Porsche: Sales, Marketing, and Financial News
03-04-2003, 09:20 AM
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Porsche: Sales, Marketing, and Financial News
Geneva, March 4 (Bloomberg) -- Porsche AG, the carmaker with the highest profit margins, cut production of the 911 and Boxster models as falling stocks curb spending by the wealthy and prospect of a war in Iraq damps economies. The shares fell 12 percent.
The Stuttgart, Germany-based automaker cut output by "several thousand'' units of each model, said Chief Executive Officer Wendelin Wiedeking in an interview at the Geneva car show. Porsche expects sales of both cars to fall in the current financial year.
Demand for the 911 model, with a starting price tag of about $90,000, has plummeted as securities companies in the U.S., Porsche's largest market, slashed 75,400 jobs and cut bonuses. Sales of the Boxster, with a base price of $46,000, also are off.
"The 911 is the cash cow for Porsche,'' said Knut Kuehnhausen, who helps manage 260 billion euros ($284 billion) at AXA Investment in Frankfurt and owns Porsche shares. ``The danger for Porsche is that their customers, despite being wealthy, are having second thoughts about spending with the generally bad economy and possible
"We won't be able to reach last year's record sales for the 911,'' said Wiedeking. In North America, sales of the 911 fell 39 percent in February, after declining the previous two months. Sales of the Boxster declined 35 percent last month. Last year, sales fell 19 percent.
911 Decline
"Where's the floor for the 911?'' said Henrik Lier, an analyst at WestLB Panmure, who rates the company ``neutral.'' ``Everyone knows demand is going to fall, but no one knows how much.''
The company brought out a revamped version of the Boxster model last year that was not new enough to rejuvenate sales. In the first half of the fiscal year, or August through January, sales of the Boxster fell 8 percent.
Porsche shares have outperformed other car companies as investors expected demand for luxury goods to be more resistant than overall demand. Investors also anticipated rising sales and profits from the Cayenne.
"Porsche is one of the few companies that hadn't really fallen until this year,'' said Werner Lykowsky, who helps manage 5.5 billion euros at Helaba Invest. ``Investors were taking their money off the table.''
Cayenne Hope
The new Cayenne sport-utility vehicle should still increase sales and earnings, the CEO said.
Wiedeking has forecast the company will surpass last year's sales and earnings with the vehicle. One of Porsche's goals with the car was to reduce the dependence on its two main models. Even if sales of the Boxster and 911 fall this year, Porsche should still increase sales and profit with the addition of the SUV.
The 340-horsepower Cayenne S is designed to lure buyers from Bayerische Motoren Werke AG's X5, which starts at about 41,600 euros, DaimlerChrysler AG's Mercedes-Benz M-Class, with a base price of about 38,000 euros, and Ford Motor Co.'s Land Rover. Porsche has said it already has orders for at least 25,000 Cayennes, or a year's worth of production.
The carmaker also displayed the $400,000 Carrera GT sports car at the Geneva car show. It will be built starting in the last few months of 2003 at the company's factory in Leipzig, Germany, where it also makes the Cayenne. Porsche expects to sell 1,500 units through the car's life cycle.
Competitors
The model's competitors will be Fiat SpA's Ferrari, Ford's Aston Martin and Audi AG's Lamborghini. The Carrera GT will be more than twice as expensive as a top-of-the line Porsche 911, which costs $180,000.
To protect North American earnings, Porsche has hedged against changes in the euro-dollar exchange rate through 2006, Wiedeking said. The euro has appreciated 26 percent against the dollar over the last 12 months.
The Stuttgart, Germany-based automaker cut output by "several thousand'' units of each model, said Chief Executive Officer Wendelin Wiedeking in an interview at the Geneva car show. Porsche expects sales of both cars to fall in the current financial year.
Demand for the 911 model, with a starting price tag of about $90,000, has plummeted as securities companies in the U.S., Porsche's largest market, slashed 75,400 jobs and cut bonuses. Sales of the Boxster, with a base price of $46,000, also are off.
"The 911 is the cash cow for Porsche,'' said Knut Kuehnhausen, who helps manage 260 billion euros ($284 billion) at AXA Investment in Frankfurt and owns Porsche shares. ``The danger for Porsche is that their customers, despite being wealthy, are having second thoughts about spending with the generally bad economy and possible
"We won't be able to reach last year's record sales for the 911,'' said Wiedeking. In North America, sales of the 911 fell 39 percent in February, after declining the previous two months. Sales of the Boxster declined 35 percent last month. Last year, sales fell 19 percent.
911 Decline
"Where's the floor for the 911?'' said Henrik Lier, an analyst at WestLB Panmure, who rates the company ``neutral.'' ``Everyone knows demand is going to fall, but no one knows how much.''
The company brought out a revamped version of the Boxster model last year that was not new enough to rejuvenate sales. In the first half of the fiscal year, or August through January, sales of the Boxster fell 8 percent.
Porsche shares have outperformed other car companies as investors expected demand for luxury goods to be more resistant than overall demand. Investors also anticipated rising sales and profits from the Cayenne.
"Porsche is one of the few companies that hadn't really fallen until this year,'' said Werner Lykowsky, who helps manage 5.5 billion euros at Helaba Invest. ``Investors were taking their money off the table.''
Cayenne Hope
The new Cayenne sport-utility vehicle should still increase sales and earnings, the CEO said.
Wiedeking has forecast the company will surpass last year's sales and earnings with the vehicle. One of Porsche's goals with the car was to reduce the dependence on its two main models. Even if sales of the Boxster and 911 fall this year, Porsche should still increase sales and profit with the addition of the SUV.
The 340-horsepower Cayenne S is designed to lure buyers from Bayerische Motoren Werke AG's X5, which starts at about 41,600 euros, DaimlerChrysler AG's Mercedes-Benz M-Class, with a base price of about 38,000 euros, and Ford Motor Co.'s Land Rover. Porsche has said it already has orders for at least 25,000 Cayennes, or a year's worth of production.
