The Porsche Taycan won’t be profitable until 2023

Porsche Taycan won't be profitable until 2023

The Taycan is arguably one of the most important model launches in Porsche’s history. It’s also one of the marque’s most expensive investments. It has pumped more than £5.3billion into the project, including the construction of the factory.

It might surprise you to discover, then, that Porsche doesn’t expect the Taycan to turn a profit until 2023.

This is nothing Porsche wasn’t prepared for – the primary expense is battery production. The marque anticipates that over the coming years, battery costs will take a significant tumble. Speaking with Bloomberg, Porsche CEO Oliver Blume said he expected the Taycan to make a “good margin” eventually. 

This is part of the reason why Porsche has launched with the expensive Taycan Turbo and Turbo S models. The truth is they’re not that much more expensive to build than lower-end models. 

Porsche Taycan won't be profitable until 2023

This is also why Tesla launches it’s highest performing and most expensive variants first. That’s why we’re still waiting for the most affordable Model 3, three years after the standard car’s reveal.

Consider also the high volume of fully-electric hypercars that have been revealed of late. A seven-figure list price can absorb the cost of batteries and motors, however high-performance they may be. In turn, you introduce electric power to the zeitgeist while advancing battery and e motor development. It’s a win-win. Going a bit further down the affordability tree for the Taycan is a bit of a brave pill for Porsche.

The Taycan is the head of an electric revolution, though. A loss-leader it may be, but you don’t build an entirely new factory for the sake of producing one expensive car.

Porsche Taycan won't be profitable until 2023

Porsche has been very open about wanting the next-generation Macan to have an all-electric variant. Likewise, an all-electric 911 can’t be more than ten years away. Porsche is one in an automotive group, too. Technical partners are never far away, which in the case of this electric endeavour, it has found in Audi.

The coming E-Tron GT super saloon will borrow some hard-won and expensive Taycan knowhow. The Taycan treads new ground for Porsche, and treading new ground tends to be expensive. But many more models and variants to come will follow in those footsteps.

In terms of production numbers, the Taycan isn’t expected to outstrip the 911, of which around 35,000 are built every year. As we and Bloomberg have previously reported, the 911 is the most profitable car in the world in terms of numbers made versus profit margins.

The Porsche 911 is the most profitable car in the world

Porsche 911 most profitable car

The most profitable car of 2019 cars been revealed. No, it’s not some unobtainable hypercar with £10,000 carbon fibre cupholders or a million-unit-selling SUV. It’s the Porsche 911 – a car now famous for the fact that it’s one of Porsche’s lowest-selling models.

The 911 makes up just 11 percent of sales, but around 30 percent of Porsche’s earnings. Porsche makes a 47 percent margin on the model, as it brings in over €2billion (£1.8billion) per year for the marque. The only other car that beats it on profit margins is the Ferrari F8 Tributo, which has a 50 percent profit margin. 

However, the F8 Tributo makes up a mere 17 percent of Ferrari’s new vehicle contribution. That’s likely due to annual volumes. A total of 4,000 sales of the F8 Tributo looks insignificant, compared with the 38,000+ 911s that are built in a year. Sales of the 911 in 2018 alone – yes before the 992 – outstripped everything from Aston Martin, Bentley, Ferrari and Lamborghini, combined.

That’s some volume, especially when 47 percent of that take is profit. 

Porsche 911 most profitable car

That’s only on Carrera models, too, which are always the first out of the showroom for a new 911. More expensive variants such as the Turbo and GT3 are predicted to come with still-higher margins.

Michael Dean is the automotive equity research analyst for Bloomberg Intelligence, the publisher of these figures. He called the earnings on these high-margin cars “disproportionately high”.

“It’s a very simple calculation: the 911 is very profitable in its own form, and when you add the variations, the margins became immense,” Dean said.

“If you assume they sell 10,000 Turbos anyway, plus GT3 and Turbo S, just the Turbo variants of the 911 alone could actually mean half a billion dollars in terms of profit for Porsche.”

Porsche 911 most profitable car

Porsche spoke of how pleased it is with the strong performance of the 911 in a company sales report.

