John H. in DC Area

Porsche/March/N America: Rise Due To Cayenne

DOW JONES NEWSWIRES

BERLIN -- German sports-car maker Porsche AG (G.POR) said Tuesday that March vehicle sales in North America rose 23% on the year to 2,281, from 1,860, German news agency VWD reported.

Porsche said the increase resulted from sales of its Cayenne sport utility vehicle, of which 899 units have been sold in North America since the model was introduced there March 15, VWD said.

Sales of other models in North America last month fell 26% to 1,382, of which 786 units were the higher-margin 911 and 596 units were the less expensive Boxster, VWD said.

For the 911 and Boxster lines, that represents year-on-year declines of 23% and 29%, respectively.

-By Jonathan Stearns, Dow Jones Newswires; 49-30-288-8410; jonathan.stearns@dowjones.com

Updated April 1, 2003 11:48 a.m.

RobertG

899? How many were just sold to dealers? I just heard on another board that porsche was supposed to release the 2004 peppers at port on 4-1-03 but now they arent going to do it until more 2003's are sold by the dealers.........i wonder if its true.

John H. in DC Area

Very good question, Robert, I'd like to know the answer as well. If it's actual sales to customers, that 899 sales number from March 15-31 embodies some pent up sales demand from folks who ordered early, so it is not likely to be consistently replicated. On the other hand, I'm sure Porsche and all of us would like to extrapolate those sales (to 2x899 for 30 days' sales = 1,798) and see them occur every month (1,789x12mos=21,576) for a healthy year's total sales. If only sales forecasting was so straightforward and predictable.

Rick964

Actually, if you look at the Porsche press release at <a href="http://biz.yahoo.com/prnews/030401/attu024_1.html" target="_blank">http://biz.yahoo.com/prnews/030401/attu024_1.html</a> they seem to show dealer stock separate from actual sales.

Christian S.

So they've either sold 854 Cayennes.... or they've been supplied 854 Cayennes which are immediately classed as sold, of which the dealers still have 505 and there are only 349 delirious customers out there....

Anyone know the number of US Porsche dealers to allow a little basic math?

George from MD

Interesting... on Roadfly board BMW sales are regularly reported without all this dealer received vs. actual sold controversy.

Other than trying to show the Cayenne as so desirous you can't get one why would Porsche be doing this? Anyone with any common sense and in the market certainly knows they're available- don't you guys think this is backfiring and maybe having the opposite effect?

John H. in DC Area

My gosh, Rick and Christian, if that's true I would consider that a very auspicious beginning.

How long can they keep up this disconnect/charade between sold and "sold?"

</font><blockquote><font size="1" face="Verdana,Tahoma,Helvetica">quote:</font><hr /><font size="2" face="Verdana,Tahoma,Helvetica"><strong>posted by George in MD:

Other than trying to show the Cayenne as so desirous you can't get one why would Porsche be doing this?</font><hr /></blockquote><font size="2" face="Verdana,Tahoma,Helvetica"></strong>

I can think of no other reason.

EuroCarNut

Ok, time for a quick lesson on reading dealer numbers. All dealers report their sales this way, with what is sold, and what is left.

Looking at the total Cayenne numbers, it looks like dealers sold and deliverd to actual customers 612 Cayenne S and 242 Cayenne Turbos, for a total number of Cayennes sold and delivered in 15 days to be 854. These are cars that have actually been deliverd to the customers. Orders for future cars or deposits on cars not delivered do not count, as they have not been RDR'd (retail delivery registration).

As for the Dealer Stock column, that is what the dealer has on the ground that have not been delivered. Some might be almost sold and just waiting for funding (probably not, as dealers are real good about getting every last deal done to increase their numbers), but most are probably unsold sitting on the lot or showroom. Not sure if this number includes cars already allocated to a dealer's inventory but still waiting at port. If it does, then that would explain the high number of cars in the Dealer's Stock column of the report, since lots of those are 2004 cars and Porsche is not releasing them just yet.

As for the dealers in Dallas, we seem to get a pretty large allocation of cars as compared to the rest of the country (except dealers in FL., Ca., NY., & Il.). Yet, when I went to buy my car, Park Place only had 1 2003 available and Boardwalk had 3 or 4 2003's. Autobahn only had 1 left, and they were all waiting on the 2004's to come in. Lots of those were presold, but do not count in the 854 number since they haven't been paid for and delivered.

Hope this helps clear up a few things.

All in all, I think this is exactly why Porsche developed the Cayenne. In times of war, or other economic downturns, it seems that sports car sales get hit fairly hard. If it weren't for the Cayenne, Porsche sales would be down again, and who knows how long that will or can last. Having an egg in each basket (sports car and SUV)it's just Porsche hedging its bet a little.

Being a newbie, I have been following the Cayenne thread for a while. Lots of people were wondering what audience the Cayenne was targeting. Well, I think it was someone like me. I still have my 95 993, which I will probably never sell, but I replaced my S Class Mercedes and my new Jeep Wrangler with one vehicle. Now I can be a 2 Porsche family and not have to rely on other marques for off-roading (16,000 acre ranch)and going to social events with friends as a group, in 1 car.

Once more people realize this car exists (the mainstream, not us enthusiasts), then sales should be even greater and I think the numbers will speak for themselves.

Karl

John H. in DC Area

Thanks for the background info, Karl, that was helpful.

What do you all think about the relatively quick release of '04's? Is that a true shift in the production year, likely to be repeated at the same time each year; a one-time development stemming from the fact that production (Euro) actually started at the end of 2002; or a move which will give a little marketing pop for potential buyers (at somewhat of an expense to '03 values)? I suppose you can also choose "all of the above."

Scott & Renee in VA

&gt;&gt;612 Cayenne S and 242 Cayenne Turbos&lt;&lt;

wow, aren't they building them 9:1 S:Turbo's? No wonder S's are sitting around -- if that ratio was in effect, with 242 Turbo sales, they should have sold 2,178 S's...

Difference Engine

</font><blockquote><font size="1" face="Verdana,Tahoma,Helvetica">quote:</font><hr /><font size="2" face="Verdana,Tahoma,Helvetica">Originally posted by RobertG:
<strong>899? How many were just sold to dealers? I just heard on another board that porsche was supposed to release the 2004 peppers at port on 4-1-03 but now they arent going to do it until more 2003's are sold by the dealers.........i wonder if its true.</strong></font><hr /></blockquote><font size="2" face="Verdana,Tahoma,Helvetica">We've already been invoiced for our first 04s. That means they're already on trucks on their way here.

Carrera GT

Selling to a dealer? Don't they call that "stuffing the channel?" Anyway, I think this is fussing over nothing. I think sales for the first year will be the telling statistic. Porsche seems to be in good health -- they're smart enough to trim production volume, they've got the Cayenne to market, the GT3 will doubtless sell every unit close to sticker.

The Carrera GT. Now, that's another ball of wax. I spoke with a dealer that was briefed on the GT -- the margin is slim, the cost to set up at the dealership is high.

When will Rennlist have a Carrera GT forum?

Cheers,

Ghost Rider

FYI:

<a href="http://forums.freshalloy.com/ubbthreads/showflat.php?Cat=&Board=FX45&Number=67347062&page=0&view=collapsed&sb=5& o=&fpart=1" target="_blank">http://forums.freshalloy.com/ubbthreads/showflat.php?Cat=&Board=FX45&Number=67347062&page=0&view=collapsed&sb=5& o=&fpart=1</a>

Some sales numbers there... don't know what that says for overall trends.