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Old 07-05-2008, 04:25 PM
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Mega,

Your understainding of the current US economic conditions, futures and Porsches sales strategies are incomplete and inaccurate. I work inside Automotive channels and sell many products that are used by car dealerships, so I have my finger squarely on the pulse of car dealership sales trends. Let me tell you what I'm seeing.

Ford, GM and Chrysler are hurting big time. They are struggling to simply get the car sold and they are all looking at greater than 30% sales losses from this time last year. So the a car like the new Ford focus that you're talking about may fall on deaf ears.

Honda and Toyota are seeing hot and cold sales. Why? Becayse they offer fuel efficient cars and hybrids. So they are doing 'OK'. Some flat, some with small deficits from last year, some with small gains.

Cars like Mercedes, Porsche, BMW, and up are selling incredibly well. In fact, my Porsche dealership just broke a sales record last month, in the middle of very difficult economic times.

So how is that possible? I'll tell you my thoughts. The wealthy are not feeling the squeeze of the current economic climate like the middle and lower class are. Let's face it, the currect economic struggles are being caused by inflation, gas prices and the unwinding of the credit mess. Upper class people are not effected by these things. They didn't borrow money with a ridiculously stupid mortgage and they make so much money that a 30% increase in gasoline cost and for a gallon of milk isn't going to make any difference. The cost of gas and milk is insignificant to them. They aren't living to the edge of their paychecks like the middle class.

Also, you need to realize that Porsche doesn't rely on the US market like they used to. The emerging markets like China and Russia are towing the line and Porsche has already taken US allocations and redirected them to those markets.

So, I hate to spread sunshine on your previously rained out parade, but all of your assumptions are dead wrong and Porsche doesn't need to do anything to keep their sales moving forward. They don't compete with Ford, never will. If someone wants a Focus instead, then they are welcome to buy one. Porsche won't miss that sale.
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