Likemystoppie?

Fresh back from a little trip back to New England-

My GM informed me that PAG is reducing PRODCUTION another 25%- that means they'll barely produce 55% of 2008's total production numbers.



In addition; Market Reps are telling dealers that they're taking cars away. Over 50 cars are going bu-bye in our market alone.


That means that it's begining. The small - fry dealers will be left to starve and will go under. Stronger dealers will swallow up the competition. Inventories will be much more controlled. Dealer -swaps- for a lot of cars will be a day dream.


Discounting as you've all enjoyed and seen will be winding down.


Smoke'm if you got'em.

Likemystoppie?

Ps. This isn't a 'scare tactic'. It's reality.


Just like Best Buy is killing the competition; eventually- Even Best Buy will start raising prices to recoup any loss in profit over the last year.

That's all I'm saying.

am722

Hope mine isn't one of them...

mdrums

Glad I got mine back in September! I am good now for the next 5 years or so.

NTI 911E

You and I have a different perspective from most here, but I am glad to hear it! Wish more manufacturers would follow suit. Every single car company has way too much supply at their dealers. Dealerships shouldn't be forced to lose money to move a brand new current model year car, which happens at more places than you might expect (not Porsche, speaking to other brands that I have friends working for).

f4 plt

Porsche, especially with the 911 platform, over the years has been very good about always having less supply than demand. That philosophy has allowed them to control pricing and thus residual value which really benefits us all. They may have gotten caught a little short on the 2008 models with the downturn but it looks like they have quickly moved in to correct that. Just drove from Texas to North Carolina to spend Christmas and noticed at every dealer of any type along the way had lots overflowing with cars. Smartest thing for the big three is to shutdown production for a month or so ... but they won't. Glad my C2S is produced, as a sold order, and less than a week from the port of Houston. I agree with the other post that discounts on new 997.2 will diminish as the supply does.

Likemystoppie?

It's not Aaron- No worries, I'm not going to pull a "Rusnak" on ya!

Even some Porsche sales are a loss. But you do what you must to trim the inventory.


A few more months and I can start eating normally again.

NTI 911E

I was more referring to certain high-volume japanese car dealerships that I have friends at where more than 25% of their deals are net losers for the dealership. That is frightening.

And I know what you mean... I've been on an Easy Mac diet for a while now

Likemystoppie?

Mmmm. Easy mac......


Quality right there.

PogueMoHone

^

Most Dealers could probably care less about next year's production, they are more than likely focused on this year and minimizing their tax positions.

Some might read your posts as attempts to influence current buyers, and induce them to make offers above invoice. Or an effort to drum demand. Not me, of course!

I believe nobody knows where this economy is going; snap back, precipitous fall or something in between. One thing is for sure, there will be more opinions than correct answers; and nobody has next years strategy figured out (imo).

If I were in the market for a car, I would be bargaining hard, starting (and staying) way under invoice. The Dealers took their pound of flesh in the good times, so hopefully they saved for a rainy day. Now the "good" customers they burned are going to stick it to them, fair is fair. Market pricing works on the way down as well.

It never ceases to amaze how Dealers always try and transfer problems (not enough cars, too many cars etc.) back to the manufacturer.

In a way you have worked against yourself on this forum by feeding the negative news about used car values; that in turn could only go one way and add to the current chill in new cars sales. Your peers and salesmen must love you.

Weave

Pgue - I think the "snap back" scenario can be safely discounted, while no one really knows anything, I reckon and L shaped recession is where we are.

Leader

While no one has a crystal ball, the suits that run Porsche are very savvy guys. Adjusting "the flow in the pipeline" makes good business sense in an economy completely unfocused on buying new, luxury sports cars.
For everyone talking "economic rebound," just remember this is the beginning of the downturn, not the middle. 2009 is not going to be a time of rapid economic recovery - at least I don't think so .
In every aspect of retail business (including many car dealers), a lot of places won't be around for Christmas 2009. And, sadly, that's probably the way it needs to be to start us back up the hill again.

MJones

Interesting tale from your GM...and his sources are?
Allocations changing??
Taking allocations away?
Taking Pool cars away?

From a PAG Press Release 10/01/08:
Nevertheless, it is difficult in the present economic situation to make reliable predictions about trends in the current fiscal year as a whole. Porsche keeps a very close eye on developments in the global markets and will continue to stay true to its strategy of producing one automobile less, rather than stockpiling one. Due to its variable production, Porsche sees itself in a position to adapt its production numbers flexibly.

997, esq

Of course, PCNA can drastically cut supply and still have excess supply, if demand is sufficiently slack. It's true that nobody knows about what's next, but I'm feeling real pessimistic about the next 24 mos. Agree with Pogue about bargaining strategy.

Edgy01

As a Porsche follower and owner since 1974 I can cite the times where there has been a downturn in Porsche buying over the decades. This is about the third time in all those years. And yet, Porsche always seems to bounce back. They are a credit to their industry in being able to manage effectively. With their present CEO I'm sure they will do fine. I remember 1975 when it was the first time I ever saw the price of a subsequent model year DROP instead of the usual growth. While this will put their goal of 100,000 cars a year on hold for awhile, they are certainly postured to assume production when things turn around. I think we can all agree that it's been smart for Porsche to diversify their line from merely sports cars to include the Cayenne so that when it's less popular to buy a Porsche sports car they can make up volume with the SUV. Such will be the case with the Panamera in time. What we'll see is simply a lot less MY09 cars out and around the marketplace (as used) down the road, much like we see few 928s from their lean years,--they just didn't manufacture that many. I can only say that I'm glad that I had the opportunity to buy new a MY06 car which I consider one of their best designs in decades.