The carmaker also displayed the $400,000 Carrera GT sports car at the Geneva car show. It will be built starting in the last few months of 2003 at the company's factory in Leipzig, Germany, where it also makes the Cayenne. Porsche expects to sell 1,500 units through the car's life cycle.
Competitors
The model's competitors will be Fiat SpA's Ferrari, Ford's Aston Martin and Audi AG's Lamborghini. The Carrera GT will be more than twice as expensive as a top-of-the line Porsche 911, which costs $180,000.
To protect North American earnings, Porsche has hedged against changes in the euro-dollar exchange rate through 2006, Wiedeking said. The euro has appreciated 26 percent against the dollar over the last 12 months.
03-04-2003, 11:04 PM
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if they cut the price of the 911 by...60%...their sales numbers would be sure to go up...i know i'd buy one 
seriously though porches, though are true sports cars, are insanely overpriced...for the price of a boxter you could get a 'vette that would match the performance of the 911t...granted that some buyers will buy solely for the name recognition, i think enthusiasts would know a good deal when they see it
i know that id rather get an m3 that a boxter s, and an nsx than a 911...but thats just me...
seriously though porches, though are true sports cars, are insanely overpriced...for the price of a boxter you could get a 'vette that would match the performance of the 911t...granted that some buyers will buy solely for the name recognition, i think enthusiasts would know a good deal when they see it
i know that id rather get an m3 that a boxter s, and an nsx than a 911...but thats just me...
03-04-2003, 11:07 PM
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Not surprising, look at the NYT Auto section on Sunday's and look at the inventory some of those dealers have....unreal, who the fuck is going to buy all those cars?
As mentioned above and like I have always said, Porsche makes a wonderful car but are ridiculously overpriced.
As mentioned above and like I have always said, Porsche makes a wonderful car but are ridiculously overpriced.
06-16-2003, 10:37 AM
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Porsche: Financial Status news **New CEO Appointed (page 1)**
In my opinion, these are acts of desparation due to LACK OF PRODUCT. We'll see what happens:
----------------------------------------------------------------------
Porsche to launch certified used-vehicle program; dealers thrilled with plan
By DIANA T. KURYLKO | Automotive News
With sales of its bread-and-butter sports cars down sharply, Porsche Cars North America is giving its dealers the top item on their wish list - a certified used-vehicle program.
Porsche is the last luxury brand to launch a certified program, which dealers consider essential for protecting residual values and attracting buyers. Last year, 1.28 million certified used vehicles were sold in the United States, up 87 percent over 2001, according to the Automotive News Data Center and Autodata Corp.
Details of the program, which started this month, were disclosed by dealers. Porsche headquarters in Atlanta refused to comment.
Under the program, a 4- to-8-year-old car no longer under original warranty would be certified for another two years and up to 100,000 miles. Vehicles still under the new-car warranty are guaranteed up to six years, or 100,000 miles.
Porsche's warranty on new cars is 4 years/50,000 miles.
The cost to dealers ranges from $1,495 for a Boxster, Porsche's cheapest sports car, to $1,595 for the Cayenne SUV.
Dealers are delighted with the program. "We've been begging Porsche for years to get into this business," says Gary Ackerman, owner of Gaudin Jaguar-Porsche-Aston Martin in Las Vegas. "It is extremely important for resale value and for long-term residuals on our vehicles."
Chris Pfaff, owner of H.J. Pfaff Motors Inc. in Woodbridge, Ontario, and a member of Porsche's dealer board of regents, says the certified program helps protect the franchise by heading off non-Porsche dealers who sell used Porsches.
"There are a lot of independent used-car dealers that want to be used Porsche dealers. This will make it harder for them," he says.
Other luxury makers have been extremely successful luring first-time buyers to their brands via the certified program.
BMW is the certified luxury leader. Through May, its certified sales are up 17 percent from a year earlier to 28,123.
Porsche's car sales have slowed in recent months because of a combination of factors that include severe winter, economic uncertainty and the war with Iraq, a company spokesman said last week. Car sales through May are off 26 percent from the same period a year earlier, although the franchise is up overall because of the new Cayenne SUV.
"Porsche is the ultimate deferrable purchase," he said.
The slowdown has saddled dealers with an unusually high inventory of unsold vehicles.
Porsche reported a 91-day supply of Boxsters on hand on June 1, up from 87 a month earlier, and an 88-day supply of Carreras, down from 100. Overall, it had a 77-day supply of cars on hand on June 1, up three days from a month earlier, according to the Automotive News Data Center.
The Porsche spokesman said production of the Boxster and 911 has been cut and company stocks will fall in the coming months. Unlike other luxury makers, Porsche offers no incentives or rebates on its models.
On the other hand, Porsche is trying to increase its stockpile of Cayenne SUVs, the spokesman said. Stocks of the new truck increased to 2,500 units or 49 days on June 1 from 31 days a month earlier.
"With Cayenne, we knew we had to stock more than we would with the sports cars because it's a different customer," he said.
"The Cayenne customer won't wait three months for delivery, like a 911 buyer will. By and large, those customers want to be able to choose from inventory you have on hand."
----------------------------------------------------------------------
Porsche to launch certified used-vehicle program; dealers thrilled with plan
By DIANA T. KURYLKO | Automotive News
With sales of its bread-and-butter sports cars down sharply, Porsche Cars North America is giving its dealers the top item on their wish list - a certified used-vehicle program.
Porsche is the last luxury brand to launch a certified program, which dealers consider essential for protecting residual values and attracting buyers. Last year, 1.28 million certified used vehicles were sold in the United States, up 87 percent over 2001, according to the Automotive News Data Center and Autodata Corp.
Details of the program, which started this month, were disclosed by dealers. Porsche headquarters in Atlanta refused to comment.
Under the program, a 4- to-8-year-old car no longer under original warranty would be certified for another two years and up to 100,000 miles. Vehicles still under the new-car warranty are guaranteed up to six years, or 100,000 miles.
Porsche's warranty on new cars is 4 years/50,000 miles.
