Did you pay too much for your new Porsche? The answer, for anyone with a shiny new German sports car in their driveway, is yes.
Long touted as one of the most profitable brands in the world, Porsche is the easy front-runner when it comes to generating a profit margin for parent company Volkswagen.
In a new annual report released by the German automaker it revealed that for each Porsche model sold the company makes $23,200 in profit. That amounts to a profit margin of 18 percent on each and every car.
That’s 27 times the profit Volkswagen makes off each VW-branded car, at $850 or roughly 2.9 percent margin.
Sitting somewhere in-between is Audi (which includes Lamborghini sales) with $5,200 in profit per car, or a 10 percent margin.
According to a new report by Bloomberg, VW’s premium brands help carry the corporate load last year, with reduced demand for more affordable models. With plans to launch as many as 100 new or refreshed models globally in 2014, R&D costs climbed 23 percent last year, eating into revenues.
Despite the profit-heavy premium brands Volkswagen is committed to volume models and has set its sites on unseating Toyota as the world’s largest automaker.
GALLERY: Porsche Macan