Is VW Taking Porsche Main Stream? Will It Dilute The Brand?

We spoke with Martin Winterkorn, Volkswagen Group chief, just days after the denouement of the VW-Porsche takeover saga. Porsche had to give up its four-year attempt to take over VW and was itself taken over. Porsche CEO Wendelin Wiedeking lost his job while VW chief Martin Winterkorn got named CEO of the new combine, which will merge in 2011. And shortly after Wiedeking departed, German prosecutors raided his office and others in an investigation of possible market manipulation.
Winterkorn was, as expected, in expansionist mood. How many cars might Porsche build a year? "There's no limit," he said. Is 150,000 possible? "Why not?

He advocated doing this by 2012 or 2013, by entering new sectors with new models. (Porsche had sold 98,652 cars as of July.) Winterkorn later told Germany's Manager Magazin that Porsche should add three new cars, including one smaller than the Boxster.
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DaHarder - 8/31/2009 2:36:07 AM

+7 Boost

At this point, Porsche might well be in (potential) danger of eroding its former claim to exclusivity, as evidenced by the growing number of pre-owned 911s (996) going for under 25k, Boxsters for under 12k, and Cayennes for near 20k in my area. I'd prefer they return to their days of engineering (near) exotic sports/GT vehicles that were rarely seen, rather than see them become common.

SpicyMikey - 8/31/2009 8:30:44 AM

+3 Boost

I expressed that thought myself in another thread but got flamed. But then again, you said it much much better. Porsche has always been niche brand. Then they start venturing into SUV's and now sedan. Soon possibly sub $40k cars that are in the "everyman" price range?. That's fine if they want to play the BMW game, but they better improve costs and add more value then, otherwise, they will damage the brand by losing the one distinction they have to justify being overpriced; exclusivity.

ThierryHenry14 - 8/31/2009 9:08:52 AM

+2 Boost

two years ago, I was proud to say that I am in the exclusive club of Porsche owners (albeit, I still consider the model I own to be very exclusive), but I think two years from now, I the club may not be anywhere as exclusive.

Personally, I have always believed Porsche to be an enthusiast's brand, requiring special taste, driving skills, and a special following in order to understand and master the brand. The Cayanne was a cash cow, the panamera is a expansion product. With this "sub-40K" vehicle in the works, the brand will be accessible to all the wannabes and posers. While I congratulate the potential buyers of the sub-boxster roadsters, I simply do not believe they share the same passion about the marquee as many past Porsche owners have (though I am generalizing, I believe this to be true!).

VW taking Porsche will certainly dilute the image and accessibility of the Brand.

Runamukk - 8/31/2009 3:28:56 AM

+2 Boost

My opinion is as long as the performance/engineering doesn't suffer, whats wrong with more people enjoying this fine marque?

WorldofLuxury - 8/31/2009 3:32:41 AM

+2 Boost

Meh... business. hehe

Whelan - 8/31/2009 9:54:43 AM

+2 Boost

Porsche is already Mainstream as it is more common than most other exotic, luxo-sports cars. I see them as much as I see BMWs and Mercedes. I could count a few dozen each day in my commute from Carrera 4s, GT3, Boxtser, Cayman, rich soccer mom Cayennes and Turbo S.

inspirion7 - 8/31/2009 10:28:42 AM

+2 Boost

Then you must live in Los Angeles or Florida. Go to midland USA and find them. I remember in my past life, I sold a Saturn SKY Turbo to a customer in Kansas and he ordered the car site unseen with 20" wheels etc. When the car arrived in this small town, he was the focus for some time. That was a car that was less than a Boxster. When we began to see Porsche around and they become common place, the brand does loose some of its uniqueness because they are limited. I see Lexus, BMW and Mercedes everywhere and don't turn my head even at ones that are tricked out. No appeal in that sense because anyone can own one now.

Whelan - 8/31/2009 1:21:25 PM

+1 Boost

Hey inspirion, not Florida or LA. I live in Southwestern CT, near NYC. Not sounding spoiled just my thoughts on what I see. Porsches around here are pretty common, still nice to look at, but common. For me I still only have my 2005 Toyota Matrix XR AWD.

inspirion7 - 8/31/2009 3:37:58 PM

+1 Boost

Point taken.

ThierryHenry14 - 8/31/2009 4:40:08 PM

+2 Boost

Yes, Whelan, you are absolutely correct, I live in New Canaan and Porsches are more common than some other "economical" marquee. It is just because Fairfield/Westchester County are among the richest in the nation, that is why it seems as though they are common, but if you go outside of those two counties, with few exceptions, they are quite rare still...

veyron1001 - 8/31/2009 9:57:29 AM

-6 Boost

If you want to know how to dilute a brand, look no further than GM.

JUGNU - 8/31/2009 10:24:27 AM

+1 Boost

I think it will be tough competing MB and BMW. Porsche will have to reduce/justify the high prices of their models as well as the optional items and services. Also DESIGN is very important. Till now all Porsche models are of same 911 styling theme, Panamera and Cayenne compare to competitors are very odd and ugly looking. So except 911 range, all other models would have to be design competitive.

JUGNU

dhkss2002 - 8/31/2009 12:42:08 PM

+2 Boost

For such an elitist, you should be able to at least spell the word 'Cayenne' Thierry.

quizz - 8/31/2009 2:36:55 PM

+4 Boost

People people people, look at the economic realities of owning and operating a "niche sports luxury" brand. If it wasn't for "affordable" models like the Boxster, Porsche would have filed BK in the 90's. Remember that in order to maintain its independence, Porsche did 3 things:
1. Develop Boxster
2. Make a cheaper 911 engine (weaker and a completely different engine than the Turbo engine)
3. Overcharge for options

This worked quite well.

LauderdaleDriver - 9/3/2009 7:40:46 PM

+1 Boost

I think Porsche has been charging absurdly for options from day one. The Boxter is hardly the first "cheap" Porsche, but perhaps the best low priced model they have ever put on the market. The 912, 914, and 924/944 were not exactly resounding hits.

It will be interesting to see what VW does with Porsches styling, which is either "iconic," or stuck in a rut, depending on your perspective.

They need to move forward, or risk being a Harley Davidson or Buick, and having near death experiences, much like their customer base.

LuxuryFan - 8/31/2009 7:36:20 PM

+1 Boost

Are they not mainstream currently?