The cost to dealers ranges from $1,495 for a Boxster, Porsche's cheapest sports car, to $1,595 for the Cayenne SUV.
Dealers are delighted with the program. "We've been begging Porsche for years to get into this business," says Gary Ackerman, owner of Gaudin Jaguar-Porsche-Aston Martin in Las Vegas. "It is extremely important for resale value and for long-term residuals on our vehicles."
Chris Pfaff, owner of H.J. Pfaff Motors Inc. in Woodbridge, Ontario, and a member of Porsche's dealer board of regents, says the certified program helps protect the franchise by heading off non-Porsche dealers who sell used Porsches.
"There are a lot of independent used-car dealers that want to be used Porsche dealers. This will make it harder for them," he says.
Other luxury makers have been extremely successful luring first-time buyers to their brands via the certified program.
BMW is the certified luxury leader. Through May, its certified sales are up 17 percent from a year earlier to 28,123.
Porsche's car sales have slowed in recent months because of a combination of factors that include severe winter, economic uncertainty and the war with Iraq, a company spokesman said last week. Car sales through May are off 26 percent from the same period a year earlier, although the franchise is up overall because of the new Cayenne SUV.
"Porsche is the ultimate deferrable purchase," he said.
The slowdown has saddled dealers with an unusually high inventory of unsold vehicles.
Porsche reported a 91-day supply of Boxsters on hand on June 1, up from 87 a month earlier, and an 88-day supply of Carreras, down from 100. Overall, it had a 77-day supply of cars on hand on June 1, up three days from a month earlier, according to the Automotive News Data Center.
The Porsche spokesman said production of the Boxster and 911 has been cut and company stocks will fall in the coming months. Unlike other luxury makers, Porsche offers no incentives or rebates on its models.
On the other hand, Porsche is trying to increase its stockpile of Cayenne SUVs, the spokesman said. Stocks of the new truck increased to 2,500 units or 49 days on June 1 from 31 days a month earlier.
"With Cayenne, we knew we had to stock more than we would with the sports cars because it's a different customer," he said.
"The Cayenne customer won't wait three months for delivery, like a 911 buyer will. By and large, those customers want to be able to choose from inventory you have on hand."
06-16-2003, 04:51 PM
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IMHO, Porsche has shot themselves in the foot pretty bad this time
First the made that HUGE blunder w/the 03, 04 model year fiasco on the Cayenne
IMO, Porsche should have built a 4dr sport sedan priced at abt 55K w/the standard cayenne v8. This sports sedan would have gave them flexibility in their model line-up since many Porsche owner are zealots and very very faithful to the brand. This would have made it possible for them to have an everyday Porsche and a weekend Porsche.
Theres a saying that "Porsche, accept no substitues" I beleive and they could have had used this slogan to market this new sports sedan. I'm taking abt a sedan thats in b/w a 5&7 series, a E&S class etc.
Also, Porsche are known to be reliable cars, and I'm pretty sure that they could market that fact to the mb/bmw owners whose 60-120k sedan is in the shop having issues.
If Porsche had made this sedan 1st, they could've have introduced something like say the Cayenne 1-2 yrs down the line, and reduce the shock some people had when they heard of a porsche SUV. IMO, going from 2dr sports/semi-exotic/exotic cars to SUVs was 2 big of a jump for Porsche and something they're sales will show once the initial interest in the cayenne wears off (1.5 yrs )
First the made that HUGE blunder w/the 03, 04 model year fiasco on the Cayenne
IMO, Porsche should have built a 4dr sport sedan priced at abt 55K w/the standard cayenne v8. This sports sedan would have gave them flexibility in their model line-up since many Porsche owner are zealots and very very faithful to the brand. This would have made it possible for them to have an everyday Porsche and a weekend Porsche.
Theres a saying that "Porsche, accept no substitues" I beleive and they could have had used this slogan to market this new sports sedan. I'm taking abt a sedan thats in b/w a 5&7 series, a E&S class etc.
Also, Porsche are known to be reliable cars, and I'm pretty sure that they could market that fact to the mb/bmw owners whose 60-120k sedan is in the shop having issues.
If Porsche had made this sedan 1st, they could've have introduced something like say the Cayenne 1-2 yrs down the line, and reduce the shock some people had when they heard of a porsche SUV. IMO, going from 2dr sports/semi-exotic/exotic cars to SUVs was 2 big of a jump for Porsche and something they're sales will show once the initial interest in the cayenne wears off (1.5 yrs )
06-16-2003, 08:33 PM
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I agree that the interest in the Cayenne will slow in about 1.5 yeras, but I disagree that a sports sedan would have been a better move. By the way such a vehicle is on the drawing board at Porsche.
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06-16-2003, 08:33 PM
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In order for a sport sedan to make money for Porsche, it woudl have to be based on an Audi. I do not think Audi would be too happy about that.
Taking a VW suv, and pricing it 30k out of its price range is not a big deal.
Basically, if you are only going to sell simple sports cars, you aren't going to make money.
I do not like Porsche, or German cars at all for that matter (Cept the SL)
Taking a VW suv, and pricing it 30k out of its price range is not a big deal.
Basically, if you are only going to sell simple sports cars, you aren't going to make money.
I do not like Porsche, or German cars at all for that matter (Cept the SL)
06-17-2003, 09:54 PM
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Doesn't sound like a bad idea to me 
Lots of boxsters are coming off lease now, and some of them aren't covered under warrenty anymore. This makes them unatractive to many buyers. Add a factory warrenty to the mix and it sounds like they can re-sell a lot of used cars.
Get me a used 993 w/ a factory warrenty ?? Sounds good to me
Lots of boxsters are coming off lease now, and some of them aren't covered under warrenty anymore. This makes them unatractive to many buyers. Add a factory warrenty to the mix and it sounds like they can re-sell a lot of used cars.
