Porsche Financial Health

[Stormy_Monday]

While VAG and Porsche struggle there is a lot of new product coming at premium levels from China ,Korea and Japan.

A US ban on the Chinese cars will have little effect on the global market place.

Here are just a couple among many:

https://www.pistonheads.com/gassing/top ... &t=2145983

https://www.pistonheads.com/gassing/top ... &t=2145937

A strategy to slash product will need to be accompanied by a strategy for compelling new product. The world is changing very quickly.

The compelling new product is something that I see missing every time I go into the dealer. Nothing that talks me into getting out of my Boxster GTS 4.0 and into something new.

[blueline]

A clean, elegant build of a GT3 Touring is compelling to me but not at $75k or more over an already sky-high MSRP.

This classy 2,000 mile '23 Touring that sold on BaT today was on my radar. It brought $40k over original MSRP but was nevertheless well bought by the winning bidder. One could even look at it as a very good purchase considering the equivalent 2026 model would be $100k - $125k more than what the '23 sold for today, assuming one could get an allocation.

https://bringatrailer.com/listing/2023- ... ouring-54/

[blueline]

A bit more of a detailed look from today's WSJ regarding yesterday's announcement from VW Group (VW AG), especially regarding the "byzantine" corporate structure as well as labor issues and labor costs.

"Volkswagen’s Vast Jobs Factory Is Under Threat Like Never Before"

https://www.wsj.com/business/autos/volk ... _permalink

"After decades of acquisitions under empire-building bosses who touted the benefits of scale, Volkswagen is both a carmaker itself and a holding entity for other brands—a much more knotty setup than at its global peers.

The company has never integrated the brands it bought. Even Audi, controlled by Volkswagen since 1965 and wholly owned since 2020, maintains its own management board, 20-person supervisory board and all the trappings of an independent company."

They have their work cut out, that's for sure.

Screenshot 2026-07-10 163833.jpg (59.93 KiB) Viewed 82 times

im-36493167.jpg (113.87 KiB) Viewed 82 times

Workers protest against Volkswagen’s restructuring plans at a plant in Zwickau, Germany, on Thursday. Jens Schluter/AFP/Getty Images

[Stormy_Monday]

Qatar blocks Volkswagen's Iron Dome deal with Rafael as German plant faces closure | Ctech https://share.google/7ytrfAjcfTcDzwwm0

More convoluted ownership

[RDMcG]

It is going to be a rough period for our favorite manufacturer . The 992 is beginning to age out and they will need exciting product while still executing a major turnaround.

[blueline]

WSJ is pouring it on. Another piece today from a published VW internal memo.

"Volkswagen Warns It May Need to Cut 50,000 More Jobs"

"The latest cost-cutting measures come on top of the 50,000 job cuts already negotiated with labor representatives for its namesake brand as well as key subsidiaries including Audi and Porsche."

https://www.wsj.com/business/autos/volk ... _permalink

im-58266319.jpg (171.9 KiB) Viewed 31 times

The Volkswagen plant in Zwickau, eastern Germany, is among four plants facing an uncertain future.
AFP/Getty Images

[RDMcG]

I have to wonder about the pension impact. GM went into a financial crisis when its pension obligations from a disproportionate number of retirees exceeded the active population. German pensions are typically generous and with high-paid employees there may well be a major obligation.

[Stormy_Monday]

With BMW and MB also having financial issues, I don't see the German auto industry coming back. Headcount reductions and reducing product, while necessary, alone won't save the industry.