Porsche had a bad quarter...

[RDMcG]

.....China leading the drop ( WSJ yesterday)

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[blueline]

I would add the excessive push to electrify now, rather than gradually, has taken its toll too but the company doesn't want to publicize that. Porsche probably doesn't want to poke the Eurocrat bears by suggesting that the market and buyers should decide what type of vehicle they'd like to buy.

Some of the sales fall off has been brought on by Euroland mandates for electrification and some by other sometimes dubious requirements such as new cybersecurity software rules that have impacted older Porsche models such as the ICE Macans and Cayman/Boxsters with their older, somewhat creaky software.

And then there's this from WSJ today - "Why China Keeps Making More Cars Than It Needs". There is no doubt that the Chinese are attempting to dominate world-wide production of electric vehicle manufacturing. They'd like nothing better than to put a lot of non-Chinese automakers out of business or to at least crush their sales to a state of irrelevancy. That is having an impact on all automakers including Porsche.

From WSJ today, April 28, 2024:

"China has a long history of auto overcapacity, with more than 100 domestic brands churning out more vehicles than the country’s drivers buy each year."

"Beijing long ago identified EVs as an industry it wants to dominate, and many local governments have competed to develop new automakers that can bring jobs."

"China currently has the capacity to produce some 40 million vehicles a year, though it sells only around 22 million cars domestically, according to capacity data from Shanghai-based strategy firm Automobility and sales figures from the China Passenger Car Association."

https://www.wsj.com/business/autos/why- ... _permalink

Meanwhile, China's state controlled electric car ambitions (they control the manufacturers too) are fraught with hypocrisy. To power their electric needs, China is building new coal power plants at a furious pace. Countless articles outlining that fact are everywhere. This from The Guardian late last year: "World’s biggest carbon emitter approving equivalent of two new coal plants a week, analysis shows."

[Stormy_Monday]

Wonder if the Porsche board have discussed opening an operation in the US

[blueline]

Wonder if the Porsche board have discussed opening an operation in the US

I was wondering that too. I feel it's unlikely to ever happen, but what if the Eurocrats decided to not allow ICE manufacturing in Europe even for export at some point in the future? Surely that won't happen, right?

[ChuckSibio]

Well, I am sure all auto manufacturers are taking a hit in sales as the inflation rate continues to rise. Home mortgages, utilities, grocery's & gasoline cost continues to escalate making a large spend the secondary thought.
Money is not cheap and this report confirms that. Porsche is a niche market as it is, and when the least expensive automobile product they make is priced as it is, shouldn't be alarmed when sales numbers drop. I recently glanced at a golf bag at the dealer priced well over $500-, It's a golf bag...with a logo. Nothing special about it at all, no exotic material or leather hide making it up, just nylon in makeup. Many other similar quality bags can be had for half that price...at many other retailers.

[blueline]

Well, I am sure all auto manufacturers are taking a hit in sales as the inflation rate continues to rise. Home mortgages, utilities, grocery's & gasoline cost continues to escalate making a large spend the secondary thought.
Money is not cheap and this report confirms that. Porsche is a niche market as it is, and when the least expensive automobile product they make is priced as it is, shouldn't be alarmed when sales numbers drop. I recently glanced at a golf bag at the dealer priced well over $500-, It's a golf bag...with a logo. Nothing special about it at all, no exotic material or leather hide making it up, just nylon in makeup. Many other similar quality bags can be had for half that price...at many other retailers.

Very true. There are a lot of factors in play.

Many of us have lamented the fact that Porsche has apparently decided to forego even a half-hearted attempt at a somewhat more affordable Porsche. (I realize that's an oxymoron, but still Porsche, you could make an effort!)

[718-4Me]

I think Porsche has made a HUGE tactical error in going full bore EV with the Macan. It's their largest selling "car" and they've buried themselves by not producing EV and ICE together. EV's have reached a saturation point, people simply don't want them and I'm at the top of the list.

[blueline]

I think Porsche has made a HUGE tactical error in going full bore EV with the Macan. It's their largest selling "car" and they've buried themselves by not producing EV and ICE together. EV's have reached a saturation point, people simply don't want them and I'm at the top of the list.

As am I.

[Stormy_Monday]

Along with the EU mandated rush to EVs, I bet China was very high on their sales forecasts. Both of these seem to be a problem

[Tom]

I blame the lack of PTS allocations, and steering wheels with no center slots.