Porsche 911 is a cash cow for the German car company. Here’s why that’s a problem

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Too reliant on a car that is 60 years old, the German manufacturer needs to build up the popularity of other models.

is the German manufacturer’s most recognisable and expensive model. Fortunately, it’s also the one whose sales are growing the fastest, and that’s helping Porsche cope with a cornucopia of challenges that have made it appear like the poor relation toThough it’s nice to have such a cash cow, Porsche needs to show other models can deliver similar success.

The 911 costs at least €122,500 including German sales tax and can reach as much as €292,200 for the special edition 911 S/T – and all 1963 units of the latter quickly sold out. Don’t forget these prices are before adding customised features, which more than 90 per cent of 911 customers opt for.The upshot is that the car is providing a bucket load of profit.

The anticipated operating profit margin of 15 per cent to 17 per cent isn’t bad by car industry standards. But it’s below the 18 per cent achieved last year and miles off the roughly 27 per cent margin Ferrari has forecast this year.

 

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