Boxster and 911 factory takes ‘extended’ Christmas break
26 November 2008

Porsche has cut vehicle production at its Zuffenhausen plant because of falling sales.

The plant, which assembles all 911 and Boxster models, will close for an ‘extended Christmas holiday’ starting on 19 December, opening again on 19 January 2009.

A company spokesperson told Autocar that, although the plant would be closed for a month, Porsche has no plans to cut its workforce.

The firm said that overtime accrued during ‘a very busy 2007’ means that leave already owed to employees will balance the forthcoming downtime.

Even with the launch of new models such as the Cayenne diesel and facelifted Boxster and Cayman, Porsche is unlikely to better a bumper 2007, in which it sold close to 100,000 units.

Ian Tonkin

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26 November 2008

[quote Autocar]Even with the launch of new models such as the four-door Panamera, Cayenne diesel and facelifted Boxster and Cayman, Porsche is unlikely to better a bumper 2007, in which it sold close to 100,000 units.[/quote]

The Facelifted Boxster-Cayman and the diesel Cayenne are only due in Febuary 2009, and the Panamera at the end of that year. How are these models supposed to help Porsche's 2008 results?

26 November 2008

Despite the extended closure , I think Porsche are still better positioned to weather the economic storm in the next 12-18 months than most car makers.

I'm also not convinced a moderate revision of the Boxster/Caymen and diesal Cayenne is going to have people flooding back in the current economic climate. I think the Panamera will attract new buyers to the brand.

I think longer term, the outlook is more worrying for Porsche- they are one of the most profitable car makers in the market- very few car manufacturers earn per car profit that Porsche do. Part of that has been been that in thier market sector historically few manufacturers will compete with them.

The situation now has changed:

911: Aud R8 seems to have bettered it, New GTR is more of a drivers car, AM Vantage is more prestigious....

Cayenne- Large SUV's seem to be dying a rapid death- RR, Merc, BMW, Audi all offer competition.

Panamera- entering a marketplace with Maserati, Merc, Audi,Bentley and even AM...

Boxster/Caymen- If they want to charge in excess of 50k for a spec'd up Caymen they need to offer more- don't hold it back- let it match current 911 levels of performace and enhance the 911 to make it a better car.

26 November 2008

That Panamera is no looker is it?

Why does every Porsche have to look like the 911 these days?

27 November 2008

[quote Maj1c]

I think longer term, the outlook is more worrying for Porsche- they are one of the most profitable car makers in the market- very few car manufacturers earn per car profit that Porsche do. Part of that has been been that in thier market sector historically few manufacturers will compete with them.

[/quote]

Part of the reason. The main part though is the fact that they are very shrewed in the building and pricing of their cars.

For example a 911 GT3 costs only a little more to make than a standard C2, despite the quite substantial price differential. It is the same for the Cayman and Boxster too.

 

 

It's all about the twisties........

27 November 2008

I think the large part of Porsche profits come from their financial products & activities.

An example of ths is their hedge fund activites. This earnt them more money then their total annual turnover (from vehicle sales) for 2007.

27 November 2008

Porsche should just stick with the 911/Boxster and the engineering consultancy business. This business model has served them well for many years.

The continual evolution of the 911 keeps costs down and it is still a very competitive product especially now when fuel economy and emissions are under focus.

The rear engine layout is brilliant for traction in the two wheel drive configuartion and helps keep the overall size down. Trying to compete with high technology models from others is an unnecessary risk. The 911 is a real enthusiasts product and will always find buyers, whereas many other cars at this level are mere status symbols.

27 November 2008

[quote jerry99]

Porsche should just stick with the 911/Boxster and the engineering consultancy business. This business model has served them well for many years.

[/quote]

True it has served them well but they do still have a four seat sized hole in their range (and yes I am dismissing the Cayenne).

Imagine the scenario. Young upwardly mobile type person starts in his 20's in a Boxster. As their income goes up, they can purchase a 911. They get married and have child / children, which is still fine because the 911's rear seats can take the littleuns until they are about 5 or 6 years old. What do they buy then?

The Cayenne is too un PC and they don't really want a 4 x 4 anyway, so where do they go? If they are an enthusiast, they buy a BMW.

Porsche do need a four door car. Then their range will be complete.

 

 

It's all about the twisties........

27 November 2008

[quote TegTypeR]

Imagine the scenario. Young upwardly mobile type person starts in his 20's in a Boxster. As their income goes up, they can purchase a 911. They get married and have child / children, which is still fine because the 911's rear seats can take the littleuns until they are about 5 or 6 years old. What do they buy then?

The Cayenne is too un PC and they don't really want a 4 x 4 anyway, so where do they go? If they are an enthusiast, they buy a BMW.

Porsche do need a four door car. Then their range will be complete.

[/quote]

I agree - for most families, this is a far better solution than a Cayenne.

27 November 2008

rtwingo, valid point you make there. Porsche do things a bit differently. Its financial year runs from 31 July 08 to 31 July 09. This would then include the launches of the Cayenne diesel and facelifted Boxster/Cayman.

Porsche has said that the Panamera is coming to the UK in "summer" next year so in all likelihood it would fall under the 2009/10 fiscal year.

27 November 2008

Well Ian, I guess I haven't tought of that like that. Thanks!

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