FLAWED STRATEGY? Porsche North America CEO Claims: Our Entry Model Is Our Pre-Owned Program

Sounds like Roger Smith then GM CEO in the 1980's who said something to the effect that folks were better off buying a used Buick as an entry level car than one of those cheap Japanese transportation machines. We know where that went.

It's not like Buick is the same as Porsche.

Many Europe-worshippers would find that as blasphemy.

It all depends what "entry level" means to the brand. WHat's the entry-level Rolls Royce, Ferrari, Lamborghini, etc. The entry-level Porsche is the Boxster, and Porsche is doing rather nicely with that approach.

Take a look at GM for an example of trying to please everyone. They have economy cars, middle-class cars, premium vehicles (Cadillac), and sports cars.

You don't have to cover all price points to be successful and sustainably profitable. You just need a market that can make you that way.

And this is why they have been expanding their offerings with a second SUV and added a 4 door sedan in order to stay profitable. 911s and Caymans are not selling as well as they would have wanted too. Yes they are great cars but "yes, there are many substitutes nowadays".
Wait until EU completely implodes and the German unions start asking for more share of the profits, then they will slap a Porsche badge on a GTI and call it their entry level car.

I agree. There indeed are many substitutes, like how Lexus LS performs a lot better than Porsche Panamera, and Lexus RC-F beats Porsche 911 Turbo S in terms of performance as well.

On one hand it sounds logical to offer an entry level Porsche as it is a way into the Porsche ownership family. Further it is a natural progression to move up a model so that you can continue to buy more and more expensive models of the brand. Further let's face it Mercedes, BMW, and Audi are doing just that. Other car makes like Lincoln are considering it, perhaps even Lexus. However all of those marquees sell in much higher volume then does Porsche even on their luxury end items. Porsche is still a relatively small volume car maker. They make money on their Cayenne, Panamera, and Macan. They do not generate enough profit on their 911,Cayman, Boxster because these cars do not sell in enough volume. The other 3 models do. Before VAG bought Porsche the Cayenne s what kept Porsche not only afloat but profitable.The so calle smaller Pajan sedan that they have been toying around with would be generate both more volume and more profit then an entry level sportscar. As you know there was going to be VW mid engine roadster that was to be shared by Porsche and Audi. But that fell through. I understand why Porsche would hold off on a stand alone sub Boxster sportscar.

The problem is market size for two seat and near two seat cars has been shrinking since 2008, at the same time, we have seen many new entries into the market further diluting the pie.

Just browsing the US sales data, the average cars of this type sold from 2002 thru 2007 was ~115K cars per year, since then, the average has dropped to ~65K cars per year.

More cars to buy choose from and fewer buyers doesn't make a strong case for an entry level Porsche.

Typical Porsche idiocy. A used Porsche is a reliability nightmare and the repairs are stupidly expensive.

Porsche should NOT be trying to be the German Ferrari. It should have a STRONG series of base/entry level offerings:

922 / mid-engined inline 4 cylinder (VW engine) "MR2" for $30K base
933 / turbo version for $35K base
944 / front engined inline 4 RWD "GT86" $35K base
955 / turbo version $40K base
966 / V6 (VR6) 944 $40K base

then

Boxster/Cayman/911/Panamera/Macan/Cayenne

With Porsche being stupid expensive, and suffering major depreciation, the returned lease and used P cars are a natural to market.

Porsche CPO cars LANGUISH because no one wants them

I figured this out a few years ago...by simply overpricing the car you can initially sell it for a high profit or lease it and then sell it a few years later - and you make money several times on the same VIN.

"let them eat cake!"

Mat-With your strategy Porsche would no longer exist.

With my strategy they would have triple the sales in NA.

Sounds fine with me. A 4yo 911 or a new 5 series? No contest.