Bright Times Ahead for Porsche?
Well, no doubt it’s “high times” at Porsche these days. Long profitable in North America, successful in FOREX and Lean Manufacturing, developing product lines, high profit margins, and now a large share of VW (31%).
Just how rosy is the picture at Porsche?
In the 2nd half of 2007, Porsche started shipping additional 997-series models including the GT3 RS and the GT2. In addition they refreshed much of the Cayenne SUV line, and even added a special edition GTS model. In all this will double the Cayenne sales to more than 20,000 units in fiscal first half 2008, ending in January.
As a result, Porsche predicts revenue will rise 14.2 per cent, while volume sales are expected to rise 18.7 per cent to 46,600 vehicles worldwide. That includes newly developed markets in Russia and China.
The future of the US market remains shaky. Recent reports and Federal Reserve rate cuts of 100 basis points indicate that the US economy on the skids. That could be some weak sales in 2008, and crucially, 2009 as the new Panamera four-door sports sedan comes to market. Even if downturn does occur, Porsche’s first half growth of 11.4 per cent to 16,200 cars, should be enough to keep them in the black. Also, keep an eye out for the new Nissan GTR in the next year. Sales of that similarly priced vehicle, with a newly found presence in the US, should be a direct competitor for the 911 Carrera and Carrera S.
We don’t have expectations, but if you figure that Porsche makes 5000 Panameras in the first year, half of which go to the USA, at an average of $100,000 each, that’s an extra $250 million in revenue in the US market, so the Panamera is no laughing matter for the company. We can’t wait to drive it!
Incidentally, we should have a clearer picture when VW announces its results and Porsche provides a fiscal update in the March timeframe.