Autoextremist rant on porsche
12-05-2003, 12:16 PM
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Autoextremist rant on porsche
This week's Column in autoextremist:
We've talked about the free fall of Porsche for some time now, and while the troops in Zuffenhausen - led by Wendelin Wiedeking (he's a genius, just ask him) - are high-fiving and back-slapping each other over their current profitability numbers due to their self-proclaimed "brilliant" strategy of bringing out an SUV as their bread-and-butter vehicle - to carry them through the occasional downturns of the sports car market - their very essence is slowly but surely slipping away from them. Porsche 911 and Boxster sales are now officially in the dumper and have been for some time - which Porsche claims is due to the poor economic conditions here in the U.S. and around the world. But my contention is that Porsche is placing the blame on the wrong reason. Porsche's predicament is due, in large part, to their insatiable greed. Because of Porsche's nonsensical, ill-fated strategy of cranking out Boxsters as if they were popcorn to boost their short-term profitability, they have managed to dilute the brand's image, removing any of the specialness that was once such a part of the Porsche name. Which is laughable, when you really think about it, because Porsche did it once before during its infamous 924 chapter. Granted, the Boxster is a vastly superior car, but the net-net effect of cranking out too many units is still the same in the end.
Porsche management has proved that arrogance, talking to one's self and selective rationalization is a powerful potion that can blind an organization to the reality of its situation. While Porsche executives are busy insisting that because of cars like the Carrera GT and 911 GT-3, all is well with their newly formed dependence on the Cayenne, and that they're better than ever as a company, they will wake up one day to find that Cayenne sales have cooled. And then what? Will they mount a huge marketing/advertising effort designed to remind everyone in the world that they're once again a premier maker of sports cars? That's not going to work. Why? For one thing, the competition is getting too tough. GM is undercutting Porsche at the more affordable end with the superb new Corvette C6, which will offer better performance in its standard trim (400H.P.) than 911s costing $40,000 to $50,000 more. And Porsche won't have an answer for it - at least not an answer that will come in for less than $100,000, because Porsche has pissed away five years on developing the Cayenne, instead of working on a true, back-to-basics sports car that they so badly need. The Boxster was to be that car, remember? But because of Porsche's usurious pricing policies, the Boxster stopped being affordable literally five minutes after it was introduced.
Make no mistake about this: Porsche has alienated its hardcore enthusiast constituency with the Cayenne. These are the true-blue enthusiasts - people who have been spreading the gospel according to Porsche for years. But now these same Porsche loyalists don't even recognize the company anymore. It's no longer a manufacturer of lithe, light sports cars that can trace its roots back to its founder - a man who retains legendary status in the automotive world to this day. And it's no longer a sports car manufacturer that derives inspiration for its street cars from its exploits on the race track - and the lessons gleaned from competing in some of the most famous races in the world (because of the time and money it took to develop Cayenne, Porsche has not competed for the overall win at Le Mans for five years, and they've recently announced that they wouldn't be there in the near future, either).
No, Porsche has now dumbed itself down to the point that it has become just another car company, hell bent on becoming a dreaded "full-line manufacturer" - a company whose latest effort is an SUV powered by a VW V-6 engine, of all things. And whose next effort is rumored to be a four-door sedan based on VW Group's Phaeton/Bentley Continental GT/Audi A8 platform. I guess it would be more accurate to say that Porsche has become just another truck company - as they're now officially producing and selling more trucks than cars.
(just passing it on, don't shoot the messenger)
We've talked about the free fall of Porsche for some time now, and while the troops in Zuffenhausen - led by Wendelin Wiedeking (he's a genius, just ask him) - are high-fiving and back-slapping each other over their current profitability numbers due to their self-proclaimed "brilliant" strategy of bringing out an SUV as their bread-and-butter vehicle - to carry them through the occasional downturns of the sports car market - their very essence is slowly but surely slipping away from them. Porsche 911 and Boxster sales are now officially in the dumper and have been for some time - which Porsche claims is due to the poor economic conditions here in the U.S. and around the world. But my contention is that Porsche is placing the blame on the wrong reason. Porsche's predicament is due, in large part, to their insatiable greed. Because of Porsche's nonsensical, ill-fated strategy of cranking out Boxsters as if they were popcorn to boost their short-term profitability, they have managed to dilute the brand's image, removing any of the specialness that was once such a part of the Porsche name. Which is laughable, when you really think about it, because Porsche did it once before during its infamous 924 chapter. Granted, the Boxster is a vastly superior car, but the net-net effect of cranking out too many units is still the same in the end.
