Is the Bloom off the Rose?

[Brucelee]

Porsche AG, which has posted several years of profit growth, expects an earnings decline in the current fiscal year compared with a year earlier due to expected flat operating profit and gains in the year-earlier period.

The luxury-auto maker said car sales rose 0.4% in the first four months of its fiscal year, ending July 31, but the Stuttgart, Germany, company said it expects little significant growth until it releases its new Panamera in 2009.

From today's news!

[Ronzi]

Originally Posted by Brucelee

Porsche AG ... said it expects little significant growth until it releases its new Panamera in 2009.

From today's news!

Probably just means they have reached the limit of their market penetration with the current models, so the area(s) of significant growth have to come from introducing models which compete in a different market segment.
Only so many people want a (Porsche) sports car, in other words.

[thomschoon]

It also doesnt help that a Euro cost $1.32, the exchange rate with their biggest consumer market must be hurting them just a bit.

[eslai]

Originally Posted by Ronzi

Probably just means they have reached the limit of their market penetration with the current models, so the area(s) of significant growth have to come from introducing models which compete in a different market segment.
Only so many people want a (Porsche) sports car, in other words.

That could be quite true, but what does that say about the Cayman? Failure?

Originally Posted by eslai

That could be quite true, but what does that say about the Cayman? Failure?

I think many Caymans were "pre-sold" in 2005 for delivery in 2006. So what year does Porsche report the sale?? If they report the sale in 2005 it makes it more difficult to have a good year over year comparision in 2006.

[Brucelee]

Based on what I have seen, Boxster/Cayman sales are flat from year to year.

Translation is that Porsche has likely traded Box customers for Cayman. I don't THINK that is what they had in mind.

However, since Porsche shares so little data, I don't know if we will ever know what is really going on.

[eslai]

All i can say is i'm surprised at how few Caymans and 987 Boxsters I see out here in San Diego. I thought they'd be everywhere by now.

[Ronzi]

Originally Posted by eslai

That could be quite true, but what does that say about the Cayman? Failure?

That depends on what the expectations were when the car was introduced. I don't recall ever seeing any numbers from Porsche on how many they expected to sell, but they could be out there somewhere.

There were more than a few folks scratching their heads when the Cayman was intro'd, as to what the sam hill they were up to. Porsche's justification for the car was that it was/is the Porsche for the "sporting driver", whatever that is.

Some folks, me included, felt that it is Porsche's ace-in-the-hole if the 911 series becomes uncompetitive in big-time GT racing. In other words if hanging the lump off the back end of the car is ultimately too much of a drawback to be overcome.
Obviously this hasn't happened yet, but the Ferraris and even the Panoz are nipping at their heels, with what seems to me to be much less development time and money put into the cars. The new 997-based GT3s may put the planets back in their proper orbits ... but maybe not.

In any event, the Cayman was probably a cheap way to pick up a few bucks by sticking a tin top on an existing model, stuff in a bigger motor, and then charge extra for it. A cynical viewpoint, but Porsche has never been accused of leaving a dollar laying on the table when they could grab it.

[Brucelee]

I really like the concept of the Cayman and for the most part, its execution. A fine driving car that looks pretty darn good.

If I were king of the world, the Cayman would:

Be called the Boxster. One could order a coupe version of the Boxster for LESS money than the ragtop, say $5k UNDER the existing price of the ragtop.

The ragtop would have gotten the engine upgrades identical to the coupe.

Both Boxster versions would have AT LEAST 300HP in their S versions.

Both Boxsters would have a bit richer array of standard features.

It is my belief that if the above were true, the COMBINED sales of the Boxster would be higher, although who knows for sure.

I doubt Porsche is unhappy with the Cayman, but likely unhappy with the Boxster. Frankly, if they are, I think they have themselves to blame.

[Ronzi]

Originally Posted by Brucelee

I doubt Porsche is unhappy with the Cayman, but likely unhappy with the Boxster. Frankly, if they are, I think they have themselves to blame.

I understand your point, Rich, but Porsche shouldn't be TOO unhappy with the Boxster. After all, it saved their bacon at a time when the 911 appeared to be wheezing it's last (again).
The Box and the Cayenne bankrolled the development of the upcoming Panamera, and enabled them to get what appears to be control of Volkswagen, a circumstance that probably has ol' Ferdy doing cartwheels in his grave.