Get me a used 993 w/ a factory warrenty ?? Sounds good to me
07-07-2003, 09:15 PM
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Porsche to Cut Workweek at German Plant to 38 Hours
Porsche to Cut Workweek at German Plant to 38 Hours, Focus Says
Source: Bloomberg-Porsche AG, the German sports-car maker, will reduce the workweek to 38 hours from 40 hours at its Leipzig plant in eastern Germany, the magazine Focus Money reported, without saying where it got the information.
The shorter workweek will begin in August in the plant where 300 employees make the Cayenne sports-utility vehicle, Focus said. Eastern German workers in IG Metall, Europe's biggest industrial union, have been striking since June 2 for a 35-hour week.
Porsche is negotiating a ``supplement to the contract'' governing work conditions with the union, the magazine said.
Source: Bloomberg-Porsche AG, the German sports-car maker, will reduce the workweek to 38 hours from 40 hours at its Leipzig plant in eastern Germany, the magazine Focus Money reported, without saying where it got the information.
The shorter workweek will begin in August in the plant where 300 employees make the Cayenne sports-utility vehicle, Focus said. Eastern German workers in IG Metall, Europe's biggest industrial union, have been striking since June 2 for a 35-hour week.
Porsche is negotiating a ``supplement to the contract'' governing work conditions with the union, the magazine said.
07-07-2003, 11:36 PM
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Re: Porsche to Cut Workweek at German Plant to 38 Hours
Originally posted by gavriil
Porsche to Cut Workweek at German Plant to 38 Hours, Focus Says
Source: Bloomberg-Porsche AG, the German sports-car maker, will reduce the workweek to 38 hours from 40 hours at its Leipzig plant in eastern Germany, the magazine Focus Money reported, without saying where it got the information.
The shorter workweek will begin in August in the plant where 300 employees make the Cayenne sports-utility vehicle, Focus said. Eastern German workers in IG Metall, Europe's biggest industrial union, have been striking since June 2 for a 35-hour week.
Porsche is negotiating a ``supplement to the contract'' governing work conditions with the union, the magazine said.
Porsche to Cut Workweek at German Plant to 38 Hours, Focus Says
Source: Bloomberg-Porsche AG, the German sports-car maker, will reduce the workweek to 38 hours from 40 hours at its Leipzig plant in eastern Germany, the magazine Focus Money reported, without saying where it got the information.
The shorter workweek will begin in August in the plant where 300 employees make the Cayenne sports-utility vehicle, Focus said. Eastern German workers in IG Metall, Europe's biggest industrial union, have been striking since June 2 for a 35-hour week.
Porsche is negotiating a ``supplement to the contract'' governing work conditions with the union, the magazine said.
Let the cost cutting begin!!!!!!!! They'd better release a 4door sports sedan else this company is going to go into the shitter!
09-03-2003, 05:48 PM
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Porsche: Sales, Marketing, and Financial news
From Auto Spies:
We told you about a new rebate program from Porsche geared toward current Porsche owners.
Well, we were right, it is really happening.
How much are the rebates?
From $4-8K depending on the model (the higher the price, the bigger the rebate, Cayenne, C4S and Turbos excluded).
That's an added $4-$8K off after you've cut your best deal.
Basically, it works out to being able to buy a Porsche for BELOW invoice.
How do I get it?
You must be a current or previous Porsche owner to qualify.
Want to hear a little rumor?
We hear if they don't move the remaining inventory throught his program, they will open it up to EVERYONE!
We would suggest calling or emailing Glen Fagin at The Auto Gallery Glen A. Fagin (Toll Free: 877-526-6231 ext. 1675 glenf@laautogallery.com) if you live west of the Mississipi and Ed Keady (704-566-2242 Direct, 800-315-8192-Toll Free ed.keady@hendrickauto.com ) if you are in the East. They're ready to make unheard of deals for Auto Spies readers
We told you about a new rebate program from Porsche geared toward current Porsche owners.
Well, we were right, it is really happening.
How much are the rebates?
From $4-8K depending on the model (the higher the price, the bigger the rebate, Cayenne, C4S and Turbos excluded).
That's an added $4-$8K off after you've cut your best deal.
Basically, it works out to being able to buy a Porsche for BELOW invoice.
How do I get it?
You must be a current or previous Porsche owner to qualify.
Want to hear a little rumor?
We hear if they don't move the remaining inventory throught his program, they will open it up to EVERYONE!
We would suggest calling or emailing Glen Fagin at The Auto Gallery Glen A. Fagin (Toll Free: 877-526-6231 ext. 1675 glenf@laautogallery.com) if you live west of the Mississipi and Ed Keady (704-566-2242 Direct, 800-315-8192-Toll Free ed.keady@hendrickauto.com ) if you are in the East. They're ready to make unheard of deals for Auto Spies readers
11-17-2003, 05:59 PM
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Porsche again offered incentives to help sell aging inventory
By DIANA T. KURYLKO | Automotive News
NASHVILLE, Tenn. -- Faced with a glut of sports cars last summer, Porsche Cars North America Inc. quietly did what its executives swore they would never do again - offer customer incentives.
To cut bloated inventories, Porsche put $2,000 to $3,500 cash rebates on its aging 911 and Boxster models. The deal, which was in effect from Aug. 1 to Oct. 31, was offered only to Porsche owners and was not advertised.
The incentives came a year after the company's top executives in Stuttgart abruptly ended a $500 cash-back program for Porsche Club of America members that had not been authorized by headquarters.
When Porsche AG CEO Wendelin Wiedeking killed the program in August 2002, he vowed: "It won't happen again."
Wiedeking said he would rather cut production than taint the Porsche brand with incentives. He also publicly scolded Fred Schwab, then Porsche Cars North America's CEO.
But Wiedeking changed his mind when sports car stocks piled up this summer. Inventories rose despite three production cuts last year and this year that slashed output by 7,000 units.
U.S. sales of the 911 and Boxster fell 28 percent to 13,178 during the first 10 months of this year. But the summer incentive program helped slow the rate of decline.
