Nice work Porsche
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wemay
Site Donor 2023
Bravo! Excellent work by a top notch company.
thanks for sharing!
thanks for sharing!
Good they have a profit sharing program to rewarded their employees.
Bet it helps their tax situation too.
I wonder if the bonus paid is less than what they'd pay in taxes if they didn't spend it?
I wonder if the bonus paid is less than what they'd pay in taxes if they didn't spend it?
Bonus/Profit-sharing is just another form of expense used calculate corporate income tax.
Porsche's $2.9 billion profit(15%) from $18.9 billion revenue is fairly high for a car company. Most other companies usually earn about 8-10% profit.
Porsche's $2.9 billion profit(15%) from $18.9 billion revenue is fairly high for a car company. Most other companies usually earn about 8-10% profit.
In Germany to keep jobs at home cars that are exported are not taxed. It works and the overall revenue to the government is higher with this method.
If they tried that here in the US, politicians would have a stroke.
If they tried that here in the US, politicians would have a stroke.
Originally Posted By: redbone3
If you go to Germany and keep track of your purchases and receipts you can get the Mehrwertsteur (VAT) back when you leave the country. Basically they "detax" exports.
True.
If you buy something online and shipping address is in USA the price is reduced by 19%, some sites have VAT included in price of all products. I don't know if VAT is subtracted for shipping to other EU countries or not.
If you go to Germany and keep track of your purchases and receipts you can get the Mehrwertsteur (VAT) back when you leave the country. Basically they "detax" exports.
True.
If you buy something online and shipping address is in USA the price is reduced by 19%, some sites have VAT included in price of all products. I don't know if VAT is subtracted for shipping to other EU countries or not.
Originally Posted By: OneEyeJack
In Germany to keep jobs at home cars that are exported are not taxed. It works and the overall revenue to the government is higher with this method.
If they tried that here in the US, politicians would have a stroke.
I don't think this is true. You are saying the US taxes exports?
What exact export tax are you referring to?
I should add that these are the overall % of GDP taken as taxes:
Germany 40.6%
USA 26.9%
In Germany to keep jobs at home cars that are exported are not taxed. It works and the overall revenue to the government is higher with this method.
If they tried that here in the US, politicians would have a stroke.
I don't think this is true. You are saying the US taxes exports?
What exact export tax are you referring to?
I should add that these are the overall % of GDP taken as taxes:
Germany 40.6%
USA 26.9%
Originally Posted By: Evanson
I highly doubt it. It reduces tax but not any more than any other salary / wage / allowable expense.
Are you an expert on German tax law?
I highly doubt it. It reduces tax but not any more than any other salary / wage / allowable expense.
Are you an expert on German tax law?
Originally Posted By: Evanson
Originally Posted By: OneEyeJack
In Germany to keep jobs at home cars that are exported are not taxed. It works and the overall revenue to the government is higher with this method.
If they tried that here in the US, politicians would have a stroke.
I don't think this is true. You are saying the US taxes exports?
What exact export tax are you referring to?
I should add that these are the overall % of GDP taken as taxes:
Germany 40.6%
USA 26.9%
Not only are exports taxed but overseas operations are also taxed. There's a whole industry in setting up token companies to avoid taxes and keeping the cash offshore.
Originally Posted By: OneEyeJack
In Germany to keep jobs at home cars that are exported are not taxed. It works and the overall revenue to the government is higher with this method.
If they tried that here in the US, politicians would have a stroke.
I don't think this is true. You are saying the US taxes exports?
What exact export tax are you referring to?
I should add that these are the overall % of GDP taken as taxes:
Germany 40.6%
USA 26.9%
Not only are exports taxed but overseas operations are also taxed. There's a whole industry in setting up token companies to avoid taxes and keeping the cash offshore.
Originally Posted By: HerrStig
Originally Posted By: Evanson
I highly doubt it. It reduces tax but not any more than any other salary / wage / allowable expense.
Are you an expert on German tax law?
I am not an expert in German tax law but I have a solid background in international accounting which is why I said "highly doubt it" rather than "that's not true".
Originally Posted By: Evanson
I highly doubt it. It reduces tax but not any more than any other salary / wage / allowable expense.
Are you an expert on German tax law?
I am not an expert in German tax law but I have a solid background in international accounting which is why I said "highly doubt it" rather than "that's not true".
Originally Posted By: OneEyeJack
Not only are exports taxed but overseas operations are also taxed. There's a whole industry in setting up token companies to avoid taxes and keeping the cash offshore.
I think you are conflating the two.
Overseas operations are subject to the tax regimes of the overseas tax authorities.
A German company operating in the US is taxed according to US tax law.