Porsche management has proved that arrogance, talking to one's self and selective rationalization is a powerful potion that can blind an organization to the reality of its situation. While Porsche executives are busy insisting that because of cars like the Carrera GT and 911 GT-3, all is well with their newly formed dependence on the Cayenne, and that they're better than ever as a company, they will wake up one day to find that Cayenne sales have cooled. And then what? Will they mount a huge marketing/advertising effort designed to remind everyone in the world that they're once again a premier maker of sports cars? That's not going to work. Why? For one thing, the competition is getting too tough. GM is undercutting Porsche at the more affordable end with the superb new Corvette C6, which will offer better performance in its standard trim (400H.P.) than 911s costing $40,000 to $50,000 more. And Porsche won't have an answer for it - at least not an answer that will come in for less than $100,000, because Porsche has pissed away five years on developing the Cayenne, instead of working on a true, back-to-basics sports car that they so badly need. The Boxster was to be that car, remember? But because of Porsche's usurious pricing policies, the Boxster stopped being affordable literally five minutes after it was introduced.
Make no mistake about this: Porsche has alienated its hardcore enthusiast constituency with the Cayenne. These are the true-blue enthusiasts - people who have been spreading the gospel according to Porsche for years. But now these same Porsche loyalists don't even recognize the company anymore. It's no longer a manufacturer of lithe, light sports cars that can trace its roots back to its founder - a man who retains legendary status in the automotive world to this day. And it's no longer a sports car manufacturer that derives inspiration for its street cars from its exploits on the race track - and the lessons gleaned from competing in some of the most famous races in the world (because of the time and money it took to develop Cayenne, Porsche has not competed for the overall win at Le Mans for five years, and they've recently announced that they wouldn't be there in the near future, either).
No, Porsche has now dumbed itself down to the point that it has become just another car company, hell bent on becoming a dreaded "full-line manufacturer" - a company whose latest effort is an SUV powered by a VW V-6 engine, of all things. And whose next effort is rumored to be a four-door sedan based on VW Group's Phaeton/Bentley Continental GT/Audi A8 platform. I guess it would be more accurate to say that Porsche has become just another truck company - as they're now officially producing and selling more trucks than cars.
(just passing it on, don't shoot the messenger)
12-05-2003, 12:38 PM
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R.I.P. Dr. Ing. h.c. F. Porsche AG!
The only hope is that there are enough people on the inside at Porsche who feel the same way.
If they really needed SUV profits, they could have bought an existing brand, or launched a new brand rather than using the Porsche brand's exclusivity (which now no longer exists)
The only hope is that there are enough people on the inside at Porsche who feel the same way.
If they really needed SUV profits, they could have bought an existing brand, or launched a new brand rather than using the Porsche brand's exclusivity (which now no longer exists)
12-05-2003, 02:50 PM
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AMEN, brother.
Greg D,
Excellently written and well reasoned post.
Sadly, it is difficult to argue with your observations. You are on target.
I NEVER thought I would ever consider owning a Corvette. If GM has done the homework on a real sports car that I think they have on the forthcoming C6 model, it will warrant a very serious look. I don't believe the 998 will be worth the wait, though it will have some killer cup holders by then.
Greg D,
Excellently written and well reasoned post.
Sadly, it is difficult to argue with your observations. You are on target.
I NEVER thought I would ever consider owning a Corvette. If GM has done the homework on a real sports car that I think they have on the forthcoming C6 model, it will warrant a very serious look. I don't believe the 998 will be worth the wait, though it will have some killer cup holders by then.
12-05-2003, 03:19 PM
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This trend for brand dilution is almost ubiquitous nowadays. Make a reputation with a high-end brand, then cash in on the mass market profits by selling larger volumes down-market. Remember Yamaha audio equipment, Mercedes automobiles, and innumerable other examples.
Porsche has managed to a large extent to avoid it until recently, despite occasional zigs in that direction (my beloved 914 would be such a zig) but this time it may be permanent. Thats not to say they don't still make good vehicles, but it is a sea change that many will not respond well to.
Chip
Porsche has managed to a large extent to avoid it until recently, despite occasional zigs in that direction (my beloved 914 would be such a zig) but this time it may be permanent. Thats not to say they don't still make good vehicles, but it is a sea change that many will not respond well to.
Chip
12-05-2003, 04:01 PM
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I could not agree more. What frosted me was the pride that they had in the profit margin they were getting on the 996. All that meant to me was they were selling a cheap car for more than it was worth because people remembered the reputation of the "old" Porsche. Living off of you old reputation is a sure way to kill it.
