Porsche refuses to offer Incentives despite Slowing Car Sales
#1
12-02-2008, 07:58 PM
Porsche refuses to offer Incentives despite Slowing Car Sales Porsche will hang tough on no-incentive strategy
While every other automaker is counting their pennies and cowering in fear as lightning strikes outside the window, Porsche is slugging ahead through the economic tempest. With a fair amount of justification, Porsche believes its own vehicles too good for incentives; the company is steadfastly refusing to offer incentives on its Boxsters and Caymans despite a 22.8 percent nosedive in sales in October with a 118 day supply of vehicles.
Perhaps it’s not that mad. Porsche’s 2008-model 911s has sold quite steadily, and certified sales are up 20 percent this year from last.
Detlev von Platen, CEO of Porsche Cars North America said, “We will not act differently. We remember what happened 10 and 15 years ago. Acting on a short-term basis is wrong.” He refers to when Porsche did offer incentives and suffered a plunge in residual values. Being unfazed doesn’t mean a lack of caution, though. Porsche may decide to cut North America production if sales numbers don’t start pulling back up. Von Platen also stated that U.S. allocation could easily be diverted to other, more stable markets, like China, Russia, and the Middle East.
Porsche is moving forward with its four-door Panamera, and the car will roll into dealerships with no delays.
Our take? Whether Porsche is being brave or foolish is the question. Incentives, though, are clearly for lesser vehicles.
From-Automotivenews
While every other automaker is counting their pennies and cowering in fear as lightning strikes outside the window, Porsche is slugging ahead through the economic tempest. With a fair amount of justification, Porsche believes its own vehicles too good for incentives; the company is steadfastly refusing to offer incentives on its Boxsters and Caymans despite a 22.8 percent nosedive in sales in October with a 118 day supply of vehicles.
Perhaps it’s not that mad. Porsche’s 2008-model 911s has sold quite steadily, and certified sales are up 20 percent this year from last.
Detlev von Platen, CEO of Porsche Cars North America said, “We will not act differently. We remember what happened 10 and 15 years ago. Acting on a short-term basis is wrong.” He refers to when Porsche did offer incentives and suffered a plunge in residual values. Being unfazed doesn’t mean a lack of caution, though. Porsche may decide to cut North America production if sales numbers don’t start pulling back up. Von Platen also stated that U.S. allocation could easily be diverted to other, more stable markets, like China, Russia, and the Middle East.
Porsche is moving forward with its four-door Panamera, and the car will roll into dealerships with no delays.
Our take? Whether Porsche is being brave or foolish is the question. Incentives, though, are clearly for lesser vehicles.
From-Automotivenews
#2
12-02-2008, 08:17 PM
2008s are selling steadily since dealers are marking them down $15K or more... As long as I can get my next 911 for less $$, who am I to complain?
#3
12-02-2008, 08:20 PM
I just saw the following sales figures for PCNA over on RL. I think the drop off in November sales versus last year is truly extraordinary. The economic woes are clearly impacting many prospective p-car buyers (I canned my order!).
If this economic crisis persists or deepens, I would not be surprised to see Porsche start offering incentives. If you go to the Porsche site right now, you will see "Finish Strong, Year End Event!" (Porsche)
If this economic crisis persists or deepens, I would not be surprised to see Porsche start offering incentives. If you go to the Porsche site right now, you will see "Finish Strong, Year End Event!" (Porsche)
#6
12-02-2008, 08:37 PM
Dana, define "the right deal" - there are $10K off sticker deals out there on new 997s w/PDK, etc. I am specifically referring to a deal I can get on a C4S launch car (and I know Dave got his in similar fashion).
