Porsche pushing several plans in pursuit of more U.S. market share

[carreraken]

article from Aftermarket Business

Publish date: Feb 13, 2012
By: James E. Guyette

Praying for heavenly intervention to obtain a Mercedes-Benz, Janis Joplin famously lamented in the late 1960s about how “my friends all drive Porsches, I must make amends.” The singer herself tooled around town in an iconic 1965 Porsche 356C Cabriolet adorned with an eye-catching psychedelic paint job. And now it’s far more than just Janis and her friends who are buying Porsches these days.

More than 29,000 Porsche Cayennes, Panameras, 911s, Boxsters and Caymans were purchased in the U.S. last year, up 15 percent, as the Stuttgart-headquartered carmaker pursues several initiatives aimed at further pushing Porsche’s presence into the U.S. marketplace.

German-engineered upscale autos in general are growing in popularity among Americans, with Bayerische Motoren Werke – better known as BMW – topping this past year’s overall list of premium marques sold in the U.S. Nearly 248,000 BMWs and Minis were moved out of dealer showrooms and onto the streets, amounting to a 14.9 percent increase in sales over 2010’s tally.

Mercedes-Benz came in second with its highest annual sales volume in company history as it sold 264,460 vehicles here in 2011, representing a 17.5 percent growth rate. Volkswagen’s domestic volume also rose, up 26.3 percent by selling 324,400 new VWs.

“2011 represents a very positive step forward for Porsche and demonstrates the brand’s continued strength in the United States market,” says Detlev von Platen, president and CEO of Porsche Cars North America, Inc. in Atlanta.

“We are confident we will build on this momentum moving forward into the New Year with the launch of the seventh-generation 911, a new Boxster and several other new products,” he adds.

Much of Porsche’s success can be attributed to the ongoing momentum of the Cayenne SUV, according to von Platen. Sales in the U.S. were 12,978 in 2011 compared to 8,343 in 2010 – a 55.6 percent increase.

Another highlight cited by von Platen is the continued success of the 911. With new editions of 911 Carrera and Carrera S set to go on sale in the U.S. this month, the current models remain strong sellers. Annual 2011 sales of the 911 rose 4.9 percent with a volume of 6,016; 5,735 were bought in 2010.

Previously owned Porsches are also in demand as sales of company-certified used units amounted to 8,323 last year versus 7,298 sold in 2010.

Spokesman Dave Engleman tells Aftermarket Business World that while the nation’s economy may still be in a stalled state, the nameplate’s well-heeled targeted customer base and “their hard-earned money” are viewing Porsches as the perfect platform to satisfy their desires for an ultra-fine performance vehicle.

“We look at it as a value proposition, even though that sounds funny,” says Engleman, noting that Porsche’s patrons place a prime importance on possessing an exquisitely crafted motorsports classic bought within an atmosphere that caters to the über-stylish status of both the vehicles and themselves.

There are some 220 people associated with the Atlanta headquarters who are assigned to oversee parts, service, marketing and training for a nationwide network of 194 dealerships that encompass the automaker’s largest global sales sphere. “They, in turn, work to provide Porsche customers with a best-in-class experience that is in keeping with the brand’s 63-year history and leadership in the advancement of vehicle performance, safety and efficiency,” Engleman says.

Last summer Porsche introduced its Instant Intelligence initiative for smartphones, which is described as a first for the luxury auto segment in that it allows potential buyers to do more than just “kick the tires” when stopping by a dealership after hours or if they prefer to be “just looking” while in the showroom.

Each scan of a mobile tag-equipped car automatically opens a micro-website in the phone that features information specific to the exact vehicle being viewed, including videos, pertinent press reviews and the unique purr of the model’s engine. While not necessary to access the content, you can also provide contact information for fast follow-up by a sales representative.

Browsers contemplating a Porsche purchase are able to get the inside story about the offerings on display whenever it suits their busy schedules, resulting in “rich content and interactive functionality for a high performance, personalized shopping experience,” says Engleman, who reports that the system has been “quite well-received by the dealers and our customers.”

“Porsche customers enjoy both performance and technology, and are using their mobile devices to help make vehicle purchasing decisions,” explains COO Michael Bartsch, referring to a Morgan Stanley study showing that one-third of all digital information is now viewed on mobile computers, and by 2013 that number is expected to reach 50 percent.

“The dealers that have begun using mobile tags in their showrooms have noted positive feedback from their sales team as well as greater customer engagement and enthusiasm,” Bartsch notes.

“The technology affords our customers the opportunity to receive quick, up-to-the-minute information on our inventory,” says Ken Gorin, president and CEO of The Collection, a Porsche dealership in Coral Gables, Fla. “We pride ourselves in event marketing, so the ‘Silent Seller’ program has proven especially useful in translating off-site displays into in-dealership sales.”

The latest innovations include Smart Mobile for touch-screen handheld devices, with customized dealership information including available inventory, special offers and driving directions. Also new is a mobile version of the nationwide dealer locator that enables owners to find the nearest Porsche-approved service center via their smartphone.

In addition, dealers can now utilize the new SalesPad Apple iPad 2 application to instantly display and share information on a particular car while also tapping into the Car Configurater, which allows a buyer “to easily custom-design the Porsche of their dreams.” This ability to access a library of extensive model information – including a national inventory search – increases the likelihood of finding the exact vehicle a customer wants already in stock, according to Engleman.