“The 911 capacity to fascinate is stronger than ever,” said Porsche executive board member Detlev von Platen. 

“We just celebrated the world premiere of the new 911 at the end of the year at the Los Angeles auto show, and yet our sports car icon once again inspired more customers in 2018 than in the previous year.”

Porsche Taycan EV makes gaming debut in Gran Turismo Sport

Porsche Taycan Gran Turismo Sport

The Porsche Taycan has just been revealed at this year’s Frankfurt Motor Show – but before anyone drives it, you could get behind the wheel digitally. Porsche’s first electric car is coming to Gran Turismo Sport, as part of an extended partnership. 

The Taycan Turbo S will star in the latest Gran Turismo game, along with the 917 Living Legend design study. The Taycan will appear with a free content update next month (October 2019). 

Porsche Taycan Gran Turismo Sport

The 917 will take a little longer. It’s due to appear in-game within the first half of next year. Porsche is also currently working on a ‘Vision Gran Turismo’ digital concept car. That will appear in the game by the end of next year.

“Motorsport is part of our DNA and racing games offer great opportunities to drive a Porsche yourself on the racetrack,” said Kjell Gruner, vice president of marketing at Porsche. 

Porsche Gran Turismo Sport

“The multi-award-winning Gran Turismo franchise is the perfect partner for offering our fans the opportunity of having a Porsche experience in racing games.”

Porsche and game developer Polyphony have been working closely on recreating the Taycan for Gran Turismo so soon after release. It’s taken nine months, with even the Porsche ‘Electric Sport Sound’ simulated for the game.

Porsche Taycan Gran Turismo Sport

“By integrating the Taycan Turbo S and the 917 Living Legend car in Gran Turismo Sport, and by working on the Porsche Vision Gran Turismo project, we are further strengthening our partnership,” said Kazunori Yamauchi, president of Polyphony Digital.

Cyclist hits 174mph record with help from Porsche

Porsche cyclist speed record

British cyclist Neil Campbell has claimed a new world record, achieving a speed of 174.333mph while in the slipstream of the new Porsche Cayenne Turbo S E-Hybrid.

The record took place at Elvington airfield in Yorkshire, where, a year earlier, Campbell first got a helping hand from a Cayenne to a record European speed record of 149mph.

Since then, aerodynamicists from Harper Adams University in Shropshire have been developing a unique tail extension for the Cayenne within which Neil could ride.

Not just a free ride

Porsche cyclist speed record

If you’re wondering whether a cycling speed record with a tow from a car is a bit of a cop-out, fear not. For the record to count, Neil had to pass through the timing beams under his own steam during his run down the two-mile runway.

It’s not like the 680hp Cayenne wasn’t breaking a sweat either. The Turbo S E-Hybrid is good for a top speed of 183mph, so had just 9mph to go before running out of puff.

“I am thrilled and relieved – it’s an incredible feeling,” said Mr Campbell.

“The Cayenne Turbo S E-Hybrid is incredible, an absolute beast of a car. I can’t believe how powerful it is. The extra hybrid power combined with the new aerodynamic cowl from Harper Adams added up to a winning combination – I just had to pedal like mad to keep up!”

The original attempt

Porsche cyclist speed record

There is, of course, an element of an homage to the original, and perhaps coolest, Porsche-towed bike record attempt in 1977.

Cyclist Jean-Claude Rude wanted to crack 150mph with the assistance of a modified 800hp Porsche 935 racing car.

It was not to be, though, after the bike lost its rear tyre and wheel. Jean-Claude was fine in spite of not achieving his goal. Regardless, the attempt was a fascinating moment in history.

Porsche Taycan is the world’s first car with built-in Apple Music

Porsche Taycan gets build-in Apple Music

The anticipation surrounding the launch of the Porsche Taycan is palpable. What performance will it deliver? How much will it cost? How far will it go? These are all headline questions. As for the more day-to-day stuff, an interesting tidbit to report is that it’ll be the first car to come with Apple Music built-in.

In reality, regardless of the hype and hysteria, this is the kind of thing buyers will actually care about long-term.

