Porsche North America shrinks as luxury segment lapses
Alysha Webb
Automotive News Europe
February 18, 2008 - 12:01 am ET
ENLARGE
One Porsche dealer says the Cayenne SUV has been particularly difficult to keep in stock.
SAN FRANCISCO — Porsche Cars North America Inc. is shrinking its supply in response to a slowdown in the luxury segment.
The move may help Porsche avoid oversupply, but it also may exacerbate one of Porsche dealers' big concerns: not having enough product to sell.
"We have seen since October and November last year there is some pressure on the luxury segment," said Peter Schwarzenbauer, CEO of Porsche Cars North America. "We will adjust supply for at least the first half of the year so we can avoid a mild recession."
In 2007, Porsche sold more than 34,000 units in North America, he said.
"If we can get close to that, or even slightly below, I will be really happy," said Schwarzenbauer.
Highlights
• Sales slowdown in luxury segment
• Enough product to sell?
• Porsche's first sedan
Dealers are of two minds about the shrinking supply. Don Hicks, owner of Porsche of Colorado Springs in Aurora, Colo., said his main concern is the lack of units to sell.
Getting enough Cayenne SUVs has been especially difficult, Hicks said.
In contrast, Charles Burton, president of Carlsen Porsche of Redwood City, Calif., and a member of the Porsche Dealer Board of Regents, supports the production slowdown.
"I'd rather they manage inventory properly," Burton said.
Porsche already has cut production twice in recent weeks, he added.
Porsche is priming the market with several new products. Dealers are "extremely happy" with the recently launched Cayenne GTS SUV, said Schwarzenbauer. A new Boxster convertible, the RS60, is "on the horizon," he said.
The most eagerly anticipated new product is the full-sized Panamera sedan. It will be Porsche's first entry into the segment, and is scheduled to arrive in September 2009. It will seat four people, said Schwarzenbauer.
Said Peter Sonnen, a Porsche dealer in Marin County in Northern California: "I can't wait for the Panamera."
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