‘Stupid’ Incentives Imperil U.S. Industry, Porsche Chief Warns

The U.S. auto industry is trapped in a death spiral due to its dependence on retail incentives, warns Peter Schwarzenbauer, president and CEO of Porsche Cars North America Inc.
Auto makers must honor the basic business model of supply and demand to ensure long-term growth and profitability, he says.

“Our biggest concern, besides the general economic situation, is always – from our point of view – this stupid incentive war,” he tells Ward’s in an exclusive interview. “This is destroying the car market in general.
“Everybody who is using heavy incentives (is) destroying the future of the industry – if it continues,” he says. “Unless we see major changes here, philosophical changes, this will be damaging for all of us.”

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PlanoA4 - 9/8/2006 3:45:18 PM

+2 Boost

The problem is, you have to make a car someone wants to buy. They are having a hard time at any cost.

audiot - 9/8/2006 6:14:46 PM

0 Boost

I would like Porsche to start offering these incentives.

I95SPEEDINGTICKETS - 9/8/2006 6:59:18 PM

+1 Boost

auidiot

Take a deep breath !!
Hold it !!

Keep Holding !!

Keep Holding !!

woood - 9/8/2006 10:48:49 PM

+1 Boost

VW doesn't own Porsche completely. I think Porsche is just concerned about a healthy US automotive market for everyone to coexist and not kill each other in order for all carmakers to survive.

kart1 - 9/9/2006 2:30:05 AM

+2 Boost

VW offers 0.0% to 3.9% and also Porsche owns like 20% of VAG. Plus it is definitely a bad idea to have a company like Porsche to offer incentives. It is like, almost - not even close but what the hell, asking for incentives on the Ferrari Enzo.

silverarrow2 - 9/10/2006 11:18:03 PM

+1 Boost

Well, when you concider how much people are being charged for a VW cloned Porshe (Cayenne) or Audi it may not be a bad thing to force them to give some incentives.

elviososa - 9/11/2006 1:37:02 AM

+1 Boost

LOL...agree ^^^^^