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Dealer ADM's pushed 80's Porsche to try the Tesla model

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Old 11-23-2017 | 02:39 AM
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Default Dealer ADM's pushed 80's Porsche to try the Tesla model

I read an interesting article this evening regarding how Porsche was so upset in the 80's about how Porsche dealers were grabbing profits and marking up car prices, that they tried doing away with the dealer network altogether. They were hoping to just pay the dealers 8% commission, as well as create their own service centers.. similar to Tesla today. It may explain how Porsche today is reluctant to rein in it's sales network.

https://jalopnik.com/porsche-tried-t...-de-1820680845
Old 11-23-2017 | 02:43 AM
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When I told my dealer I wasnt interested in paying ADM he told me I dont understand the "Vison" of service and quality the dealership was trying to provide the customer. We had this conversation
via texts and email. He told me, I need to come in for a face to face meeting to understand what they are trying to do. I told him to forget it but he talked me into a cup of coffee. So I am going to do
this for the forums entertainment. I will elaborate next week when it happens.
Old 11-23-2017 | 03:00 AM
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What do I have to do to get you into an ADM today?

Lolomg.

This should be priceless.
Old 11-23-2017 | 03:59 AM
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I saw an original window sticker for a mid 80s turbo. Had a $10k ADM on top of a ~$75k car. Porsche could have set the GT3 MSRP at $173k base and gotten rid of a lot of the ADM issues. Or better yet, set it at $193k and then dole out incentives to sell like other manufacturers.
Old 11-23-2017 | 04:11 AM
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Originally Posted by evilfij
I saw an original window sticker for a mid 80s turbo. Had a $10k ADM on top of a ~$75k car. Porsche could have set the GT3 MSRP at $173k base and gotten rid of a lot of the ADM issues. Or better yet, set it at $193k and then dole out incentives to sell like other manufacturers.
But that would how upset it’s pricing hierarchy... which takes years to put in place... for the sake of short term profit. Can’t upset the LT pricing strategy, which also takes competitors within VAG, and outside of it.
Old 11-23-2017 | 07:14 AM
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Originally Posted by evilfij
I saw an original window sticker for a mid 80s turbo. Had a $10k ADM on top of a ~$75k car. Porsche could have set the GT3 MSRP at $173k base and gotten rid of a lot of the ADM issues. Or better yet, set it at $193k and then dole out incentives to sell like other manufacturers.
‘theory yes, but now all the MSRP buyers are paying more? By the way the 80’s were the drug years watch Tony Montana drop cash in a bag for his 928(:
Old 11-23-2017 | 07:54 AM
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Originally Posted by CAlexio
I read an interesting article this evening regarding how Porsche was so upset in the 80's about how Porsche dealers were grabbing profits and marking up car prices, that they tried doing away with the dealer network altogether. They were hoping to just pay the dealers 8% commission, as well as create their own service centers.. similar to Tesla today. It may explain how Porsche today is reluctant to rein in it's sales network.

https://jalopnik.com/porsche-tried-t...-de-1820680845
There is a more in-depth review of this in the book "Excellence was Expected." Porsche did end up owning one dealership in the States - Stoddard's.
Old 11-23-2017 | 10:19 AM
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The well known article

http://www.autonews.com/article/2006...%3A-no-contest

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Old 11-23-2017 | 11:58 AM
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I don't know if the Tesla model is the solution to ADM's but if I owned Porsche I'd be wondering why we're turning so many GT buyers away while making other 911's that have to be sold at a discount.
Old 11-23-2017 | 01:31 PM
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Porsche has say in who they give franchises to. They can set the terms and force compliance if they wanted to. At the very least, pull the franchise from any stealer who buys from other dealers above MSRP just to add even more MSRP as well as any who skip depositors in line for auction like nonsense. That’s just scumbag behavior.
Old 11-23-2017 | 03:18 PM
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Originally Posted by brake dust
There is a more in-depth review of this in the book "Excellence was Expected."
Porsche did end up owning one dealership in the States - Stoddard's.
Porsche did not buy Stoddard Imported Cars in Willoughby, Ohio. The Porsche
/Piëch family bought it for the account of their family investment arm - Porsche
Holding
Salzburg in 1983. The Porsche family then let Mick Williams, ex-president
of PCA & a family friend they met via Porsche club activities, run the dealership. But
Stoddard was never incorporated into the Porsche car company, which at the time
I think was called Dr. Ing. h.c. F. Porsche KG. In 2004, Bruce Schwartz bought
Stoddard Imported Cars from Porsche Holding Salzburg. In 2011, Roger Penske
bought Stoddard from B. Schwartz & Baker Porsche from Fred Baker & merged
them into Porsche of Beachwood at a suburb of Cleveland (not far from Willoughby).