Porsche Cars North America had a 76-day supply of sports cars on Aug. 1, but supplies had fallen to 54 days by Nov. 1. Boxster supplies have fallen from a 92-day level on July 1 to 76 days on Nov. 1. Supplies of the 911 Carrera 4 have come down from a 116-day level on Aug. 1 to 75 days on Nov. 1.
Peter Schwarzenbauer, who replaced Schwab in March, says the cash program was a pilot. A review began this month to determine whether rebates will be offered again, he says.
Schwarzenbauer spoke at an introduction of two Porsche cabriolets in Nashville, Tenn.
He is adamant that Porsche's incentives weren't like the rest of the industry's. "We are not offering incentives as I understand them. We are offering current owners a loyalty program rather than trunk money. Incentives, we think, are a wrong tool."
As for the apparent about-face since the summer of 2002, Schwarzenbauer said, "I wasn't around then."
Porsche AG spokesman Michael Schimpke in Stuttgart says the summer's rebates were intended to reduce stock and increase dealer inventories for a certified used-car program that began in July. He says the incentives had the full backing of Stuttgart.
"This was done for a special time in America when a lot of things like the economy and the war came together," Schimpke says. "We didn't know how Cayenne sales would go or how things would shape up for Porsche."
Only vehicles in stock were eligible for the rebate, he says.
"It was no secret that the days supply was high on the sports cars," says Jerry Nelson, owner of Schneider-Nelson Porsche in West Long Branch, N.J., and until recently chairman of Porsche's national dealer council.
Nelson says bulging inventories were the main topic of discussion at a dealer council meeting in Germany at the time of the Frankfurt auto show in early September.
"It got high," Nelson says. "With Boxster and Boxster S it was about 100 days.
"We were caught off guard by the war. We are trying to get the franchise target for inventory to 45 days supply."
In particular, the incentives helped dealers with customers coming off leases, Nelson says, "because there really wasn't any advertising of the rebates.
"Porsche had three large production cuts, and that's truly the bigger solution," he says. "If you give rebates all the time you don't help the resale value of the vehicles."
Porsche's sports car lineup is aging. The 911, which debuted seven years ago, will be replaced during the 2005 model year.
A successor for the 8-year-old Boxster is planned for a year later. But the new Cayenne SUV is offsetting lower sales of the older cars. Altogether, Porsche's U.S. sales are up 25.8 percent this year.
The Cayenne accounts for nearly half of Porsche's monthly volume. Sales of the SUV began in March, and 9,899 units were sold through October.
NASHVILLE, Tenn. -- Faced with a glut of sports cars last summer, Porsche Cars North America Inc. quietly did what its executives swore they would never do again - offer customer incentives.
To cut bloated inventories, Porsche put $2,000 to $3,500 cash rebates on its aging 911 and Boxster models. The deal, which was in effect from Aug. 1 to Oct. 31, was offered only to Porsche owners and was not advertised.
The incentives came a year after the company's top executives in Stuttgart abruptly ended a $500 cash-back program for Porsche Club of America members that had not been authorized by headquarters.
When Porsche AG CEO Wendelin Wiedeking killed the program in August 2002, he vowed: "It won't happen again."
Wiedeking said he would rather cut production than taint the Porsche brand with incentives. He also publicly scolded Fred Schwab, then Porsche Cars North America's CEO.
But Wiedeking changed his mind when sports car stocks piled up this summer. Inventories rose despite three production cuts last year and this year that slashed output by 7,000 units.
U.S. sales of the 911 and Boxster fell 28 percent to 13,178 during the first 10 months of this year. But the summer incentive program helped slow the rate of decline.
Porsche Cars North America had a 76-day supply of sports cars on Aug. 1, but supplies had fallen to 54 days by Nov. 1. Boxster supplies have fallen from a 92-day level on July 1 to 76 days on Nov. 1. Supplies of the 911 Carrera 4 have come down from a 116-day level on Aug. 1 to 75 days on Nov. 1.
Peter Schwarzenbauer, who replaced Schwab in March, says the cash program was a pilot. A review began this month to determine whether rebates will be offered again, he says.
Schwarzenbauer spoke at an introduction of two Porsche cabriolets in Nashville, Tenn.
He is adamant that Porsche's incentives weren't like the rest of the industry's. "We are not offering incentives as I understand them. We are offering current owners a loyalty program rather than trunk money. Incentives, we think, are a wrong tool."
As for the apparent about-face since the summer of 2002, Schwarzenbauer said, "I wasn't around then."
Porsche AG spokesman Michael Schimpke in Stuttgart says the summer's rebates were intended to reduce stock and increase dealer inventories for a certified used-car program that began in July. He says the incentives had the full backing of Stuttgart.
"This was done for a special time in America when a lot of things like the economy and the war came together," Schimpke says. "We didn't know how Cayenne sales would go or how things would shape up for Porsche."
Only vehicles in stock were eligible for the rebate, he says.
"It was no secret that the days supply was high on the sports cars," says Jerry Nelson, owner of Schneider-Nelson Porsche in West Long Branch, N.J., and until recently chairman of Porsche's national dealer council.
Nelson says bulging inventories were the main topic of discussion at a dealer council meeting in Germany at the time of the Frankfurt auto show in early September.
"It got high," Nelson says. "With Boxster and Boxster S it was about 100 days.
"We were caught off guard by the war. We are trying to get the franchise target for inventory to 45 days supply."
In particular, the incentives helped dealers with customers coming off leases, Nelson says, "because there really wasn't any advertising of the rebates.
"Porsche had three large production cuts, and that's truly the bigger solution," he says. "If you give rebates all the time you don't help the resale value of the vehicles."
Porsche's sports car lineup is aging. The 911, which debuted seven years ago, will be replaced during the 2005 model year.
A successor for the 8-year-old Boxster is planned for a year later. But the new Cayenne SUV is offsetting lower sales of the older cars. Altogether, Porsche's U.S. sales are up 25.8 percent this year.
The Cayenne accounts for nearly half of Porsche's monthly volume. Sales of the SUV began in March, and 9,899 units were sold through October.
