Market Conditions, is Porsche in Big Time Trouble?

[Wayne 962]

Okay, I'm sure we've all seen the recent 30-40% drop in used Porsche prices in the past month or so. 996s are now selling for under $40K, when their sale price was $80K 2 years ago.

Is this a terrible indicator of a bad market for Porsche to be releasing the Cayenne? Reaction from current Porsche owners can at best be described as 'lukewarm.' Boxster sales appear to be down - not sure about 996 sales.

How are sales of the BMW X5? That's probably the closest competitor to the Porsche SUV...

???

-Wayne

[AFJuvat]

I don't think they are in real trouble. The people I know that work for the company say times are pretty good - there is a waiting list for the Cayenne.

It was mentioned that several people did back out of their GT2's though.

As far as the price drop - I think that can be expected up to a point - Look at the 928 - they went for $75K+ and now you would be hard pressed to give them away. The people who really are Porsche fans tend to like the older **cough**air cooled**cough** cars. With the economy the way it is right now, I think people are just holding onto their money - there just isn't a demand for a late model watercooled 911.

my 2¢

AFJuvat

[Bobboloo]

With Butzi's return to the company it may suggest the family may be a little worried about the present direction of the company.

The 996 and more so the Boxter have been very successful but they have invested alot back into the company building the Liepzig plant recently. I hope they stay on top of their bread and butter (Boxter and 996) because it seems BMW is hot on their heels to grab a market share.

I think they might have done better to go the other direction. By that I mean build a less expensive bare bones sport car like the 914 or the original Speedster. They need a Gen X car in other words. Grab some of that rice market.

Bobby

[CJFusco]

See the 944 Forum thread about the 2005 "948"

[kendapau]

Porsche has indicated (and mags have published) figures showing that 4 years of production is sold out - that's over 80,000 of them. They have deposits for that many. breakeven is 5,000 per year.

[Robotechnology]

Hello all, I am the internet manager for a top 10 in the nation Porsche franchise--we feel basically that Porsche used car values declines and the deep discounting by Porsche dealers on new--is caused by the economic climate and NOT the product. We too are sold out for at least 3 months of our incoming Cayennes. Most of the super rich still spend, spend, and spend but, those of us in the middle to upper middle class, have watched our nest eggs quickly wash away into the ocean faster than the spanish oil spill going on right now, and as a result are not buying that Boxster or C2 coupe we've had our eye on for a year. No matter what, Porsche (the company itself) knows what they are doing, and will always be okay from now on. Anybody that can charge $1,500 for power seats in an $79K car has to know what they're doing don't you think

[Deeks]

I'm a bit worried about the timing of the Cayenne.

Number 1 :
It seems that Porsche has finally released the Cayenne about 3/4 years late - missing out on a lot of sales to BMW and Mercedes.

Number 2 :
It seems that with the world entering the depths of economic recession, and the possibility of the situation getting even worse (with a double dipped recession), and with the probability of Bush and Blair going to war in the Middle East seems a recipe for rocketing oil prices. Remember what happened to Porsche in the early 70's due to the Arab Israeli War ?

Oil prices up, demand for gas guzzling cars (eg. Cayenne with 10-15mpg) down. If oil prices were to shoot up, then cars like the Cayenne would be the first to suffer.....


Let's hope Porsche carries on going strong !!!

[RANDY P]

http://www.pistonheads.com/truth/default.asp?storyId=6008

Opening paragraph is interesting. Sorry if someone else has already gone here.

rjp

[tshih]

Deeks,
The 1970's is a great example of Porsche bucking the trend towards mundane humdrum fuel economy cars when they brought out the 911 Turbo in limited quantities (500 expected to sell but in reality had to wait-list 1500!). The truth about any desirable product is if you build it and the world wants it the total produced and sold will be successful. The Cayenne was conceived and planned to be sold to the neophyte Porsche image lusting car buyer. In this case an SUV lusting American car buyer! Bing! and the Survey Says-that person who would buy a Cayenne doesn't give a rat's ass about fuel economy, altruistic principles regarding waste of resources, price of gas, or other rational things which the traditional 911-914-356 owners care about when considering Porsche ownership.

[Moneyguy1]

I think therein lies the quandry, and the reason there is so much derision between the owners of Porsche cars and the concept of the Cayenne. It is not a case of whether the vehicle is a good one or not, or whether the build quality is high, it is a simple one of attitude. Certainly, most Porsche vehicles do not get the best of mileage, but most are not driven on a daily basis either. Additionally, a Porsche car involved in an accident gives the folks in the other vehicle a "fighting chance" at surviving while a 2.5+ ton vehicle does not. An SUV is also expected to serve as a primary source of transport for many buyers, and therefore utilizes more resources on a continual basis. If the owners/users of such vehicles have an attitude that whatever they want is their right, then the image of Porsche in the eyes of the public becomes even more skewed to that of the "difference between a Porsche and a porcupine" question.

Just one man's opinion

Cheers!!

Bob S.

[Wayne 962]

Wow, that PistonHead article is full of a lot of crap. First of all, the Boxster came out in the 90's, not the 80's. Secondly, Mercedes has been building taxi cabs in Europe for decades. What's with those comments about BMW? The seem to be doing everything right. The Z8 is marginally better than walking? What a bunch of hooey!

-Wayne

[Titanium_Pipe]

Porsche sales are up and financialy they are in reallly good shape. Relax.