In restructuring after the failed attempt at taking over the VW Group, the Porsche/Piëch
family gave up ownership of Porsche Holding Salzburg to the Volkswagen Group in 2011
as part of the arrangement in which Porsche Automobil Holding SE ended up with (initially)
50.7 percent of VW's common shares, while also 'merging' Porsche AG to VW. Porsche
Automobile Holding SE now owns 52.2 of VW after acquiring the VW shares of Suzuki in
2015.

***
We have previously discussed here at Rennlist Porsche's plan to replace its U.S. dealerships
with a new distribution network back in the early 1980's. Because I lived through that period
of history & knew Porsche dealers at the time, I often bring it up into our discussions to bring
current thinking into perspective with past history at Porsche!

Old 2014 Thread
RS buyers: Is your dealer making you sign a "right of first refusal buyback at MSRP"?
post #88
https://rennlist.com/forums/991-gt3-...l#post12647610

Old 2015 Thread
Question for Actual 918 Buyers (Those w/ Deposits down)..
Post #16
https://rennlist.com/forums/porsche-...l#post11429806

Old 2017 thread
No Airfreight now
Post # 14
https://rennlist.com/forums/991-gt3-...l#post14221904

Saludos & Happy Thanksgiving to our fellow Rennlisters,
Eduardo
Scottsdale
Old 11-23-2017 | 03:44 PM
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In to see what happens with Oldguy's "meeting"...
Old 11-23-2017 | 05:27 PM
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Originally Posted by StudGarden
Porsche has say in who they give franchises to. They can set the terms and force compliance if they wanted to. At the very least, pull the franchise from any stealer who buys from other dealers above MSRP just to add even more MSRP as well as any who skip depositors in line for auction like nonsense. That €™s just scumbag behavior.
It's even easier than that...stop giving allocations who are charging ADMs for their GT cars and send more to the good guy dealers who sell at MSRP. The stealers and the dealer association wouldn't be able to do jack crap about that. It'd be pretty easy to see which dealers are speccing their own cars and trying to sell at ADMs as those cars don't sell within days of it getting into the dealer's inventory system.
Old 11-24-2017 | 12:44 AM
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Originally Posted by StudGarden
Porsche has say in who they give franchises to. They can set the terms and force compliance if they wanted to. At the very least, pull the franchise from any stealer who buys from other dealers above MSRP just to add even more MSRP as well as any who skip depositors in line for auction like nonsense. That €™s just scumbag behavior.
No they can’t. I don’t think you’re very familiar with State dealer laws or Federal Antitrust law. Plenty of discussion on the topic in previous threads.
Old 11-24-2017 | 12:46 AM
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Originally Posted by usctrojanGT3
It's even easier than that...stop giving allocations who are charging ADMs for their GT cars and send more to the good guy dealers who sell at MSRP. The stealers and the dealer association wouldn't be able to do jack crap about that. It'd be pretty easy to see which dealers are speccing their own cars and trying to sell at ADMs as those cars don't sell within days of it getting into the dealer's inventory system.
Given the fact that many of the ADM dealers are large premier dealerships that sell huge volumes of cars and SUVs, you think Porsche is gonna **** off its biggest buyers due to few hundred of us whiney GT customers with first world problems? Good luck getting them to do that. As long as all the cars gets sold, Porsche could care less.


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