01-23-2004, 07:15 AM
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Porsche 1st-Half Net Income Rises Less Than Expected
Jan. 23 (Bloomberg) -- Porsche AG's fiscal first-half profit rose a less-than-expected 16 percent as sales of the 911 and Boxster sports cars plunged. The shares fell as much as 5.5 percent. Demand for the new Cayenne sport-utility vehicle soared.
First-half net income rose to 118 million euros ($150 million) from 102 million euros a year ago, the company said in a statement to the Frankfurt stock exchange. Analysts surveyed by Bloomberg had expected net income of 134.5 million euros.
``The market had very high expectations for earnings,'' said Michael Rachor, who helps manage $57 billion in assets at Activest Investment GmbH in Munich and owns Porsche shares. ``The numbers today really didn't meet those anticipations.''
Chief Executive Officer Wendelin Wiedeking has said he aims to sell 30,000 Cayennes in fiscal 2004, the model's first full year of production. Porsche expects to sell about 75,000 vehicles this year, with earnings rising for a 10th year in a row.
Sales of the 911-model sports car fell 26 percent to 10,250 vehicles and those of the Boxster fell 44 percent to 5,250 cars. Sales of the Cayenne rose to 16,890 vehicles from 1,484 units, making up about half of Stuttgart, Germany-based Porsche's sales in the six months ending Jan. 31. Porsche sold 66,803 vehicles in the fiscal year ended July 31.
Rising Revenue
Preliminary figures for the fiscal first-half show revenue rising 28 percent to 2.82 billion euros from 2.2 billion euros a year earlier.
Analysts may have overestimated how much Porsche would earn in the first half because they underestimated how much it cost to bring a new vehicle like the Cayenne to market, said Manfred Ayasse, a company spokesman, in an interview at the company's annual meeting today in Leipzig, Germany.
Porsche also had research and development expenses in the first half on models to replace the aging 911 and Boxster, Ayasse said. He declined to provide specific figures on the marketing or investment costs.
``Weather permitting, we expect to maintain the positive development in spite of much adversity,'' Wiedeking said at the shareholders' meeting in Leipzig, where Porsche makes the Cayenne. "We'll do all we can to make net income look a bit better.''
Cayenne Sales
Demand for the Cayenne, which has a starting price of 47,600 euros in Germany, has more than offset the decline in sales of the aging 911 and Boxster sports cars. Customers have to wait as long as a year for delivery of the new SUV.
Orders in Germany in December were ``outstandingly good,'' Wiedeking said, without providing details.
The Cayenne competes against DaimlerChrysler AG's Mercedes M-Class and Bayerische Motoren Werke AG's X5 as well as Ford Motor Co.'s Land Rover. General Motors Corp. makes the Cadillac Escalade SUV and Toyota Motor Co. manufacturers the Lexus LX 470.
``It's good to see that the company is still expecting growth this year,'' said Albrecht Denninghoff, an analyst at HVB Group in Munich which has a ``buy'' rating on the stock. ``There's still plenty of momentum.''
Wiedeking said he is ``optimistic'' about a global economic recovery, adding that recent reforms in Germany provide a good chance for an improvement in the company's domestic market. He also called for revision of Germany's federal governmental system.
First-half net income rose to 118 million euros ($150 million) from 102 million euros a year ago, the company said in a statement to the Frankfurt stock exchange. Analysts surveyed by Bloomberg had expected net income of 134.5 million euros.
``The market had very high expectations for earnings,'' said Michael Rachor, who helps manage $57 billion in assets at Activest Investment GmbH in Munich and owns Porsche shares. ``The numbers today really didn't meet those anticipations.''
Chief Executive Officer Wendelin Wiedeking has said he aims to sell 30,000 Cayennes in fiscal 2004, the model's first full year of production. Porsche expects to sell about 75,000 vehicles this year, with earnings rising for a 10th year in a row.
Sales of the 911-model sports car fell 26 percent to 10,250 vehicles and those of the Boxster fell 44 percent to 5,250 cars. Sales of the Cayenne rose to 16,890 vehicles from 1,484 units, making up about half of Stuttgart, Germany-based Porsche's sales in the six months ending Jan. 31. Porsche sold 66,803 vehicles in the fiscal year ended July 31.
Rising Revenue
Preliminary figures for the fiscal first-half show revenue rising 28 percent to 2.82 billion euros from 2.2 billion euros a year earlier.
Analysts may have overestimated how much Porsche would earn in the first half because they underestimated how much it cost to bring a new vehicle like the Cayenne to market, said Manfred Ayasse, a company spokesman, in an interview at the company's annual meeting today in Leipzig, Germany.
Porsche also had research and development expenses in the first half on models to replace the aging 911 and Boxster, Ayasse said. He declined to provide specific figures on the marketing or investment costs.
``Weather permitting, we expect to maintain the positive development in spite of much adversity,'' Wiedeking said at the shareholders' meeting in Leipzig, where Porsche makes the Cayenne. "We'll do all we can to make net income look a bit better.''
Cayenne Sales
Demand for the Cayenne, which has a starting price of 47,600 euros in Germany, has more than offset the decline in sales of the aging 911 and Boxster sports cars. Customers have to wait as long as a year for delivery of the new SUV.
Orders in Germany in December were ``outstandingly good,'' Wiedeking said, without providing details.
The Cayenne competes against DaimlerChrysler AG's Mercedes M-Class and Bayerische Motoren Werke AG's X5 as well as Ford Motor Co.'s Land Rover. General Motors Corp. makes the Cadillac Escalade SUV and Toyota Motor Co. manufacturers the Lexus LX 470.
``It's good to see that the company is still expecting growth this year,'' said Albrecht Denninghoff, an analyst at HVB Group in Munich which has a ``buy'' rating on the stock. ``There's still plenty of momentum.''
Wiedeking said he is ``optimistic'' about a global economic recovery, adding that recent reforms in Germany provide a good chance for an improvement in the company's domestic market. He also called for revision of Germany's federal governmental system.
