How Porsche Is Driving Big Profits for VW Group

The Porsche Cayenne SUV has been a massive profit generator for Porsche -- and for the VW Group. Photo credit: Porsche

Volkswagen Group (VWAGY -1.13%) reported a third-quarter pre-tax profit of 2.78 billion euros on Wednesday, or $3.82 billion dollars. That was a 20% increase over VW's earnings in the third quarter of last year, and it was a number that came in well ahead of analyst estimates.

A big contributor to those profits was the famed sports-car brand Porsche, which VW absorbed into its business last year. As Motley Fool contributor John Rosevear explains in this short video, Porsche accounts for just a tiny portion of the giant VW Group's global sales -- but an outsized portion of the German auto giant's profits.