How much profit does Ferrari make on each sports car?

IRL/GB

How much profit does Ferrari make on each sports car?

A fascinating new study has been released by Dr Ferdinand Dudenhoffer, who is a director with CAR-Center Automotive Research based in Duisburg, Germany.

 

He conducted research into how much actual profit Ferrari made on each of its sports cars and it's an interesting comparison with other luxury car manufacturers.

 

The luxury Italian sports car manufacturer was founded by Enzo Ferrari in 1939 and they have become world famous and synonymous with luxury, speed and wealth.

 

Ferrari makes an average profit of about €70,000 ($80,000) per car sold, according to this latest German study by Dudenhoffer.

 

That profit margin alone is as much as it would be to buy a whole other luxury car such as a Mercedes-Benz C-Class €63,500 ($73,500) or Tesla Model X €68,700 ($79,500).

 

Ferraris can cost anywhere from €175,000 ($200,000) to well over €260,000 ($300,000) per car and much, much more for classic models sold at auction or limited edition cars).

 

The calculations were determined by taking the annual revenue and EBIT (earnings before interest and tax) for the first half-year reports of 2018 and dividing it by the number of sold cars, which brings you to the average price of a car or average EBIT profit per car.

 

When comparing, say, the average Porsche, whose cars sell for about €43,000 ($50,000) to €130,000 ($150,000) making an estimated €15,000 profit for every car, this is a huge difference. It is estimated that BMW, Audi and Mercedes each make about $10,500 average per car, according to Motor Authority.

 

Last year, Ferrari sold about 8,400 cars. Currently, the supercar company has a market cap of about $22.6 billion. They shipped 8,398 cars in 2017 and 8,014 cars in 2016 (a 5 percent increase); the low supply helps keep the car prices high.

 

In comparison to this, (Porsche delivered 246,000 vehicles last year, for example, which is a 4 percent increase from 2016.) Ferrari's net profit was $178 million for first quarter this year, a 19 percent increase.

 

Ferrari debuted their brand-new Portofino model back in February. The V8 GT convertible sports car is the replacement for Ferrari's California T model, and it sells for $215,000. In April, Marchionne said that Ferrari is testing a new electric car. The petrol-battery hybrid engine will power the company's first-ever SUV.

IRL/GB