Porsche Earned $19,000 Per Car in 2014

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• Porsche Earned $19,000 Per Car in 2014
• Porsche Confirms Seventh Model by 2020
• Mitsubishi Halts Sedan Development to Focus on SUVs, EVs
• 2016 Nissan GT-R Priced at $103,365
• BMW Contemplating Next i-Branded Product
• No Porsche Macan Rival for Maserati

Porsche Earned $19,000 Per Car in 2014 Posted: Share this Article Porsche AG recorded almost $19,000 in operating profit for every vehicle it sold in 2014. The company announced last week that it recorded an operating profit of 2.7 billion euros in 2014, marking a new record for the company but a lower per-unit figure than the previous year. On average before interest and taxes, the company earned about 14,220 euros per vehicle, or almost $18,900 based on the average exchange rate between the euro and greenback in 2014. That represents a 16.4 percent decrease in average profit per unit compared to 2012 when a global survey by the CAR Center at Duisburg-Essen University said that Porsche AG was the most profitable automaker in the world. But IHS Automotive analyst Stephanie Brinley says that isn't an indication of anything negative at the company. Quite the opposite. To date, the company sells seven models in the U.S. where it did 24.7 percent of its business in 2014. Currently the company sells 21 different variations of the 911 sports car or a total of 51 derivative models based on those seven nameplates. Utility Vehicles Key to Increased Revenue "In 2014, Porsche sold more Cayenne SUVs than 911s and Panameras combined, and the Macan (pictured) became its second-best-selling vehicle," she said. "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." 918 Spyder Sold Out Last Year Aside from the Macan compact crossover, which starts at $53,595 but can climb above $100,000 in its more potent "Turbo" guise, the company was also selling its 918 Spyder halo car in 2014. The order book for that car closed late last year after Porsche found customers for each of its planned 918 units. "Whether the car was profitable, I can't say. However, given future emissions and fuel economy requirements, Porsche needs to understand and be able to execute on alternative powertrains in a way that is true to the brand DNA and what customers expect," Brinley said. "Making money on the 918 was less important than the statement it made regarding the potential for hybrid technology to be at the heart of fantastic performance, and what the company learned about applying hybrid technology." Porsche and other brands with similar levels of exclusivity need to be mindful of the possibility that rapid expansions in volume can potentially dilute their brand image. Risks of Rapid Growth "It is possible to grow too much, too fast and dilute the brand and cut corners on product development," Brinley said. "So far, Porsche seems to have avoided that trap. While expansion to at least one more product line seems imminent, the company has been cautious on adding new product lines." During the company's annual investor meeting, CEO Matthias Müller spoke of "promising plans" for a seventh model by 2020. Rumors of Porsche developing a rival to the Tesla Model S have been circulating for months, but R&D boss Wolfgang Hatz denied reports that the company is working on such a product. Porsche reserved the name "718" with the U.S. Patent and Trademark Office last February. So far, there hasn't been any official indication from the company about plans to use that nameplate specifically on an upcoming car. "For mass market products, volume is where the profits come in, as higher volume can drive down cost," said Brinley. "Adding variants to the Porsche business comes at the cost of somewhat lower brand exclusivity and increased engineering costs. Expanding the range, however, is a strong lever for increasing volume for the brand overall — and, in the case of SUVs — required to keep up with consumer demand and remain industry relevant." Most recently Porsche unveiled its new 911 GT3 RS during the Geneva Motor Show alongside the new Cayman GT4, two especially performance focused and exclusive models. Loading, please wait...

Porsche Confirms Seventh Model by 2020 Posted: Share this Article Porsche will be adding a seventh model to its lineup by 2020. Speaking at the Volkswagen Group's annual investor meeting, the German automaker's CEO Matthias Müller confirmed a seventh model is in the works and he had "promising plans" to introduce it by 2020. The CEO also made a reference to American electric automaker Tesla, saying that Tesla has "a very pragmatic approach and set the standard, where we have to follow up now." It might not be a cut and dry confirmation that an electric vehicle is in the works, but it's clear what Müller's intentions are. SEE ALSO: Porsche Pajun to be Dedicated Electric Car: Report Rumor has it that Porsche is planning to add an all-electric vehicle to its lineup and it's expected to be the Panamera Junior, or Pajun. And considering that it's part of the Volkswagen Group and both VW and Audi have both been working on hydrogen fuel-cell vehicles, don't be surprised if Porsche is considering one as well. As for the seventh model, it is likely to be a luxury GT model targeting the Ferrari 488GTB and a more hardcore Lamborghini Huracan model that has been rumored. It'll feature a mid- or rear-mounted flat-eight engine and will be slotted above the 911 Turbo S. Expect that model to debut in 2017 and it'll boast all-wheel drive along with over 600 hp. [Source: Car and Driver] Discuss this story at our luxury lifestyle forum Loading, please wait...

