Porsche Strategic Realignment

[blueline]

Looks like the kitchen appliances are making an impact. And we scoffed

It will be interesting to see what kind of turnaround efforts will happen.

[Bill in Bama]

I agree with your assessments regarding the big picture. Add in high labor costs (esp as compared to China!) as well as extremely high energy costs and insufficient electrical capabilities, and the signs become increasingly distressing, pointing towards a very, very difficult future for Porsche. The same can be said for most German auto manufacturers with the distress extending into other German and European manufacturing as well. There will likely be casualties.

Can't agree more. Germany has incorporated the labor unions so much into their business model they are hostage to them. VW in Chattanooga didn't even try to oppose unionization because of their German mindset. That, plus their disastrous net zero climate policies have saddled them with tremendous expenses for energy and I've already mentioned labor.
Making the new ICE mid-engined car more expensive isn't going to help. Everyone calls for a cheaper "entry level Porsche " but the company says they already have one: a used Porsche. Well look at what has happened to used prices. When the 911 passed $100k for the cheapest model that was a watershed moment, most people who can now afford a new Porsche are older, or not really car people, just wealthy buyers wanting the image. Porsche will survive, but I think ftge next few years at least their sales numbers will be much lower. Their leadership has made some really bad decisions that aren't easy to reverse.

[Stormy_Monday]

I also think that part of Porsche's problem is Ferrari envy. The entry level Ferrari goes for what a Turbo S costs. And that's the top of the line. Ferrari has evolved into a luxury and life style brand with very good margins and selling fewer cars. Porsche has also been changing into a fashion accessory brand also. Not sure where all this winds up. Two car companies with really great heritage, becoming unreachable for normal car nuts. My two cents

[River19]

I agree with your assessments regarding the big picture. Add in high labor costs (esp as compared to China!) as well as extremely high energy costs and insufficient electrical capabilities, and the signs become increasingly distressing, pointing towards a very, very difficult future for Porsche. The same can be said for most German auto manufacturers with the distress extending into other German and European manufacturing as well. There will likely be casualties.

Can't agree more. Germany has incorporated the labor unions so much into their business model they are hostage to them. VW in Chattanooga didn't even try to oppose unionization because of their German mindset. That, plus their disastrous net zero climate policies have saddled them with tremendous expenses for energy and I've already mentioned labor.
Making the new ICE mid-engined car more expensive isn't going to help. Everyone calls for a cheaper "entry level Porsche " but the company says they already have one: a used Porsche. Well look at what has happened to used prices. When the 911 passed $100k for the cheapest model that was a watershed moment, most people who can now afford a new Porsche are older, or not really car people, just wealthy buyers wanting the image. Porsche will survive, but I think ftge next few years at least their sales numbers will be much lower. Their leadership has made some really bad decisions that aren't easy to reverse.

Solid points. The whole "affordable Porsche is a used Porsche" is a fair statement, however it is somewhat sad that successful but not "ultra wealthy" passionate drivers aren't necessarily going to be able to experience the latest platforms in all likelihood. I don't see a 992 dropping to a $50K used vehicle ever except in a rare heavily abused state. When I go to PCA events, the heart of those appear to be people passionate about driving and passionate about the brand and most are driving classic, or at least several year old cars. I don't see many, if any 992s ever. We see some newer Caymans for obvious reason being the slightly lower price point. Albeit our sample is small, however IMHO suggests there is a potential for passionate drivers to be priced out of Porsche eventually which to me is like cutting out the heart of the brand.

I know there are plenty of very well off car people, however I don't believe there are as many folks willing to put miles on a $250K car like they did or would their $95K or even $120K 911 when it was new years ago. I also think there is SO much tech and complication involved in the latest platforms that I would want no part of the maintenance associated with miles and use on those cars. I think without a legit "entry level" drivers car in the lineup they are headed to join the other "jewelry brands" that are used for show and a social flex rather than the driving experience. Perhaps that has always been the way, but I always felt Porsche was different than Ferrari and Lambo in that........

[RDMcG]

For me one of the things that distinguished Porsches was going to trackdays where there would be lots of them of all ages, but very few if any Ferraris or the like. Certainly the whole "buy it, store it and flip it" situation was unknown, as there was generally depreciation over time. Ferraris were supercars and Porsches were sports cars in the day.

The value of the experience for me far outweighs the financial impact of putting miles on a car. We certainly have more people who value the car for status (no different than any higher end brand), but there are still lots of hardcore enthusiasts thankfully.

Tastes do vary and status matters, eye there would be no vehicles like big Mercedes G63 SUVs with low-profile tires that make them useless for off-roading, of Porsche Cayenne Coupes that reduce the load capacity:)

Porsche will need to keep the loyalty of its customer base and the strong club culture in order to weather the coming storm.

[blueline]

A brief piece today from Hagerty Media's Larry Webster that ends with a positive and hopeful look to the future for Porsche.

"Never Stop Driving #163: Porsche’s Electric Snap Back"

https://www.hagerty.com/media/never-sto ... d568259d8a

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