Bloomberg report on Cayenne sales
#16
Three Wheelin'
Join Date: Jun 2003
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Oops, JeffES, I didn't mean PNA discounted. I was referring to the dealers.
I think you and Anir recognize that the sales volume is not linear.
It may be a good thing to have inventory for immediate resale (30 days), if you have paid for it. Dealers don't. They have flooring costs that have to be added to the cars cost basis. Add to that the discounting and the margins are slim. That's the Amer car dealers work and thats OK when selling volume & you make money on financing. The aggregate can make a dealership successful.
P Dealers however are in a pinch. They're flooring slow selling Bosters & 911s and have obligations to take on a ****load of Cs. They're not used to this kind of situation. They can as a group band together and resist taking C inventory (on flooring) without some kind of offset. PAG must recognize their distribution network is loaded and help keep them in business.
It may start with 0% financing, they will subsidize the loans (who knows?)
They second wave of Porschophiles (late adopters) will begin buying this third quarter (with discounts) and that will keep their projections whole (I hope).
But after that, the V6 will have to carry them into the mainstream (non Porschophiles) - the badge buyers.
Frankly, I'm amazed at how many TTs were sold, I didn't think in this economy they could pull it off (kudos).
PAG is a smart bunch and I think they're doing a great marketing job - but they're on the edge - we'll see. I just want to see that guy fired who didn't fit a spare in a SUV............
And Oh........ I don't think it's ugly (my .02), but expensive yes.
I think you and Anir recognize that the sales volume is not linear.
It may be a good thing to have inventory for immediate resale (30 days), if you have paid for it. Dealers don't. They have flooring costs that have to be added to the cars cost basis. Add to that the discounting and the margins are slim. That's the Amer car dealers work and thats OK when selling volume & you make money on financing. The aggregate can make a dealership successful.
P Dealers however are in a pinch. They're flooring slow selling Bosters & 911s and have obligations to take on a ****load of Cs. They're not used to this kind of situation. They can as a group band together and resist taking C inventory (on flooring) without some kind of offset. PAG must recognize their distribution network is loaded and help keep them in business.
It may start with 0% financing, they will subsidize the loans (who knows?)
They second wave of Porschophiles (late adopters) will begin buying this third quarter (with discounts) and that will keep their projections whole (I hope).
But after that, the V6 will have to carry them into the mainstream (non Porschophiles) - the badge buyers.
Frankly, I'm amazed at how many TTs were sold, I didn't think in this economy they could pull it off (kudos).
PAG is a smart bunch and I think they're doing a great marketing job - but they're on the edge - we'll see. I just want to see that guy fired who didn't fit a spare in a SUV............
And Oh........ I don't think it's ugly (my .02), but expensive yes.
#17
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"P Dealers in a Pinch"... oh, I nearly laughed outloud there! Let's see - near parts monopolies, ROI for service departments that's off the charts when compared with any other dealer network (look at number of RO's/number of techs/hours), and on top of that nearly a decade of lower than standard floorplan costs vs. sales.....
Most can withstand a few costs...
J
Most can withstand a few costs...
J