Sales

Porsche Is Winning Because The 911 Is NOT Its Best-Selling Model

Don't worry. We'll explain.

There’s no question the 911 is the very definition of Porsche. It is an industry and sports car icon and it’s vital to the brand’s future – as a symbol. It’s not as vital, however, as SUV sales. Point being, the Macan and Cayenne generate much higher profits, especially in North America. Porsche has just announced that it had an operating profit of 2.4 billion Euros in 2014. That’s a new company record, but it’s still a lower per-unit figure than in 2013. Before interest and taxes, Porsche earned roughly 14,220 Euros per vehicle, or around $18,900.

Believe it or not, that’s a 16.4 decrease compared to 2012, but that’s not a bad thing. AutoGuide explored this further and reached out to an IHS Automotive analyst to break it all down. At the moment, Porsche sells 21 variations of the 911 and a total of 51 derivative models based on seven nameplates. Porsche sold more Cayennes last year than 911s and Panameras combined, and the Macan became its second best-selling model. The analyst explained that "Even if the Macan brings in less profit per vehicle than the 911, Porsche will sell at least twice as many Macans as 911s next year and possibly generate more profit on the Macan than the 911, due to the higher volume.

The company is generating far more revenue - profitably - than with a smaller product lineup." What Porsche needs to avoid is to grow too much too soon, diluting the brand image. This is why Porsche analyzes the hell out of every new potential model before it gives it the production green light. That entry-level model slotted below the Boxster obviously didn't pass the test.

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