An American company operating in Germany is taxed according to German tax law.
There will be regulations on transfer pricing etc to make sure multi nationals do not manipulate intercompany transactions to lower tax. However, this does not stop a company from setting up manufacturing in countries that help them from a cost and taxation basis.
The one major difference between the US and the rest of the world is with regards to lack of import duties or quotas. That puts foreign manufacturers at an advantage but if you see what has happened, Japanese and German manufacturers nevertheless manufacture vehicles in the US probably partially due to a lower cost of doing business.
But if you take say GM as a worldwide entity and VW as a worldwide entity, you would have to conclude that neither one could really outdo the other when it comes to using various tax systems to their advantage. For example, for sales to China, both will look to take advantage of any Chinese regulations, and China is now the biggest or second biggest vehicle market in the world. And as far as European markets are concerned, GM & Ford and Japanese manufacturers have manufactured vehicles in the same countries that European manufacturers have, so again are subject to a level playing field in terms of market conditions and tax.
Not only are exports taxed but overseas operations are also taxed. There's a whole industry in setting up token companies to avoid taxes and keeping the cash offshore.
I think you are conflating the two.
Overseas operations are subject to the tax regimes of the overseas tax authorities.
A German company operating in the US is taxed according to US tax law.
An American company operating in Germany is taxed according to German tax law.
There will be regulations on transfer pricing etc to make sure multi nationals do not manipulate intercompany transactions to lower tax. However, this does not stop a company from setting up manufacturing in countries that help them from a cost and taxation basis.
The one major difference between the US and the rest of the world is with regards to lack of import duties or quotas. That puts foreign manufacturers at an advantage but if you see what has happened, Japanese and German manufacturers nevertheless manufacture vehicles in the US probably partially due to a lower cost of doing business.
But if you take say GM as a worldwide entity and VW as a worldwide entity, you would have to conclude that neither one could really outdo the other when it comes to using various tax systems to their advantage. For example, for sales to China, both will look to take advantage of any Chinese regulations, and China is now the biggest or second biggest vehicle market in the world. And as far as European markets are concerned, GM & Ford and Japanese manufacturers have manufactured vehicles in the same countries that European manufacturers have, so again are subject to a level playing field in terms of market conditions and tax.
You mean the CEO didn't pocket ALL OF IT ?
Porsche made 200,000 vehicles last year? This press release says 189,849:
http://press.porsche.com/news/release.php?id=915
That's less than the US-only production of any one of a number of popular models from Toyota, GM or Ford.
Yes, good job. For a GM or Ford, the article would read "directors approve record one-time dividend to shareholders." Or maybe not, it would probably be banked as a reserve for future recall purposes.
http://press.porsche.com/news/release.php?id=915
That's less than the US-only production of any one of a number of popular models from Toyota, GM or Ford.
Yes, good job. For a GM or Ford, the article would read "directors approve record one-time dividend to shareholders." Or maybe not, it would probably be banked as a reserve for future recall purposes.
It's a little known fact that Porsche's transformation to profitability and quality was based on Toyota's lean principles.
http://www.leanblog.org/2009/01/porsches-lean-culture-and-leadership/
Quote:
Porsche was also hampered by antiquated production methods. Some 20% of its parts were delivered three or more days too late, for example. Wiedeking, who had been deeply impressed by what he’d seen on visits to Japanese auto firms, believed that only a radical, “lean manufacturing” cure would save the company. He flew in teams of the same Japanese consultants who had helped Toyota and gave them free rein. “A cultural revolution from top to bottom” is the way he describes what happened next, as the consultants organized the workforce into teams and one by one eliminated poor practices. Wiedeking made one now-fabled appearance on the assembly line wielding a circular saw, which he used to cut down the roof-high racks of spare parts that towered over the production line.
http://www.leanblog.org/2009/01/porsches-lean-culture-and-leadership/
Quote:
Porsche was also hampered by antiquated production methods. Some 20% of its parts were delivered three or more days too late, for example. Wiedeking, who had been deeply impressed by what he’d seen on visits to Japanese auto firms, believed that only a radical, “lean manufacturing” cure would save the company. He flew in teams of the same Japanese consultants who had helped Toyota and gave them free rein. “A cultural revolution from top to bottom” is the way he describes what happened next, as the consultants organized the workforce into teams and one by one eliminated poor practices. Wiedeking made one now-fabled appearance on the assembly line wielding a circular saw, which he used to cut down the roof-high racks of spare parts that towered over the production line.
Just in time parts delivery works great, in a business environment with good, stable labor and vendor/supplier relationships.
In the US the CEO's and money changers get it.
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