Mitsubishi Halts Sedan Development to Focus on SUVs, EVs Posted: Share this Article Mitsubishi's already long-in-the-tooth Lancer small car is not scheduled to be replaced anytime soon. This revelation comes from the company's COO, Tetsuro Aikawa. The current model will soldier on, likely without any significant enhancements. Why has Mitsubishi decided to not compete in such an important segment of the market? Well, according to Aikawa there are two reasons. SEE ALSO: 2014 Mitsubishi Outlander Sport Review First, the triple-diamond brand is focusing its efforts and resources on SUVs, hybrids and electric vehicles. Fair enough, but the second excuse is a bit more telling. Sedan segments are some of the most cut-throat in the automotive business and for Mitsubishi to play in these fields – and do so profitably – is a difficult proposition. This automaker has been struggling for many years, especially in North American. A drought of products that compete in popular segments will do it no favors. Discuss this story on our Mitsubishi Forum. Loading, please wait...

2016 Nissan GT-R Priced at $103,365 Posted: Share this Article Pricing on the Nissan GT-R will remain unchanged for the 2016 model year. After numerous price increases over the recent years, the Japanese automaker has announced that the 2016 model will remain unchanged. That means the 2016 Nissan GT-R Premium will start from $103,365 including destination while the Black Edition is priced at $113,105. The range-topping GT-R NISMO carries a $151,585 retail price as it enters its second year of availability. SEE ALSO: By the Numbers: How the Nissan GT-R Has Changed The GT-R Premium and Black Edition models benefits from five additional horsepower (550 hp) for the 2016 model year while the Premium model also receives new 20-inch wheels. The company is also celebrating the GT-R's history of world-class high performance with a 45th Anniversary Gold Edition that is built off the GT-R Premium model. Finished in a special gold paint color, the limited edition model also receives a gold-tone VIN plate in the engine compartment and a special commemorative plaque on the interior center console. Less than 30 of these GT-Rs are slated for the U.S. Discuss this story at our Nissan forum Loading, please wait...

BMW Contemplating Next i-Branded Product Posted: Share this Article BMW's i sub-brand currently has two models, but the German automaker is contemplating what's to come for this eco friendly division. The next i-vehicle would most likely debut after 2020, though it's still a mystery what it could be. Rumors indicate the brand could get a special version of the X5 crossover, but according to BMW research and development chief Klaus Frölich that's not appropriate. He said this division's mission is to change the perception of eco-friendly vehicles and that doing this isn't right. Accordingly there are no plans to re-package an existing BMW model as an i. SEE ALSO: 2014 BMW i3 Review There's a lot of time before the company plans to introduce a new i car; 2020 is still half a decade away. Going forward the i3 and i8 models will have to stand on their own until they're eventually joined by a new product. Continual battery improvements will help any future i cars. Frölich said energy density improves by at least 20 percent every three years. This is something that could be valuable for mainline BMW models. The i sub-brand is designed to pioneer new technologies, things that eventually trickle down to mainstream vehicles. [Source: Automotive News] Discuss this story on our BMW Forum. Loading, please wait...

No Porsche Macan Rival for Maserati Posted: Share this Article Porsche's Macan is one of the latest premium luxury crossovers to hit the market. It's a driver's vehicle and one that's probably spurred rival automakers to start developing similar models, but not Maserati. Trident-brand honcho Harald Wester officially ruled out such a vehicle. However, they are working a crossover to challenge the Porsche Cayenne. This larger vehicle will be called the Levante and is expected to launch at the 2016 Detroit auto show. SEE ALSO: 2015 Porsche Macan S Review Wester's logic is that he doesn't want to compete with other Fiat Brands, chiefly Jeep. He said that in the automotive business you should never categorically say "no" but his opinion is that something smaller than the Levante is not in necessary. This new crossover should help grow Maserati sales. The brand's goal is to reach 75,000 deliveries per year by 2018. Discuss this story on our Luxury-Lifestyle Forum. [Source: Autocar] Loading, please wait...

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