Apple Music and Porsche explained

Porsche Taycan gets build-in Apple Music

Think of Apple Music as the tech giant’s response to Spotify. For subscribers, it carries over 50 million songs ad-free, thousands of curated playlists and its own radio station called Beats 1.

In addition, Taycan buyers will also get access to playlists made by Porsche. New and existing Porsche owners can also get up to six months free use of Apple Music. All Taycans will also come with in-car internet for three years, including an external antenna and roaming package.

You can cultivate a quality music listening environment with your Taycan, too. Optional is a Burmeister surround sound system, which can be combined with Apple’s Digital Masters service to listen to music in high quality.

2019 Porsche Taycan electric orders

“Porsche and Apple Music fit perfectly,” said Detlev von Platen, member of the executive board for sales and marketing at Porsche.

“We share common values, and the same relentless attitude to user experience, to quality engineering, to design, to innovation. Together, we bring innovative digital entertainment technologies in our high-performance sports cars, starting with our fully electric Taycan.”

Porsche launches world’s most powerful SUV – and it’s a hybrid

Porsche Cayenne Turbo S E-Hybrid

There’s a new king of the super SUVs. The Lamborghini Urus has been toppled, and its attacker comes from within the Volkswagen Group. Meet the Porsche Cayenne Turbo S E-Hybrid – an SUV with 680hp.

The flagship Cayenne also serves up a monstrous 663lb ft of torque: good for 0-62mph in 3.6 seconds and a (limited) top speed of 183mph.

Supercar speed in an SUV

Porsche Cayenne Turbo S E-Hybrid

Standard equipment on the Turbo S E-Hybrid includes carbon-ceramic brakes, Porsche Dynamic Chassis Control, Porsche Torque Vectoring Plus and, of course, the Sport Chrono package.

Given this rip-snorting SUV is one of the fastest cars Porsche makes, a set of supercar stoppers seems apt. What isn’t standard, however, is rear-axle steering.

Electrifying performancePorsche Cayenne Turbo S E-Hybrid

Less headline-grabbing, but no less interesting, is the fact that the Turbo S E-Hybrid will drive 25 miles at speeds of up to 84mph without using a single drop of petrol. That’s thanks to the plug-in hybrid system, which uses a 14.1kWh battery. This can be fully charged in just under two-and-a-half hours via a 7.2kW AC charger. 

Indeed, while the 4.0-litre twin-turbo V8 engine provides 548hp, the electric motor serves up an extra 135hp for that 680hp total output. A couple of horses are lost in the combination process, apparently.

Three hybrid Cayennes on offer

Porsche Cayenne Turbo S E-Hybrid

The Cayenne also comes with a price tag befitting a supercar. For the honour of Turbo S E-Hybrid ownership, you’ll part with £123,349, and that’s before options. For comparison, the regular Cayenne Turbo is about £23,000 cheaper.

The Turbo S E-Hybrid is just one of three hybrid Cayennes revealed today, with the new Coupe variant also packing the same punch.

The standard Cayenne E-Hybrid Coupe brings up the rear, with a relatively modest 455hp from its 3.0-litre turbocharged V6 in combination with an electric motor.

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Game, Set and Match: tennis stars and supercars

Wimbledon 2019 Tennis and Cars

Ah, Wimbledon: two weeks of dodging the showers, eating seriously expensive strawberries and cream, Sue Barker making smalltalk when the covers on and the entire nation pinning its hopes on one Scottish British tennis player.

But enough of all that – show us the cars…

Jaguar Ace Pace

Wimbledon 2019 Tennis and Cars

In readiness for Wimbledon 2019, Jaguar developed a new app for your phone that lets you measure how fast your tennis serve is. Winners get prizes, including the opportunity to compete at Wimbledon for real, along with tickets for matches. The Ace Pace app uses accelerometers, which means you have to swing your phone like a racket. That’d be an interesting call to your insurance company…

Andy Murray ‘goes electric’

Wimbledon 2019 Tennis and Cars

In June 2018, Andy Murray delivered on his promise to ‘go electric’ by taking delivery of a Jaguar I-Pace. It no doubt serves to keep the tennis star’s conscience clear, and Jaguar’s PR team happy.

