An Evolution Or Revolution? Porsche To Build E-Class Competitor

At some point, a VW exec has to realize that Porsche and Audi are cannibalizing each other's sales!

I would imagine that Audi competes against BMW and Mercedes in the way of premium sedans. Their SUVs are sort of after-thoughts in terms of their brand identity, in all three cases. Porsche, unlike BMW, MB, and Audi, is best known for their sports cars, like the 911. Two seats. Two doors. Their Panamera coupe and SUVs, similarly, are after-thoughts in terms of their brand identity. I just don't see Porsche and Audi sales being interchangeable, nor cannibalizing each other.

Steve, quick, name the two best selling Porsche vehicles.

1) Cayenne
2) Panamera

Year to date those two models make up 68% of Porsche sales. The "sports cars" (Cayman, Boxster, 911) comprise the other 32%. If they keep moving downmarket with smaller and cheaper SUV's and sedans, you're going to see a further dilution of that pool. The end result is eventually Porsche will be known simply as a company that makes nice, expensive vehicles, some of which happen to be sports cars. Kind of like BMW, Audi, and Mercedes.

@JRobUSC - I couldn't agree with you more.

@JRobUSC: I don't contest the sales numbers. I just have hard time picturing the guy who drives away in the Panamera thinking "Geeze, that was pretty close. I *almost* got an A6/7/8, but ultimately, Porsche offered a better deal." I just don't see it. I see a Porsche buyer as something different than an Audi buyer, and not interchangeable. Mind you, that could just be my thinking. I don't have any data that *proves* the buyers are dissimilar. I know of no data that proves they are interchangeable, either.

@ Steve and Pondosinatra, Porsche disagrees with you. They just cancelled the "mini-Boxster and mini-Panamera" because they didn't want to dilute and devalue the Porsche brand, and they feared moving mainstream and downmarket would do just that.

http://www.thetruthaboutcars.com/2012/05/discount-porsche-canceled-again/#more-444012

@JRobUSC: The article you quote only sites Porsche's decision *NOT* to "dilute or devalue the brand" by producing a lower priced entry vehicle. It does *NOT* support the belief that Audi and Porsche buyers are interchangeable, which is the belief I am challenging.

What has gone wrong @ Porsche?

The objective of VW brands is to steal sales from both BMW and Mercedes. Period. These brands might cannibalize sales from one another but it will ultimately put a dent in Mercedes and BMW sales. At least I think this is VW Group's plan.

It's like Infiniti won't cannibalize on Mercedes sales if infiniti uses Mercedes Diesel engines. They are different customers. A Ferrari/Lamorghini guy is also not a typical Porsche guy. The main competition for these Porsche sedan's is Maserati really.

And even the Maserati Customer is not a Porsche Customer!

Porsche was always considered "The Poor Man's Ferrari" It did compete but always at a much lower price. Thing is as Porsche performance got closer and closer to Ferrari, Ferrari decided to distance themselves by going much further upmarket and charge significantly more for it's offerings.Is Porsche more diluted now. Of course. Is it becoming more and more like BMW, Audi and Mercedes. Yes it is. And had they not tried to buy VW they would still be independent. But Porsche still carries the cache of a specialty maker of high performance cars. Porsche still symbolizes "Sports Car and Sports Car Handling". So when someone is shopping for a luxury sedan and SUV and then buy a Panamera or a Cayanne they believe they are buying the sportiest sedan and SUV on the market. This is becasue it is Porsche who historically have specialized in sports cars.Mercedes, Audi, BMW etc. cannot make claim to this. Only Porsche can make claim to this.So the buyer of a Porsche car immediately has in the the back of his mind "Sports Car" even if it's Cayanne. You cannot ask for better marketing than that.