Some business considerations

I'm wondering about Porsche's emerging strategy, which does not seem to me to be tenable for a company that is not General Motors. It seems that one part of the strategy is to have a four-pronged sports car focus -- 718, Boxster/Cayman, 911, supercar lines, with multiple models in each category -- plus sedans, plus SUVs. This range is pretty much described in the industry term "automobiles." The only thing missing is econocars and trucks. I'm not in the business, it strikes me that that is too broad a range for a company known for focusing on sports cars and wanting to stay there

2001 Base, purchased in 2004, replaced engine at 130K+, RIP 2017

The Boxster and Cayenne saved Porsche. The Macan is sold out til next April.

Porsche has broadened its line to include very sporting bread and butter models, while still offering true sports cars at a fraction of Ferrari prices.

I drove a 2014 Panamera a couple weeks ago, and was thoroughly impressed. It was, quite simply, the best all-round luxury car I've ever driven. It drives like a Porsche.

I know nothing about Porsche's bottom line, but I do regard its product offerings as outstanding. I don't think it's lost sight of its heritage, and that's vitally important.

BMW, on the other hand, has moved some considerable distance from its heritage, although it's probably very much in tune with the market. It still offers some very good sports sedans in its mix, but its lines include a great number of vehicles which are not the ultimate driving machine.

Quote
Roger987
The Boxster and Cayenne saved Porsche. The Macan is sold out til next April.

Porsche has broadened its line to include very sporting bread and butter models, while still offering true sports cars at a fraction of Ferrari prices.

I drove a 2014 Panamera a couple weeks ago, and was thoroughly impressed. It was, quite simply, the best all-round luxury car I've ever driven. It drives like a Porsche.

I know nothing about Porsche's bottom line, but I do regard its product offerings as outstanding. I don't think it's lost sight of its heritage, and that's vitally important.

BMW, on the other hand, has moved some considerable distance from its heritage, although it's probably very much in tune with the market. It still offers some very good sports sedans in its mix, but its lines include a great number of vehicles which are not the ultimate driving machine.

To underscore the differences between these two marques, check out this test between the base Cayman and the BMW M235i:
[www.youtube.com]

Despite being way down on HP and TQ, the Cayman managed to get around the test track faster than the BMW. As you look at the how the driver handles both cars, you immediately know what is going on--sports car vs. sporty sedan--and if you're driving on the track there is a world of difference: Less weight, better brakes, better balance--all translating into better handling.

The price difference--if I have my conversions correct is about $8K, and that is no small amount. Additionally, the BMW has a bit more equipment on it and it does have rear seat (if that matters).
Having said that, the performance difference between these two cars couldn't be more striking.

All that proliferation would be a problem if:
a) costs scaled linearly with models, and/or
b) they subdivided a fixed market of Porsche customers

Neither is true however. As noted, each new model expands Porsche's sales, either to new customers or it makes people two Porsche families (or 3)

On the second, Porsche applies a "common platform strategy" as do all major automakers. Boxster and Cayman, for instance, are essentially the same car. furthermore, the Pepper and the what-ever-it-is share platforms with AUDIs & VWs. Plus, they share a very few engine architectures across models - the flat oens and the vee ones.

In truth, the trucks keep them viable (or is it "kept" as they are now VW), and able to invest in sports cars.

Witness the 718/Boxster phenomenon. If reports are to be believed, the mid-cycle Boxster will go upmarket - above the Cayman (yielding big profits, and re-positioning it as a real Porsche), while the 718 sells to, well, me.

So your question is good, but i think the devil is in the details, and so far Porsche is playing it hand well.

Profitability, by the way is excellent. Porsche has among the highest margins int he industry - or did when they still reported separately from VWAG.

Back to fixing my RAIC ( redundant array of inexpensive cars)

Grant

Grant

gee-lenahan-at-gee-mail-dot-com

Oddly, this 718 may be one of the smartest moves they could have pulled. I think a lot of Porsche owners really want to be as upmarket as possible and care about things like infotainment centers (radios we used to call them in manual-choke days), but a lot of us really want a pure driver and since I bought my Boxster in 2004, this is the first time I've heard about a new Porsche product that I really want to buy and might be able to afford.

I'm about to give up my previous dream of a 964 convertible in '90s Drug Dealer Red.

2001 Base, purchased in 2004, replaced engine at 130K+, RIP 2017

... no extra crap.
Like the manual convertible top.
If it were true that it will be available with 350+ HP it would be great.
But I think this car will only be offered with up to 2.0L, while the Boxster and Cayman will get the 2.5L.
We'll just have to wait and see.
Happy Waiting,
Pedro

Pedro Bonilla
1998 Boxster 986 - 311,000+ miles: [www.PedrosGarage.com]
PCA National Club Racing Scrutineer - PCA National HPDE Instructor - PCA Technical Committee (Boxster/Cayman)

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Racecar spelled backwards is Racecar

"Racing is life. Anything before or after is just waiting" ... Steve McQueen as Michael Delaney in "LeMans"

"If you wait, all that happens is that you get older"... Mario Andretti

"Being second is to be the first of the ones who lose" ... Ayrton Senna

I agree with Pedro - the 718 sounds very appealing. Focus on the pure driving experience and dispense with the fluff (and weight!)