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sounds good in theory, but have you seen other cars showing at the dealer lots recently?
Remember, the only cars you see on the lots are cars that aren't sold yet. A dearth of sports cars on the lots only means that demand far exceeds supply, so any that arrive unsold are quickly snapped up. A plethora of SUVs and sedans on the lots means supply exceeds demand, and unsold vehicles sit until someone comes along who wants one of them. So what's on the lot doesn't solely depend on what is being manufactured and shipped, but also on how those numbers compare to customer demand.
You might be right. My dealings with other traffic and logistics people have been with those good at what they do. I suppose it could be left to the non professionals where you get what you get. Either way, nothing we can do to improve the situation today or tomorrow. So we patiently wait……woosaa!
Honestly, there seems to be something "special" about Emden. The port's been heavily backlogged since at least October - and if you go back 5 or even 10 pages in this thread you see that cars regularly get hung up there. Do a search on backlog at port of Emden and you'll get articles about dockworker strikes there back in the Fall. It's also likely that VW isn't doing the traffic management at the Port and I'd bet that VW is paying for bulk holding space at the port - and not paying per car or by the time a car sits in that space. That could explain why there's no incentive for the shipping company to push out the cars that have been sitting there the longest.
Honestly, there seems to be something "special" about Emden. The port's been heavily backlogged since at least October - and if you go back 5 or even 10 pages in this thread you see that cars regularly get hung up there. Do a search on backlog at port of Emden and you'll get articles about dockworker strikes there back in the Fall. It's also likely that VW isn't doing the traffic management at the Port and I'd bet that VW is paying for bulk holding space at the port - and not paying per car or by the time a car sits in that space. That could explain why there's no incentive for the shipping company to push out the cars that have been sitting there the longest.
It’s exactly the same at Bremerhaven, the port BMW uses. I had an M4 sitting there 3 months waiting on a boat, while I saw cars of others in the Bimmerpost forums arrive at the port, get shipped and receive their cars in Houston ahead of me. If literally a sh11t show.
Remember, the only cars you see on the lots are cars that aren't sold yet. A dearth of sports cars on the lots only means that demand far exceeds supply, so any that arrive unsold are quickly snapped up. A plethora of SUVs and sedans on the lots means supply exceeds demand, and unsold vehicles sit until someone comes along who wants one of them. So what's on the lot doesn't solely depend on what is being manufactured and shipped, but also on how those numbers compare to customer demand.
This would indicate that dealers are getting the most from the deals they have made from direct orders versus on the sales made from those “popular” profit making suvs. Either way not having control of the delivery of your product in less than an organized fashion is detrimental to business.
Yeah, pretty sure that's not at all how it works. Yes, dealers are clamoring for inventory - but Porsche doesn't care if they're moving an unsold vehicle or a custom order - either way it's a car that needs to be sold. Even a car that is a custom order isn't technically a "sold" vehicle until the papers are signed and it's delivered to the customer. Also regardless of whether a dealer sells a car they ordered on spec or one that they ordered for a customer it counts as a single vehicle sold. One doesn't get priority over the other.
The delays in Emden aren't because Porsche is prioritizing some vehicles for shipment over others. The port is backlogged and they're not necessarily moving cars out via a First In First Out system - they appear to be moving cars based on which they can get to first.
Agreed. I’m not very familiar with how car companies do their accounting, but I’m pretty sure that those who follow dealer-franchise model recognize revenue when the vehicle is delivered to the dealership, rather than when it is sold to the end customer. So I would imagine that It would be in their best interest to get cars to dealerships as soon as possible. Also with a 911 the margins are likely much higher than a Macan or a Cayenne, so getting 911’s to a dealership ASAP would be in their best interest. Back long at the power makes the most sense as the reason for delays.
sounds good in theory, but have you seen other cars showing at the dealer lots recently? Or maybe they have been sitting at the docks waiting as well. I do agree with your point that there does not seem to be a pattern. I’m a conspiracy theorist so I do not trust that there is not an agenda. It could be luck of the draw, but that is disappointing if it really is the case.
Maybe they are trying to control supply to maintain the perception of scarcity like the diamond and oil industries do. Doing it via dealer allocation system is not enough, they want to torture us some more haha
Either way not having control of the delivery of your product in less than an organized fashion is detrimental to business.
Psst.. That’s how it works for EVERY business that manufactures overseas. Remember the supply chain issues in 2021 and 2022? Nobody has complete end to end control of their supply chain.
You also don’t understand the difference between dealers and manufacturers. Manufacturers don’t particularly care if dealers have cars sitting on lots. And a lot of cars on lots could indicate a failing model or dealership. Dealers want a balance between cars selling as soon as they hit the lot and some filling the lot ready for sale. Dealers want to have some inventory to sell to “walk in” buyers who they would lose because they don’t want to wait for a car. However they also don’t want a glut of unsold cars, nobody wants to sit on unsold inventory for long.
Well, another problem with this Porsche model (and by this I mean problem for consumers) is that by keeping supply at demand minus one, they never get to feel any “detriment to their business”.
Psst.. That’s how it works for EVERY business that manufactures overseas. Remember the supply chain issues in 2021 and 2022? Nobody has complete end to end control of their supply chain.
You also don’t understand the difference between dealers and manufacturers. Manufacturers don’t particularly care if dealers have cars sitting on lots. And a lot of cars on lots could indicate a failing model or dealership. Dealers want a balance between cars selling as soon as they hit the lot and some filling the lot ready for sale. Dealers want to have some inventory to sell to “walk in” buyers who they would lose because they don’t want to wait for a car. However they also don’t want a glut of unsold cars, nobody wants to sit on unsold inventory for long.
That is the pre pandemic business model. Today most dealers would rather have a long list of buyers waiting for an allocation than a few cars sitting on a lot waiting to be sold and costing the dealer money till they are sold.
Dealers love today's business model, and many dealers are having their best years as a result.
Last edited by Staffie Guy; 05-21-2023 at 09:49 AM.
That is the pre pandemic business model. Today most dealers would rather have a long list of buyers waiting for an allocation than a few cars sitting on a lot waiting to be sold and costing the dealer money till they are sold.
Dealers love today's business model, and many dealers are having their best years as a result.
It works for them as long as all dealers in the same product group are following the same business model. The minute a Camry is available at the dealers’ lots and an Accord is not, the house of cards crumbles. That’ll happen sooner or later. Greed (pursuit of market share) and the invisible hand will take care of it. Problem for us is, there’s no 911 equivalent. Porsche can keep f-ing us for as long as they want.
That is the pre pandemic business model. Today most dealers would rather have a long list of buyers waiting for an allocation than a few cars sitting on a lot waiting to be sold and costing the dealer money till they are sold.
Dealers love today's business model, and many dealers are having their best years as a result.
For Porsche and high end brands yes…. But there is still a large market of folks who don’t have the luxury or the desire to wait for the perfect spec. They’re still willing to buy whatever’s on the lot and closest to what they want in a “pretty” color. If the Honda dealer doesn’t have it, they’ll go to the Toyota dealer and then the Kia dealer and so on until they find something they can live with and not wait 8 or more weeks for.
Maybe they are trying to control supply to maintain the perception of scarcity like the diamond and oil industries do. Doing it via dealer allocation system is not enough, they want to torture us some more haha
Not applicable to Porsche, but dealers are using off premises lots to "hide" inventory. Around here, the mall parking lots are loaded with new cars. They are definitely playing games with inventory to keep the illusion of the shortages alive, to continue charging MSRP and over.
05-20-2023, 05:29 PM
