Econ 101

[Brucelee]

Originally Posted by baseball

Can you let me know where you got that sales data from? The data I have doesn't show that much of a decline and I want to make sure my source has it right.

You are correct about being in the drivers seat on the purchase of a leftover

Just read that on Fortune mag online. Latest article on hot and not so hot cars.

[baseball]

The only thing I found at Fortune online was this video, which gives some good insight to the original poster's question:
http://money.cnn.com/video/ft/#/video/business/2007/07/12/fortune.global.500.porsche.cnn

I did find a Forbes article, which says Boxster sales are down 21.5%:
http://www.forbes.com/2007/11/30/cars-sales-year-forbeslife-cx_bh_1130worstcars_slide_8.html?thisSpeed=30000

21% is along the lines of the data I have.

Not trying to nit-pick, just trying to verify my data as I have some analysis to complete for the 'real world' and I didn't want to be completely off the mark.

And in answer to the original question, if Porsche likes to keep their margins above 19%, they'll clearly have to do something about the Boxster - Limit production, spice the car up with a limited edition, or drop it from the line. It looks like the first two options is where Porsche is headed for now.

[Brucelee]

"Helped by the major revamp for 2005, Boxster sales had climbed from 3,513 in 2004 to 8,327 for the 2005 calendar year. But with the new Cayman sitting next to it in Porsche showrooms, Boxster volume shrank to 4,858 for calendar 2006. Cayman, meanwhile, recorded a healthy 7,320 sales for calendar 2006. "

© Porsche7. Porsche Boxster
January to October '07 sales: 3,148
Vs. January to October '06: Down 21.5%

Correct, down 21.5% from last year. Down from 8327 in 2005 to 3148 in 2007.

Anyway you look at it, that is a pretty big drop for the roadster.

[thomschoon]

I think that the larger issue is currency rates, with a soft US economy how long will, not can, Porsche hold pricing to keep sales volume. As a Porsche shareholder I think they are doing a great job managing the company, as a P-car owner I wonder when parts will be stabilized as they seem to change with the exchange rates which has only meant up.

[Brucelee]

Many foreign car makers have built plants worldwide to deal with currency rates etc.

Porsche MAY be too small to do this but VW is not.

Since they are joined at the hip .......

Of course, VW is closing its Mexico plant, which hasn't worked out, so who knows.

[baseball]

Thanks for that info Brucelee, that helps. For those that are interested, I found the article here:
http://auto.howstuffworks.com/porsche-boxster-history7.htm

Looks like the Cayman cannibalized the Boxster sales.