Jaguar XF Sportbrake

Wimbledon 2019 Tennis and Cars

There’s no need to adjust your set, this Jaguar XF Sportbrake is indeed covered in a tennis ball camo wrap. It was part of a campaign culminating in the estate being unveiled by Andy Murray, before being sent on a nationwide tour with the Wimbledon trophy inside. “Letting go of the trophy will be difficult, but there’s no better vehicle than the Jaguar XF Sportbrake to take it on this UK tour,” said Murray (via the Jaguar press office).

Murray makes a mint

For 2016, Jaguar UK signed up Andy Murray as a brand ambassador to promote its #FeelWimbledon campaign, which involves a 360-degree virtual reality tour of Centre Court through the eyes of the British number one. Jaguar is also keen to point out that Murray owned an F-Type Coupe and had a new F-Pace  on order.

Andy Murray smashes Jaguar F-Type SVR

Keen to maximise the return on its investment, Jaguar sent Andy Murray to Thruxton and asked him to serve at a target mounted to the back of a Jaguar F-Type SVR (here, he’s getting his eye in with an XE). The Jaguar just happened to be driven by John McEnroe and Murray served an ace as the car sped past at 130mph. This must have been as strange for Murray as it was for us to write.

Advantage, Jaguar

In 2015, Jaguar announced a five-year deal to become the official car partner to the All England Tennis Club for Wimbledon. As part of the agreement, Jaguar supplies 170 vehicles to the London venue throughout the two-week tournament. No wonder the traffic is so bad on the streets of Wimbledon.

Rolls-Royce and the Tennis Classic

Away from Wimbledon, the stars at this year’s Tennis Classic at Hurlingham will be chauffeured around in a selection of Rolls-Royce models. The likes of Marin Cilic, David Ferrer and Richard Gasquet will escape the showers courtesy of a Phantom and a Ghost. At least they’ll have access to an umbrella.

The MercedesCup

“The estate version of the new E-Class is all set to be served up at the MercedesCup tennis tournament in Stuttgart.” You serve up the tennis puns, Mercedes-Benz, we’ll volley them home.

Angelique Kerber nets a new Porsche 911

In 2015, Germany’s Angelique Kerber won the Porsche Grand Prix tennis tournament in Germany by beating Denmark’s Caroline Wozniacki in the final. Her prize included a Porsche 911 Carrera 4 GTS. Nice.

Andy Murray and his BMW i8

Meanwhile, over in Munich, Britain’s Andy Murray collected the keys to his new i8 electric supercar after winning the BMW Open tennis tournament. Looks like he’s struggling to get comfy. Probably a good idea if Murray doesn’t mention this car to Jaguar…

Lindsay Davenport and her Porsche 911

Of course, scooping a new car by winning a tennis tournament is nothing new. Here’s American tennis star, Lindsay Davenport and her Porsche 911 Carrera 4 GTS at the German Porsche Grand Prix tennis tournament in 2004.

Tommy Haas and his BMW Z4

Meanwhile, in 2003, Tommy Haas drove home in a brand new BMW Z4 after beating Philipp Kohlschreiber in the final of the BMW Open tennis tournament in Munich. We won a few tennis tournaments at school, but we were never given a car as a prize. That’s probably because the tournaments were sponsored by the local double-glazing firm and not an international car company. Pictured is a later “Winner” Z4. 

Wimbledon and parking in 1923

But enough of these lavish prizes and on to something more civilised. Wimbledon is of course the oldest tennis tournament in the world. The first championships were held in 1870 and the Olympics arrived in Wimbledon in 1908. The tournament moved to Church Road in 1922 and No.1 Court opened in 1924. Here we see the tennis courts in 1923. You probably had to be someone very special to park this close to the court.

New Porsche website lets you design your own car wrap

Second Skin Porsche livery online

Porsche has launched a ‘Second Skin’ online tool that allows you to see your chosen car in classic motorsport livery – then have it made.

The scope for online creativity is, in fact, even wider than that, with Porsche saying: ‘It will also be possible to implement designs inspired by, for instance, fashion and the arts’.