01-24-2004, 07:48 PM
#25
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Originally posted by gavriil
Boxster sales down by 44% !!! Holy moly...what a bleeding...
Boxster sales down by 44% !!! Holy moly...what a bleeding...
04-25-2005, 10:31 AM
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Porsche cars selling well currently
Porsche sports cars roar; warm weather, tight days supply lead to robust sales - - By DIANA T. KURYLKO | Automotive News - - Source: Autoweek
Porsche Cars North America Inc.'s sports cars are in hot demand as the company approaches the prime season for cars that don't sell well when snow is falling.
On April 1, Porsche had only a 19-day supply of the new 911 Carrera, which went on sale last fall, and 46 days of the second-generation Boxster, which reached dealerships in January.
"All Porsches are very scarce," says Robert Snodgrass, owner of Brumos Porsche in Jacksonville, Fla. "We have less than a 15-day supply. The sports cars are hot as a pistol."
Michael Bartsch, COO of Porsche Cars North America, says the 911 is scarcest in Sun Belt states such as Florida and California, where dealers have less than 30 days of cars.
Porsche expects a sales increase of 8 percent to 10 percent from 2004 to 2005, Bartsch says. Total sales in 2004 were 31,473 units.
Porsche won't predict sales for individual models - particularly because it limits exports to the United States to keep demand keen.
Porsche's lean stocks reflect its new target of having only 45 days supply of cars in the United States, Bartsch says. As of April 1, the automaker reported a 41-day supply.
911 sales soar
U.S. sales of the 911 were 1,744 in the first quarter of 2005, up 123 percent from a year earlier.
The 911 is available in three variants, including the convertible now being launched. Bartsch says the 911 is hot because of its design.
Porsche deviated too much from the traditional design of the 911 with the previous model known as the 996, he says.
"We had gone a little soft in the appearance," Bartsch says. "The new 911 picks up more of the DNA and lineage to the Carrera GT."
The Carrera GT is a limited-edition supercar that sells for about $440,000. The entry 911 Carrera is $70,065, including destination.
Boxster is 2nd hit
The second-generation Boxster is Porsche's second hit of the quarter - despite its launch in the cold month of January. In the first three months, Boxster U.S. sales were 1,752 units, up 85.8 percent from the year-ago period.
The entry Boxster costs $44,595, including shipping.
The Boxster competes with roadsters such as the Mercedes-Benz SLK, which was redesigned last fall and showed an increase of 225.3 percent for the first quarter. Sales for the quarter were 3,113 units. The BMW Z4, on the other hand, was down 23 percent in the first three months, with sales of 1,909.
Overall, Porsche sold 7,219 vehicles in the first quarter, a 4.1 percent jump from the year-ago period.
The Cayenne SUV was Porsche's sore spot. U.S. sales were 3,093 units, down 23.3 percent from the first quarter of 2004.
Bartsch says Porsche brought too many Cayennes into the United States in the last months of 2004.
On April 1, Porsche had only a 19-day supply of the new 911 Carrera, which went on sale last fall, and 46 days of the second-generation Boxster, which reached dealerships in January.
"All Porsches are very scarce," says Robert Snodgrass, owner of Brumos Porsche in Jacksonville, Fla. "We have less than a 15-day supply. The sports cars are hot as a pistol."
Michael Bartsch, COO of Porsche Cars North America, says the 911 is scarcest in Sun Belt states such as Florida and California, where dealers have less than 30 days of cars.
Porsche expects a sales increase of 8 percent to 10 percent from 2004 to 2005, Bartsch says. Total sales in 2004 were 31,473 units.
Porsche won't predict sales for individual models - particularly because it limits exports to the United States to keep demand keen.
Porsche's lean stocks reflect its new target of having only 45 days supply of cars in the United States, Bartsch says. As of April 1, the automaker reported a 41-day supply.
911 sales soar
U.S. sales of the 911 were 1,744 in the first quarter of 2005, up 123 percent from a year earlier.
The 911 is available in three variants, including the convertible now being launched. Bartsch says the 911 is hot because of its design.
Porsche deviated too much from the traditional design of the 911 with the previous model known as the 996, he says.
"We had gone a little soft in the appearance," Bartsch says. "The new 911 picks up more of the DNA and lineage to the Carrera GT."
The Carrera GT is a limited-edition supercar that sells for about $440,000. The entry 911 Carrera is $70,065, including destination.
Boxster is 2nd hit
The second-generation Boxster is Porsche's second hit of the quarter - despite its launch in the cold month of January. In the first three months, Boxster U.S. sales were 1,752 units, up 85.8 percent from the year-ago period.
The entry Boxster costs $44,595, including shipping.
The Boxster competes with roadsters such as the Mercedes-Benz SLK, which was redesigned last fall and showed an increase of 225.3 percent for the first quarter. Sales for the quarter were 3,113 units. The BMW Z4, on the other hand, was down 23 percent in the first three months, with sales of 1,909.
Overall, Porsche sold 7,219 vehicles in the first quarter, a 4.1 percent jump from the year-ago period.
The Cayenne SUV was Porsche's sore spot. U.S. sales were 3,093 units, down 23.3 percent from the first quarter of 2004.
Bartsch says Porsche brought too many Cayennes into the United States in the last months of 2004.
04-25-2005, 10:33 AM
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Porsche won't predict sales for individual models - particularly because it limits exports to the United States to keep demand keen.
04-26-2005, 09:09 PM
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The 997 seems to be more accepted by the oldschool aircooled guys. I think we'll see more 993's on the market as some porsche enthusiusts trade up to the 997 
04-26-2005, 11:48 PM
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Porsche is incredible, I love the spirit. Porsche dealers wanted to push back the 997, as the 996 was still selling okay.
But its tiring seeing car makers say results are up with a new car. IT BETTER BE. I'd rather compare say, teh 1998 996 sales to the 2005 997 sales, 1st year to 1st year.