12-05-2003, 04:06 PM
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Just to clarify - I did not write this.. does it sound like a Bozo article to you ? ;-) It's this weeks' rant at www.Autoextremist.com
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12-05-2003, 11:09 PM
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Wow. I keep a jealousy scale available when I read -- for pieces I say "I wish I'd written that" -- and this is now on the list. The future is full of understeer and Audi-like interiors, I'm afraid. J
12-06-2003, 01:40 AM
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Brand Dilution
Greg, you're right on target. They seem to be letting the sports car heritage become a cash cow. It's similar to what Mercedes did in buying Chrysler and what BMW did in buying Land Rover: pigs in a poke. It would be interesting to see a cash flow analysis of what Porsche have sunk into the Cayenne and how long it will be, if ever, before they see any meaningful return on that product; no doubt long after the cachet of the name has been diluted and cars like the FX45 keep raising the stakes in what will ultimately become just another commodity market. Meanwhile, fast evolving race technology and toughening competitors keep raising the stakes on a company that seems to be losing its sense of identity.
12-06-2003, 03:17 AM
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Please, have you ever taken a ride in a Corvette with 30K on the clock? The interior finish sucks and they rattle and shake and are a peice of c**p. More HP means they will fall apart that much quicker.
And didn't the 993 arrive after the 914 and 924 were long gone?
Survivors will learn from their mistakes, even if they keep repeating them only in different forms over a period of time.
All is not lost, keep hope alive!
And didn't the 993 arrive after the 914 and 924 were long gone?
Survivors will learn from their mistakes, even if they keep repeating them only in different forms over a period of time.
All is not lost, keep hope alive!
12-06-2003, 06:12 AM
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Originally posted by RMEllis
I could not agree more. What frosted me was the pride that they had in the profit margin they were getting on the 996. All that meant to me was they were selling a cheap car for more than it was worth because people remembered the reputation of the "old" Porsche. Living off of you old reputation is a sure way to kill it.
I could not agree more. What frosted me was the pride that they had in the profit margin they were getting on the 996. All that meant to me was they were selling a cheap car for more than it was worth because people remembered the reputation of the "old" Porsche. Living off of you old reputation is a sure way to kill it.
12-06-2003, 07:27 AM
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Originally posted by fbfisher
Please, have you ever taken a ride in a Corvette with 30K on the clock? The interior finish sucks and they rattle and shake and are a peice of c**p. More HP means they will fall apart that much quicker.
Please, have you ever taken a ride in a Corvette with 30K on the clock? The interior finish sucks and they rattle and shake and are a peice of c**p. More HP means they will fall apart that much quicker.
The new Vette's are very different animals than those of just a few years ago (at least the ZO6 iterations). I can't believe it's manufactured by GM. I think his car, on most tracks, would be very competitive (probably faster) than a stock 993. I don't blame anyone for driving and loving these cars.
Having said that, I wouldn't trade a new one for my used 993.
I love the overall driving experience, totally connected feeling, and looks of my car much better.
12-06-2003, 09:30 AM
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[QUOTE]Originally posted by fbfisher
[B]Please, have you ever taken a ride in a Corvette with 30K on the clock? The interior finish sucks and they rattle and shake and are a peice of c**p. More HP means they will fall apart that much quicker.
Yep, last month I traded in an 01 Z06 with 50,000 miles on it. NO RATTLES or SQUEAKS. Suspension was ROCK SOLID at 150 mph. down the back straight at R/A !!!
I had just finished two days at Road Atlanta/Panoz open track... in group A. The Vette was still competitive on that track! This year I saw 11 weekends at places like... VIR/Viper Days, Road Atlanta (9 track days)... Roebling Road, and CMP... the 01 stood up very well!!!
I... Traded that baby in on a new 04... Z06...
Sure hope to Cya at the track!!!
[B]Please, have you ever taken a ride in a Corvette with 30K on the clock? The interior finish sucks and they rattle and shake and are a peice of c**p. More HP means they will fall apart that much quicker.
Yep, last month I traded in an 01 Z06 with 50,000 miles on it. NO RATTLES or SQUEAKS. Suspension was ROCK SOLID at 150 mph. down the back straight at R/A !!! I had just finished two days at Road Atlanta/Panoz open track... in group A. The Vette was still competitive on that track! This year I saw 11 weekends at places like... VIR/Viper Days, Road Atlanta (9 track days)... Roebling Road, and CMP... the 01 stood up very well!!! I... Traded that baby in on a new 04... Z06... Sure hope to Cya at the track!!!