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Porsche Australia price cuts in excess of $36,000 irks customers

Have you ever gone to the store, only to become irked after learning that the new [*insert widget here*] that you bought just last week has gone through a price drop? If you're particularly thrifty, even if it's only a couple of bucks, you probably brought in your receipt to see if the store would issue you a credit for the difference. Now, imagine that the widget in question isn't a minor purchase, it's a Porsche - and the price drop isn't just a few bucks - it's thousands.
That's the unhappy scenario that recently faced a number of Australian luxury car buyers and the uncomfortable conversation awaiting the German automaker. According to GoAuto, Porsche Australia recently whacked up to $36,000 off the price of its models in order to jumpstart sales Down Under - the Panamera range itself saw cuts between $5,500 and more than $36,000. The aggressive price cut was a strategy designed to drive sales of more than 3,000 cars locally, a yearly goal originally set for 2018, but now hoped for as early as 2016.
Australia is known for its comparatively high car prices, so the dramatic price cuts were undoubtedly welcome news to potential Porsche shoppers. However, around 50 existing customers were understandably agitated by the reductions because they purchased their cars just before the adjustments took effect. Not only did they stand to lose out on the deals, they also had good reason to fear that their new cars' residual values would take a beating.

Ferrari return to Le Mans looking more likely?

Statements made by Ferrari president Luca di Montezemolo may indicate that the Italian brand could return to a form of racing it's been absent from for 40 years - prototype racing. That's right, LMP1 could see a factory Ferrari team for the first time since 1973, if a report from ESPN F1 is to be believed.
"We have won with the 458 GTE, but I also quite like the idea of racing at Le Mans in the highest category: who knows, maybe one day we can return and win, say thanks and come home," Montezemolo said. "Maybe we should give it some consideration..."
These seemingly idle, off-hand comments might not hold much water, were rumors about Ferrari's return to prototype racing not swirling as recently as August. There's also the fact that the upcoming, 1.6-liter, turbocharged V6 being used for Formula One complies with the Automobile Club de l'Ouest's own LMP1 regulations, according to ESPN. Finally, Ferrari returning to Le Mans might also explain this video of a camouflaged Ferrari LaFerrari testing a new turbocharged engine, which we showed you a few weeks back. There's a fair chance that what we're actually seeing in that video are the early stages of a new Ferrari prototype testing.

VW makes $23K on every Porsche sold, more than Bentley or Lamborghini

It's a good time to be in the luxury car business. In Volkswagen Group's financial report for the 2013 fiscal year, it is revealed that that Porsche enjoyed an operating margin of 18 percent. That means the Stuttgart brand made on average about $23,200 per car sold, according to BusinessWeek. Bentley wasn't far behind, and Audi (which was combined with Lamborghini) posted a 10.1 percent margin. This compares to only around 2.9 percent for the Volkswagen brand.
"Luxury brands are on fire," said Dave Sullivan, an industry analyst at AutoPacific. He said that the average profit margin is between six and eight percent. Brands like Porsche and Bentley have the benefit of competing in rarefied markets. Buyers looking at one their vehicles have fewer models to shop against and don't care as much about price. They can also charge more for options, which further boosts income, according to BusinessWeek.
In a way, we should be more impressed by the continued success from Audi. Its models generally have direct competitors in every segment from the other premium automakers. Plus, their buyers aren't the captains of industry who are shopping for a Bentley. Still, the Four Rings is leading rivals in sales so far this year.