There is perhaps no other car in the history of automotive that has managed to create a legacy for itself as the Porsche 911 has. Currently, in its 8th generation, the latest version of the 911, which was launched late in 2018 at the Los Angeles Auto Show, is known as the Porsche 992 by fans and enthusiasts faithful to the brand. Not only is this version of the Porsche 911 a beast in its own right, it is also a beaut, adored by both industry experts and consumers of automotives. And to give further credibility to this fact, a recent report released by Bloomberg Intelligence declared the Porsche 911 (or rather the 992 version to be specific) to be the most profitable car of the year.
The Porsche 911 was able to beat other heavyweight models for the title, such as the Ferrari F8 Tributo, the Aston Martin DBX, the Mercedes-Benz GLE, and the BMW X5, all of whom have an extremely profitable track record as well. The 992 model accounted for almost 30 percent of the total earnings of the Porsche AG brand, even though it made up only 11 percent of the total in terms of sales, given its considerably high margins.
Now, while the margins on the Porsche 992 are already pretty high, with the base variants being tagged at a whopping US $97,400 (a few thousand dollars higher than the previous version), it is the variations available on the 992 that send the margins through the roof. According to Michael Dean, who is the automotive equity research analyst for Bloomberg Intelligence, it is the addition of the Turbo variants that do the trick for the 992, and could account for almost half a billion dollars in profit for the company. At a point of time when economies are in a slump, with sales of automotives witnessing a fall across the world, Porsche was still able to clock a 3 percent rise in sales, with just the 911 brand selling 35,573 of the total 256,255 Porsche vehicles being sold globally, registering a massive 10 percent increase in sales.
Fortunately enough for the brand, this news has come in at the time when Porsche is undergoing a transition to all-electric vehicles, as can be seen with the recent launch of the Porsche Taycan, of which the company is planning to push out about 20 to 30 thousand units from its new factory in Stuttgart, Germany, in the near future. Given that the Taycan is expected to be its least profitable model, at least till the year 2023, by when battery prices will have declined considerably, Porsche aggressively pushing for the sales of the Turbo versions of the 992 in order to recover the mammoth US $6.6 billion investment that the company has made in the Taycan seems to be a prudent strategy. And as the Turbo versions are increasingly rolled out throughout the year, the earnings of the company are only expected to rise further in the next year and a half by not less than 50 percent, even by conservative calculations. It does seem like it’s time for the Porsche 911 to celebrate with a victory lap, doesn’t it?