A spring groundbreaking is scheduled for a new Porsche Cars North America headquarters at the “Aerotropolis Atlanta” development site near Hartsfield-Jackson International Airport.

“Our vision for our new U.S. corporate home is to create a bold and energizing environment where the physical elements are as memorable and moving as the Porsche driving and ownership experience,” says von Platen, the president and CEO.

Airport officials anticipate serving more than 100 million annual visitors flying in by 2015, making it the busiest in the world, “and one of the first impressions for every traveler will be a bird’s-eye view of the 26.44-acre Porsche facility,” von Platen points out.

The structure’s architect is HOK, perhaps best known for designing athletic stadiums in the U.S. The plans have “boldly and progressively captured our Porsche vision and aesthetic,” according to von Platen.

“We have designed a building with the same high-energy feel and performance as Porsche automobiles,” says Todd Bertsch, HOK’s director for the project. “Everything about this space is designed to encourage people to fall in love with the Porsche brand and automobiles.”

To allow employees and visitors to “share that passion,” the office layout will steer clear of “cubicle culture” and instead offer open, light-filled individual and shared work spaces that are ideal for collaboration and creative spark, Bertsch notes. Transparent stairwells and a central “Main Street” atrium and courtyard are to be augmented by a display of Porsche cars.

“Our new American headquarters will allow us to finally bring together all our major sales, after-sales and financial services capacities, thus making us an even stronger organization,” von Platen says. “It also sends a strong message to our dealers and our customers that we believe in the strength of the U.S. market and its future growth,” he adds.

The facility will house a workforce expected to eventually expand to 400 employees, along with a Technical Service and Training Center, plus a Customer Experience Center featuring a road course to demonstrate the performance capabilities of the company’s vehicles.

[rick-l]

I looked at the 2012 911 on Saturday. $123,000 for that 2 seat sedan? Who is going to buy that thing? Panamera .... yeah right.

[carreraken]

last part of article:

“The unparalleled nature of the Porsche ownership experience absolutely deserves an equally unique home,” says von Platen. “That is what we’ll create with our new headquarters – a concept completely new to the U.S. automotive industry and one that delivers our brand and product experience to our employees, dealers and customers alike.”

A second new Experience Center is also set for a spring groundbreaking in Carson, Calif. The purpose-built 53-acre facility and road handling course will be one of only five such sites in the world, including the original track at the Silverstone Circuit in England and locations in Leipzig, Germany and Shanghai, China.

“Helping enthusiasts feel and connect with their vehicle’s full potential through intelligent engineering has always been a part of the Porsche philosophy,” says von Platen as he describes an extensive lineup of facilities and programs that include special surfaces replicating rain, ice and snow conditions. The Ice Hill will consist of a steep slope, computer-controlled water jets and a low-friction pavement engineered to “challenge even the most experienced drivers and help them improve their real-world skills.”

Porsche’s plant in Leipzig is slated to undergo a $684.9 million expansion as the company prepares to produce its Cajun model beginning in late 2013.

The Leipzig site, currently home to 800 employees, has been producing the Cayenne since the car’s conception in 2002, and it also manufactures the four-seater Panamera. Porsche has already invested some $383 million in the plant, which has thus-far rolled more than 420,000 vehicles off the assembly line.

Production of the Cajun will bring about 1,000 additional jobs to the facility. Porsche also plans to expand its SUV lineup by adding a smaller SUV model below the Cayenne.

The carmaker is currently introducing two new cabriolet (a convertible recalling a swift type of carriage) versions of the recently unveiled seventh-generation 911 Carrera.

Like the coupe, the 2012 911 Carrera cabriolet features an innovative aluminum-steel construction with the addition of a new convertible top design that preserves the typically sleek 911 coupe roof line, the company reports. Intelligent lightweight design that includes extensive use of aluminum, magnesium and advanced high-strength steel ensures lower vehicle mass and lower fuel consumption while offering improved driving dynamics and additional comfort. As with the 911 coupe models, the new open-top editions are considerably lighter than their predecessors.

The suggested retail price tag for the 911 Carrera Cabriolet is $93,700; pricing on the 911 Carrera S Cabriolet begins at $108,000.

And Janis Joplin’s Porsche? According to the Peterson Automotive Museum, 1965 was the last year in which the 356C Cabriolet was produced, having been replaced by the 911. Yet that version is so highly regarded that more than half of the 78,000 units produced between 1949, the model’s first year, and 1965 are believed to still exist.

Joplin paid $500 to Dave Richards – a roadie for Big Brother and the Holding Co. in addition to being an ace with a spray gun – to create the truly one-of-a-kind psychedelic paint scheme. The car reverted to the singer’s younger siblings following her death in 1970. For several years it served as an around-town runabout for family errands until the vehicle’s ultimate restoration. It now resides in the Rock and Roll Hall of Fame with one of Elvis Presley’s many Cadillacs and a ZZ Top hot rod.

[pwd72s]

Originally Posted by rick-l

I looked at the 2012 911 on Saturday. $123,000 for that 2 seat sedan? Who is going to buy that thing? Panamera .... yeah right.

Well, at least you looked...

[rick-l]

I got breakfast, a cast model, a key chain and the dealer hired a pretty face to greet everybody.

[look 171]

If you build them, they will come. Just build them fat, comfy, and leather seat with a bunch of electronic crap. THey will come and buy. I am not saying they are bad cars.

[azasadny]

I STILL want a Cayman S!