Previously discontinued colours from Porsche will be available, and company will collaborate those in the car-wrapping industry, including artists, design studios, foil providers and vinyl paint manufacturers. The website will be up and running in July.

“As the livery segment is a very fragmented market, we have created a central port of call with Second Skin to guarantee quality and offer a comprehensive approach to finding a solution,” said Simon Weiss of Porsche Digital.

“For this reason, the entire design and ordering process is fully processed in Second Skin: customers select the vehicle model and design it independently or as part of a consultation to obtain a non-binding offer and finish the order online.”

Second Skin Porsche livery onlineThe poster car for the project is a 911 RSR that’s due to compete at Le Mans this coming weekend (June 15-16). It features a design by pop-art artist Richard Philips that combines three of his most popular works.

“We wanted to use the project in Le Mans to demonstrate what we can do in terms of automotive design and that there are no limits to the imagination with Second Skin,” said Florian Rothfuss, director of Porsche Digital.

“The greatest challenge was to apply a three-part image on a vehicle. We are also very happy with the result because the effect of the colours is unique.”

Video: World’s oldest Porsche could sell for £15 million

World's oldest Porsche

The Type 64 is the oldest surviving and, according to RM Sotheby’s, the ‘most historically significant’ Porsche in the world. Which means you’ll have to dig deep when it goes under the hammer in Monterey.

Ferdinand Porsche designed the Type 64 for the 1,500km Berlin to Rome race in September 1939. It was based on the KdF-Wagen – later known as the Beetle – and would be used to promote Germany’s new Autobahn system.

Three cars were commissioned, but just one Type 64 was completed before war was declared and the race was cancelled. The government turned its attention to the production of military vehicles, with the car becoming the property of the German labour front.

Genesis, chapter one

Porsche Type 64 chassis three

Undeterred, Ferdinand’s son Ferry built two more examples, one of which didn’t survive the war. Type 64 number three – the car headed to the Monterey sale in August – was completed in June 1940 using the chassis of the first car, which had been damaged following an accident with the MD of Volkswagen.

For a while, the Type 64 was used as a personal car by Ferdinand and Ferry, and was kept alongside the second Type 64 at the family estate in Zell-am-See. Ferry applied the company name to the bonnet and had the car registered in Austria.

In 1947, a young Pinin Farina was commissioned to restore the Type 64 ahead of its appearance alongside the Type 356 roadster on the roads around Innsbruck. 

Porsche Type 64 engine

The link to the 356 – and therefore the entire history of Porsche – is that the same group of engineers worked on both cars. This is the genesis of Porsche: the birth of an automotive icon.

Austrian privateer Otto Mathé purchased the car in 1949 and subsequently enjoyed a successful racing career throughout the 1950s. He must have loved it, because he kept hold of the Type 64 until his death in 1995.

Its next owner was Porsche historian and specialist Dr Thomas Gruber, who took the car to various racing events, including Goodwood.

Video: Porsche Type 64

‘Sit in the seat of Porsche’

Porsche Type 64 seat

Marcus Görig, car specialist at RM Sotheby’s, said: “Without the Type 64, there would be no Porsche 356, no 550, no 911.

“This is Porsche’s origin story, the car that birthed the company’s legend, and it offers collectors what is likely an unrepeatable opportunity to sit in the seat of Ferdinand and Ferry Porsche.

“With this car, the new owner will not only be invited to the first row of every Porsche event worldwide—they will be the first row!”

Porsche Type 64 auction

The 1939 Porsche Type 64 is the headline act at the RM Sotheby’s Monterey sale in August. It comes with spare parts, period images, historic documentation and the bragging rights associated with owning the most important Porsche in the world.

As for the price: you can bank on parting with at least $20 million (£15 million) for the honour of owning what Andy Prill, a marque specialist, has labelled “the most historically significant of all Porsche cars”.

Hump day: the story of the Porsche Speedster

Porsche Speedster history

Most iconic cars have a father (or mother) figure. An individual with the spark of an idea and the determination to see it through. In the case of the Porsche Speedster, that man was Max Hoffman.

