feedback through steering wheel.
Thank you America for producing characters like Bill who does such a great job of looking at the whole world, its demographics, socio-economic status, good knowledge of automotive industry.
Reply
jscro 11:00PM (3/06/2007)
"JT Barnum was right about suckers...especially Americans with more $$ than brains."
Yeah, one of the most iconic, best performing sports cars the world has ever known. What kind of sucker would buy such a thing! Buy a Monte Carlo, or an Aztek; those are real cars.
Reply
drolds1 2:28AM (3/07/2007)
Is JT Barnum related to PT Barnum?
If you're going make what you think are pithy quotes, at least get the source right. Besides, P.T. Barnum never said it.
Reply
wushu 3:29AM (3/07/2007)
Porsche should try to grow revenues by making their new Cayman product line even better with a TT and GT3 version of the Cayman.
Reply
Dandy 8:36AM (3/07/2007)
Completely agree with #8. I admire their engineering, design, performance, refinement and usability. Great cars, and they're unapologetically selling them for a premium.
Who's complaining about he maybachs and rolls royces of the industry where you could put a lazyboy in a shaggin wagon for $300k less?
Reply
Avinash machado 8:44AM (3/07/2007)
#9 is right. PT Barnum nver really said that. It is actually just an Urban Legend.
Reply
hitbyastick 1:02PM (3/07/2007)
Porsche 911 Carrera S is without a doubt the very best car made in the world. I have wanted one since I was old enough to see. Lamborghinis come and go, Ferraris, Corvettes; 911 is my obsession. Buy one, then five years later sell it for a couple thou less than you paid for it. They are as depreciation-proof as it gets in this sh*tty world.
Reply
macgnome 3:41PM (3/07/2007)
Bill probably drives a lamo Corvetta! or he probably spent 100k on one of those euro fake Cadillac things. YEah ur a smart guy!
Reply