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There have been times in Porsche’s history where they produced too many 911s. They’re not going to ramp up production any further if that’s what you’re waiting for.
There have been times in Porsche’s history where they produced too many 911s. They’re not going to ramp up production any further if that’s what you’re waiting for.
Actually I just took delivery of my 911 Targa 4S. Just trying to point out that Porsche is now moving towards a "Ferrari like" allocation process which keeps prices high, and at least in the US results in ridiculous dealer ADMs. The era when the company nearly failed is when they overproduced sports cars during a recession and had no other products. With the introduction of the Cayman/Boxster and the SUV's they saved the company. Now the 911 is being treated like a luxury good to be rationed like Hermes handbags. Very frustrating for many potential customers who can afford a 911 but can't get an allocation.
^ Can you blame them? They're trying to make the most money as possible. They're optimizing their bottom line and pretty close to perfecting their business model. They don't care you can't get an allocation at MSRP. Actually they love it. This is the new normal going forward. It will never go back. Restrain supply and they'll sell as many needed to report robust numbers in that earnings call. Diamonds are forever.
Actually I just took delivery of my 911 Targa 4S. Just trying to point out that Porsche is now moving towards a "Ferrari like" allocation process which keeps prices high, and at least in the US results in ridiculous dealer ADMs. The era when the company nearly failed is when they overproduced sports cars during a recession and had no other products. With the introduction of the Cayman/Boxster and the SUV's they saved the company. Now the 911 is being treated like a luxury good to be rationed like Hermes handbags. Very frustrating for many potential customers who can afford a 911 but can't get an allocation.
No, the factory is running at capacity. They are not limiting production like Ferrari or Hermes.
Actually I just took delivery of my 911 Targa 4S. Just trying to point out that Porsche is now moving towards a "Ferrari like" allocation process which keeps prices high, and at least in the US results in ridiculous dealer ADMs. The era when the company nearly failed is when they overproduced sports cars during a recession and had no other products. With the introduction of the Cayman/Boxster and the SUV's they saved the company. Now the 911 is being treated like a luxury good to be rationed like Hermes handbags. Very frustrating for many potential customers who can afford a 911 but can't get an allocation.
Despite being mass produced and assembled by robots, a 911 is a luxury good — nothing new.
New 911s have never been a car for the proletariat.
Reduced supply keeps the values higher and depreciation down.
If it was “Ferrari-like”, we’d be forced to buy a Macan, Panamera, Cayman, Boxster, and Taycan before given the opportunity to buy a 911.
If someone can afford a 911 and can’t get an allocation, pre-owned cars are available. Having money and still not being able to get what you want builds character. 😜
Allocations have always been available for Carreras. The last couple years ADMs have been up to ~20%. During the recession discounts were up to ~20%. Simple supply/demand...no ulterior business models.
No, the factory is running at capacity. They are not limiting production like Ferrari or Hermes.
This is 100% correct. Porsche has had many years of success with their current business model, they have no need to try to copy Ferrari or anyone else. Porsche sells cars to their dealers at a certain price (rumored to be around 12% -15$ below MSRP in the US), as long as they don't have to incentivize sales, Porsche does not benefit from ADMs and other things currently occurring in the marketplace.
Allocations have always been available for Carreras. The last couple years ADMs have been up to ~20%. During the recession discounts were up to ~20%. Simple supply/demand...no ulterior business models.
If demand goes down on the 911, they will certainly supply less. I'll bet a beaner.
11-17-2023 | 09:25 PM