But its tiring seeing car makers say results are up with a new car. IT BETTER BE. I'd rather compare say, teh 1998 996 sales to the 2005 997 sales, 1st year to 1st year.
04-26-2005, 11:55 PM
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Originally Posted by cob3683
I will own a 911 within a few years. After driving a Carrera 4S 2 years ago there is absolutely nothing that compares to it at that price range.
That's what my boss bought for his wife last year.
So why dont you elaborate on the above. How did it drive?
04-27-2005, 09:55 AM
#32
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Originally Posted by gavriil
That's what my boss bought for his wife last year.
So why dont you elaborate on the above. How did it drive?
So why dont you elaborate on the above. How did it drive?
As far as handling goes, I have never driven anything better. I've driven some awesome "twisty" cars (M3, C6 Z51, F355, C5 ZO6) and I was shocked to find the C4S better than all of them. The car is so good at everything and it's the only car that I have ever driven that really makes the driver feel part of the car.
The one downside of the car was the interior. The base model sucks. Lots of cheap plastic and minimal ammenities for $80,000. Granted it is a sports car, but if I were to get one I would need to add about $22,000 worth of options to get it the way I would want. The Bose stereo wasn't bad, but for $2,000 I could go aftermarket for something better.
Basically, I don't think there is a better car out there under $110,000.
04-27-2005, 10:43 AM
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Originally Posted by cob3683
Basically, I don't think there is a better car out there under $110,000.
The Z06 at $65k give or take is going to take the prize.
Porsche wise, the only future model that will be able remotely touch the Z06 will cost at least $120k (if not more).
Porsche builds nice cars, but are a tad overpriced for what you get.
05-20-2005, 03:41 PM
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Porsche to hike car prices in June
Porsche to hike car prices in June - - Reuters / May 20, 2005 - - Source: Automotive News
FRANKFURT -- Porsche will raise prices in all markets for specific models by up to 2.8 percent this year due to strong demand for its lineup, the German luxury car maker said on Friday.
Starting June 1, Porsche will charge 2.8 percent more for the Cayenne S offroader, although customers will continue to pay the same amount for the Cayenne base version and the Cayenne Turbo.
Two months later, the price for the entry-level Boxster will rise by 0.5 percent and for the more powerful Boxster S by 1.8 percent.
The next-generation 911 sports cars, also known as the 997, will also cost more starting Aug. 1. Buyers will have to add on 2 percent to the current base price to get their hands on a 997-generation 911.
The news further demonstrates that while most other carmakers need to resort to incentives to sell their products, Porsche's iconic image helps it to improve its pricing power even in the midst of a difficult market.
This comes despite Wednesday's news that its quality continued to be rated among the worst in the industry according to a J.D. Power survey.
Porsche's poor ranking, 32 out of 36 surveyed brands, remains linked to complaints from U.S. buyers relating to its Cayenne SUV.
A spokesman for Porsche said late on Thursday that customers were unhappy with the Cayenne's harder suspension compared to other rivals and had also reported problems with its radio remote control functions, which are now being analyzed.
Starting June 1, Porsche will charge 2.8 percent more for the Cayenne S offroader, although customers will continue to pay the same amount for the Cayenne base version and the Cayenne Turbo.
Two months later, the price for the entry-level Boxster will rise by 0.5 percent and for the more powerful Boxster S by 1.8 percent.
The next-generation 911 sports cars, also known as the 997, will also cost more starting Aug. 1. Buyers will have to add on 2 percent to the current base price to get their hands on a 997-generation 911.
The news further demonstrates that while most other carmakers need to resort to incentives to sell their products, Porsche's iconic image helps it to improve its pricing power even in the midst of a difficult market.
This comes despite Wednesday's news that its quality continued to be rated among the worst in the industry according to a J.D. Power survey.
Porsche's poor ranking, 32 out of 36 surveyed brands, remains linked to complaints from U.S. buyers relating to its Cayenne SUV.
A spokesman for Porsche said late on Thursday that customers were unhappy with the Cayenne's harder suspension compared to other rivals and had also reported problems with its radio remote control functions, which are now being analyzed.
11-24-2006, 11:18 AM
#37
Senior Moderator
Porsche wants to change Bugatti's direction...
From Leftlanenews...
Porsche CEO Wendelin Wiedeking is using his company's large stake in Volkswagen to pressure the company into changing plans for its Bugatti brand, according to the latest issue of Britain's CAR magazine.
As widely reported in the automotive press, the automaker loses money on every $1.3 million Veyron it sells. With the Veyron program not expected to turn a profit any time soon, rumors began circulating about a possible entry-level Bugatti roadster, and possibly even a more modestly priced sedan.
Unfortunately, sister brands Lamborghini and Bentley are strongly opposed to VW allowing Bugatti to enter their territory. What's more, Porsche has concerns of its own about Bugatti moving downmarket.
Accordingly, Porsche has suggested VW transform Bugatti into a coachbuilding business, creating one-off $4,000,000 super cars. While it's unclear if the company will go that far, there is mounting pressure both to achieve profitability, and not step on any toes.
As widely reported in the automotive press, the automaker loses money on every $1.3 million Veyron it sells. With the Veyron program not expected to turn a profit any time soon, rumors began circulating about a possible entry-level Bugatti roadster, and possibly even a more modestly priced sedan.
Unfortunately, sister brands Lamborghini and Bentley are strongly opposed to VW allowing Bugatti to enter their territory. What's more, Porsche has concerns of its own about Bugatti moving downmarket.
Accordingly, Porsche has suggested VW transform Bugatti into a coachbuilding business, creating one-off $4,000,000 super cars. While it's unclear if the company will go that far, there is mounting pressure both to achieve profitability, and not step on any toes.
11-24-2006, 11:59 AM
#38
Senior Moderator
buncha scared bitches... wtf. let the ppl build what they want... geezus.
Profitability - what a concept!
11-24-2006, 01:41 PM
#40
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Originally Posted by srika
buncha scared bitches... wtf. let the ppl build what they want... geezus.
Agree. No one takes chances on anymore to build something great.