sullivas

After I read the article below I had to think about what Porsche stands for, and I have to come to the conclusion that money and prestige are their motivating factors for building cars. It isn't about the buyers. After spending a considerable chunk of cash on what I thought was going to be a great worry-free performance car with, gosh, real German Engineering, I have to think to myself everytime I drive it, is today going to be the day? With no admission of guilt or support to M96 owners for faulty engineering Porsche just moves forward with newer models sweeping the mistakes under the rug. And if an older model goes boom, well, hey just buy a newer model, we're makin' more! How can an owner feel loyalty to a brand that basically screws the buyer? And damned be he with no warranty. Thanks for reading.

Porsche Said to Target Record Sales Next Year on 911 Revamp
(Updates with shares in sixth paragraph, comment from sales chief in eighth, detail on models in last.)
Oct. 13 (Bloomberg) -- Porsche AG, the maker of the Cayenne sport-utility vehicle, plans to sell a record 140,000 cars next year on demand for the next generation of the 911 and Boxster models, a person with knowledge of the matter said.
The Stuttgart, Germany-based carmaker aims to increase 2012 deliveries after selling 120,000 autos this year, the person said, declining to be identified discussing internal goals. Porsche, which sold 97,000 vehicles last year, said previously it would deliver “more than” 100,000 cars in 2011.
“The goal seems ambitious given the current economic framework but it's achievable,” said Daniel Schwarz, a Frankfurt-based Commerzbank AG analyst who recommends buying the stock. “Porsche is performing very solidly in key markets. A lot depends on how the new 911 will fare and how quickly they'll bring derivatives to market.”
Porsche, which aims to combine with Volkswagen, will begin selling the revamped version of the iconic 911 this December and plans to offer an updated Boxster model in the first half of 2012, the person said. Porsche and rival German luxury-car makers have thus far been immune to Europe's debt crisis.
September Sales Rise
Bayerische Motoren Werke AG, Daimler AG's Mercedes-Benz and Volkswagen AG's Audi all posted September sales advances and are targeting record deliveries in 2011. Porsche said yesterday that sales last month surged 38 percent to 10,560 vehicles on demand for the Cayenne SUV. Nine-month deliveries are up 31 percent.
Porsche dropped as much as 2.7 percent to 37.50 euros and was down 1.6 percent at 1:38 p.m. in Frankfurt trading, valuing the carmaker at 11.6 billion euros ($16 billion).
Porsche plans to increase production of the Cayenne, its best-selling model, by between 10 percent and 20 percent starting in January by adding a third shift at a factory in Leipzig, Germany, where the vehicle is produced. Porsche currently makes about 220 cars a day at the plant and has been unable to keep up with demand for the model.
“Even if economies happen to cool down somewhat, I'm very confident that we have a chance to keep growing next year thanks to our global presence and current product portfolio,” Porsche sales chief Bernhard Maier said in a Sept. 13 interview at the Frankfurt auto show.
Backed by VW, Porsche aims to double sales to at least 200,000 cars and SUVs by 2018. The carmaker will add a compact SUV and a limited series of the 918 Spyder hybrid sports car by 2013. Porsche's current models include 911, Boxster/Cayman, Panamera and Cayenne. Porsche may also develop a supercar positioned higher than the 237,600-euro 911 GT2 RS, its most expensive 911, Maier said.
--Editors: Chad Thomas, Heather Harris

Fin Fever

so what's the problem? what about the caviar and the bombs?

SARGEPUG

Nothing wrong w/ this and you think any company on this planet isn't in it for the money!!!! However, at least we get a phenominal piece of engineering for it!

Domer911

Making money isn't so much WHY companies are in business as it is HOW companies remain in business.

The idiots who decry "corporate America" for its profit motives really tickle me.

Making a profit is HOW a company is in business. Show me a company that cannot make a consistent profit, and I will show you a company that cannot sustain itself, cannot employ people, and has absolutely nothing to offer the economy in which it operates.

Graygoose997

I'm curious as to what car with an original 70 k and up price tag, would the OP be comfortable owning, post warranty?

sullivas

That is not a relevant question. This is a post about known defects and a manufacturer's refusal to acknowledge them.

AYHSMB

This is not correct. *how* a company stays in business is making enough revenue to match its operating cost. At that point the corporation's profit is zero, but it may be paying good salaries to lots of employees, making great products and reinvesting lots of revenue in improving those profits.

Something has dramatically changed in the last 20 years in that most corporations are now focused mainly on maximizing their *profit* which is then paid out as dividends, or in maximizing their stock valuation.

Corporations maximizing their stock valuation helps neither consumers nor the employees. It only helps the shareholders.

Unfortunately, the stock market is very short sighted, so doing things like maximizing the profit on current car sales even if you **** off long term buyers is a popular move. Similarly, mergers, break-ups, layoffs, etc that don't really help the company function any better but help the stock valuation are very popular moves.

Domer911

with all due respect, you could use a lesson in economics. what goes around, comes around, and generates all kinds of economic activity along the way--not the least of which is value for older folks whose retirement accounts are generating returns, in part, because the companies they invest in are NOT making zero profit.

Vjgtrybno1

Companies exist because folks put their $$ at risk through purchasing equity. Profit maximization to shareholders should be the goal of all such companies. However, some companies focus on the short term because some fool analyst focuses on the short term. Some treat customers like crap because it increases profits in the short run. The truly great companies look to maximize their value in the long run. They recognize that analysts come and go and that treating customers and employees fairly will lead to profit maximization.

Mark Harris

Oh joy.....the Wharton MBA's are posting a lesson in economics.

Spiffyjiff

crap, i stumbled on the wrong link again. i was looking for rennlist but got WSJ instead.

utkinpol

>older model goes boom, well, hey just buy a newer model,

i already spoke of that in same way - cars get so complex and not easy to maintain that it may be a bad idea to own one with no warranty coverage. still, current base and then CPO programs allow long enough time frame for ownership. as of what makes a corporation profitable - others already stated the obvious, any busines`s first goal is to make money, all the rest is secondary.

Fahrer

When the 993 was the 911 in production, the car appealed to a limited segment of the market. Porsche needed to grow their business so the car had to repositioned to have broader appeal ( more luxurious). They also needed to add other models lieke SUVs in order to survive.

Let's face it, the number of folks ( mostly older) who see the 911 as THE Porsche, are becoming less a less important part of the customer base. The Porsche brand (coming from the 911) will increasingly be applied to sedans, SUVs, hatchbacks...........whatever. And, as always with an acquisition, the goodwill paid for the target must somehow be re-gained ( although this generally fails)....... get more mileage out of the acquired brand to cover what you over-paid for.

CBnAT

A modern vehicle is an extremely difficult and complex piece of machinery. Pretty much any vehicle these days will last 100,000 miles if properly maintained, and some may times that. Imagine the amount of stress that places on each individual part of your car. I don't think I could do a better job than Porsche does. Is there room for improvement? Sure. Ask yourself this though, if you build a perfect product how will you ever sell replacement units? All items in the marketplace now are designed to fail at some point so that they are replaced, from your cell phone to light bulbs to cars and homes.

I do agree that Porsche seems to react slowly to problems and I wish that was different. Anyone here could start their own car company to build a better product. You wouldn't be first, think Lamborghini or Tucker. Heck you could take your 100k and build a 100% custom kit car, would that fit the bill?

blk on blk

Not sure why people think that machines made by man, and robot are foolproof. Some are better than others, but eventually they all break. My Porsche experience tp date has been that these cars break less than pretty much every other car i have owned. ymmv.