How can this be you ask. Quite simply, shrewd management and excellent investments. More specifically, Porsche’s 30 plus percent stake in VW accounts for more than 90% of the expected 11 billion Euro in profit (that’s $17 billion dollars at today’s conversion rate.) Revenue is expected to come in around 8.6 billion euros. For anyone that is mathematically challenged let me do the math for you: 11 billion in profit on 8.6 billion in revenue means ONE HUGE BONUS for Porsche’s management team!!!
Oh, and before I forget, Porsche would still report just shy of 10% profit or 1.2 billion euros without the VW numbers. That’s not too shabby on its own.
Wiedeking’s Payday Proportionate to Porsche’s Profit
It was reported last year that Porsche boss Wendelin Wiedeking took home almost 60 million euros for his pay package. If the numbers above are correct, some are speculating he could earn as much as 100 million euros this year. Well deserved if you ask me.
I follow a lot of internet forums with regard to Porsche. On each of these forums, any move made by the Porsche management team is scrutinized, dissected and arm-chair quarter-backed to death. It’s like each one of us (yes, I too am guilty) is smarter than the Porsche management team collectively. If these numbers are right, them my hat is off to Wiedeking and the rest of his group. No more second guessing. If anything, I’ll be working on a shrine to worship their good fortune (and yours too if you happen to be a shareholder.)
[Source: Der Spiegel, Dow Jones Newswire]
View Comments (6)
You would think that Porsche would give people that own their "flagship" car some type of break to keep them running. Instead they have their dealers ship back to Germany small (and some large) parts so they can charge large $$ to reship them and give us a three to six week delivery lead time.
Profit is required, but lets get real, it may not last if owners are treated poorly. I have heard the story, that owners of Porsches have big bucks, and don't care, but some drive for the enjoyment and not the status and do care.
@Bob,
I've never heard of this practice of shipping parts back to Germany. Where does your information come from? I would like to investigate.
As for owners being treated poorly, Porsche is consistently winning awards for customer satisfaction and quality. It is possible a few bad experiences have biased your opinion?
I'm with you, I drive for enjoyment, not for status.
it all comes down to "creative accounting" or working in a real way to create real profits
Contrast this to the us where you would think that their product is to provide health care benefits and retirement packages to experienced productive workers while management takes big bonuses while the auto companies nosedive
Real profitability takes eons of planning and efforts
Its not creative accounting - just sound business practices paying off
I too drive for pleasure and the love of Porsche, and I must say I've had nothing but a positive experience with their Customer Service. True, their parts are expensive and sometimes take a little bit to arrive. But in terms of supporting their product Porsche is an exceptional company.
I'm not too crazy about W's bonus size, but that's a matter of principle for me--he is a marvelous manager, after all, and arguably the sole reason why Porsche was able to emerge from their slump a decade ago.
@Everyone
Yeah, you all drive Porsches for the pleasure and not for the status. Sure.
There's also only one reason someone would buy a $5,000 watch...durability, right?
You guys crack me up.
BigBadHuey
Take it easy Huey, only two persons commented about their enjoyment of driving a Porsche vs. the status quotient. Yes, I'm certain many/most current buyers are enamored with the status of Porsche-designed car, but there's a who legend of Porsche fans who enjoy this "underpowered" (compared to other makes) car for its design, driving and engineering prowess. Fuck the status, attention seekers and investment types. If status comes with the main objectives of ownership, so much the better. And I'm speaking about older 911s btw.