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Discussion Starter #1
...in trouble already...at least for now.

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AFX News Limited - June 3, 2003

STUTTGART, Germany (AFX) - Porsche AG said its May unit sales in the US and Canada rose 34 pct to 3,239 cars, compared with 2,418 a year ago, boosted by the off-road Cayenne model.

The company sold 1,479 Cayennes, which were introduced on the US market on March 15, while sales of sports cars - 911 and Boxster - fell 27 pct to 1,760 units from 2,418 the same month a year earlier, Porsche added.

"Against the background of the current, general weak sports cars segment, Porsche feels vindicated in its decision to secure the long term growth of the company by introducing the Cayenne as a third model," the company said.

Gabriel,
2001 CL Type S
2001 Lexus RX300 Silversport
 

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I wonder if the Cayanne canabalized their sports car market?

2003 G35 Coupe | 6-speed | Diamond Graphite/Graphite | Sirius
 

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I do like the look of the Cayenne. When I first saw the commercials for it, it didn't do much for me, but when I finally started seeing them in person, they have a nice distinct Porche look to them that is pretty interesting. Why Porche needs an SUV I'll never know... but when you compare it to the others on the market, it's not bad.

2003 G35C | 5AT | DG + Willow Leather | Nav | Premium | Performance
 

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Discussion Starter #5
And more testimonials from Porsche insiders:

I am also a top insider at a top ten Porsche dealership and agree with everything west coast Porsche guy has to say. The only thing he failed to address was THE MAJOR MISTAKE OF LAUNCHING A CAR AS A 2003 MODEL ON MARCH 15TH (e tu brute, beware the ides of march), and subsequently releasing 2004 models in April. These 2003s had the same MSRP as the 2004, but a 4 point lower lease residual. In addition, as west coast Porsche guy points out, most of these 2003 non-retail Cayenne’s were poorly colored and equipped. The ONLY way to sell a 2003 vs. a 2004 is to deeply discount it. Having to deeply discount a brand new, highly anticipated product at launch can do nothing but tarnish the image of this fine product. Not wanting to pass on deals in our market, which is overloaded with dealers who have to sell out of their market and to brokers so as to not back up with inventory, we sold many 2003 at large discounts. So many, in fact, that we have bought some inventory from some smaller dealers whose markets could not support the volume of "pool cars" they received.



The lack of air suspension should not have affected sales as much as it did, but all the auto magazine articles praised it so much in their reviews, that people felt stupid if they bought one without, when in fact it was not available on "S" for the first three months of production, and is really unnecessary unless the customer is a true off-roader (and costs over $3,000.00). The lack of larger wheels also affect initial sales. Porsche of all companies should understand how important big wheels are, especially in the US.



As the initial glut of inventory and 2003s goes away and dealers have to rely on their ongoing allocation, I fully expect inventories to stay under 60 days, and pricing will stabilize.



We have had more initial warranty repairs than we would have liked, but nothing major or out of line with other new product launches. We are also in a major northeastern city where road conditions are the worst in the country, and anything that can brake usually does.



Lastly, everyone who has test drove the Cayenne has bought one and everyone who has

bought one LOVES IT.



Unlike Mr.$12.5m BMW dealer, I think your website is great and I recommend it to all of my clients. However, your editorial posture occasionally comes off very "anti-dealer" and never seems to tell about good dealers, which I'm sure you agree are many. But we are car dealers, and we've come to expect being abused by the press - it comes with the territory. We sell over 1,000 high line, luxury, and exotic automobiles each year and most of our customers would be pleased to share with anyone how satisfied they are with our store.


Gabriel,
2001 CL Type S
2001 Lexus RX300 Silversport
 
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