archyworldys

Why are the Porsches costing more expensive than the prices that are published?

A new Porsche can cost up to $300,000. Sure, a Porsche buyer doesn’t seem to care much.

Porsche dealers have very small inventories due to low supply and high demand. Some even charge well above the manufacturer’s suggested retail price.

Porsche going public soon

Porsche is expected to have a market capitalization of $75 billion when its initial public offering goes live. The figure is extraordinary, given that Porsche is far from being the world’s largest car company based on unit sales.

Porsche’s revenues are about $8 billion and its profits are just under $1.5 billion. That profit margin is close to unprecedented.

The Volkswagen Group, the parent of Porsche, has already lined up buyers for the shares of various sovereign wealth funds and institutional investors. This means that the $75 billion dollars is almost assured.

The initial public offering shows the extent to which the brand can be valued well above unit sales

Ford and General Motors have valuations in the $60 billion dollar range.

Sure, Porsche is truly a niche manufacturer and sells a fraction of its volume compared to Detroit peers.

Porsche is yet another reminder of why Tesla’s market capitalization is close to $1 trillion. The brand counts. The same goes for a moat that prevents other auto companies from competing.

Porsche builds some of the fastest cars in the world. And the components and workmanship cannot be matched by other brands, with the exception of Rolls Royce and a few other ultra sports car manufacturers.

Porsche was founded in 1931 by a single inventor, Ferdinand Porsche. To him belong most of the first models and the basis of the current ones.

Read also  Rugby. Vintage panini album, Bastarockstar... Masked Oval strips Toulon-Clermont

Porsche is an example of how much brands matter. Regardless of what happens to the car market around the world, their sales will never come close to those of such famous luxury car companies as BMW, Mercedes and Audi.

Investors, of course, don’t care.

Trending