The Austrian-born and New York-based car importer was responsible for the US introduction of countless European cars, not to mention the production of vehicles tailored to American audiences. One such car was the Porsche Speedster.

The Speedster story begins in 1950 when a Swiss journalist named Max Troesch showed Hoffman images of the first Porsche 356. He immediately ordered a pair, before travelling to the Paris Motor Show to meet Ferdinand Porsche.

Coming to America

Porsche Speedster

The pair shook hands on a deal to export 15 more cars to the US, with Hoffman becoming the factory’s unofficial man in America. In 1952, while dining at a New York restaurant, Hoffman convinced Ferry Porsche that his company needed a crest. Ferry grabbed a napkin and proceeded to draw a logo complete with stag horns and prancing horse from Stuttgart’s coat of arms. A brand identity was born.

Hoffman was a huge fan of the Porsche 356 and he used the car to compete in numerous events around the US, which did a great deal for the company’s image. “On the 1951 Mount Equinox Hillclimb, I drove a Porsche cabriolet over a course with two miles of snow at the end. I was so fast, Briggs Cunningham claimed my time was impossible and forced the organisers to make me drive it again,” Hoffman told Panorama magazine shortly before his death in 1981.

But Hoffman saw a need for a lightweight and inexpensive variant of the 356. Taking his cue from the 356 America Roadster, an exclusive sports car developed for the US market, Hoffman requested an inexpensive, stripped-back Porsche with a price tag of less than $3,000.

Porsche Speedster in America

The result was the Porsche 356 Speedster, and the beginning of a bloodline stretching to the current day. The Speedster combined the sheet steel body of the cabriolet with a raked windscreen, reduced equipment and a rain top. It sold for just $2,995 and was popular in the sunny states, particularly Southern California.

It won many admirers, including Hollywood icon James Dean, and further generations of the 356 Speedster were developed. The model reached its pinnacle with the 356 A 1500 GS Carrera GT Speedster: the first production Porsche to hit a top speed of 200km/h (124mph).

Lean or mean?

Production finished in 1958, and we’d have to wait three decades before the launch of a successor. It arrived in 1988 and was based on the 231hp 911 Carrera, featuring a wide ‘Turbo’ look. The removable windscreen was shortened and a manually operated rain top disappeared below a large plastic ‘bubble’ painted in the vehicle colour.

Porsche 911 Speedster G-Series

A leaner non-Turbo body was also available, but just 161 of these were built out of a total of 2,103 G-series Speedsters.

Both options were available on the 964 Carrera Speedster produced in 1992 and 1993, but while 930 units were ‘lean-bodied’, a mere 15 were built with the wider Turbo body. Highlights include a revamped roof mechanism for easier opening and closing, plus bucket seats from the Carrera RS painted in the vehicle colour.

Next up was one of the rarest Porsche cars ever built: the 993 Speedster. Just two were built: one for Ferdinand Alexander Porsche and the other for the US actor Jerry Seinfeld.

Porsche 911 Speedster

Porsche fans would have to wait a while before the arrival of the next Speedster, but it came in 2010 with the launch of the 997 variant. The traditional lower, more raked windscreen was present and correct, along with the evocative ‘double-bubble’ rear deck. Fittingly, just 356 units were produced.

One vision

All of which brings us back to the present day and the launch of the latest Porsche Speedster. Built to celebrate 70 years of Porsche – and to line the coffers in Stuttgart – it’s the last hurrah for the 991.2 generation 911 and a fitting tribute to the 50s original.

In many ways, it stays true to Hoffman’s vision, but there are a couple of key differences. While the Speedster for California dreamers was available to all, just 1,948 of these tribute acts are available (and they’ve all been snapped up).

Porsche 991 Speedster

Secondly, you can forget the ‘sub-3k’ price tag, because the 2019 Porsche 911 Speedster costs upwards of £211,599.

The alternative is to pick up an older model, although Speedsters don’t come cheap. At last year’s RM Sotheby’s Porsche 70th Anniversary Auction, a 1994 911 Speedster sold for $190,400 (£150,131), while a restoration-ready 356 A 1600 Super Speedster sold for $307,500 (£242,465).