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blog

Destruction of Porsche

3/24/2011

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Porsche Cayenne
​            We have all seen them and all have heard about them, but really are they what’s good for this one brand.  I am talking about the destruction of the Porsche brand, through the release of the Cayenne and Panamera models.  Yes we know that Volkswagen is trying to make this little sports car manufacture more profitable, but do they really need
to make it more mainstream.  We all know what happens to bands when they become more mainstream, they tend to die out when their new fans move on to the next new band. 
​
    You might have seen this happen to the Offspring when they became for mainstream.  Now how could this pertain to the auto industry?  Well consumers are a fickle bunch, moving about from one fad to the next.  Sure your selling something more expensive than a $20 CD, but there are still fads within the auto industry.  Remember the Minivan craze of the nineties, it faded out when the SUV fad started.  Can you name the companies who still have a minivan within their line-up? 
​
​
            Know why anyone would want to create a fad out of a company which has a consumer base with expensive tastes.  Well for one you can make tons of money and second you can help start a new fad.  Yes the companies, who usually start a fad, are the ones who live on well after the fad has died out.  But that is not always true.  Remember the Ford Ranchero, it was the first crossover truck, but asks anyone about what a car based truck is and they will answer El Camino.  So for Porsche to take on something this risky, is, well either really dumb, or really smart. 
​
            But there is one thing that this brand will never have again once this fad is over and done.  It will never be seen as a sports car company again, well not at least until the following generation of consumers enter the market.  This can be seen through Hyundai, since most consumers who were around when it started, still remember the horrible Pony and Excel models.  So for Porsche to regain its spot against Ferrari, Lamborghini and even Lotus, it would have to limp along for at least a decade.  And within the small sports car market, that could be long enough to kill a company. 
​
            Now the worst thing about all of this is not the fact that Porsche has these two models, it’s the fact that they are now planning even more mainstream models.  Within the next decade Porsche is planning on releasing another smaller SUV, 3-series fighter sedan and an entry level sports coupe.  Sure they can make you a lot of money, but when Lotus, McLaren, Ferrari, and Lamborghini are planning their own mainstream models, Porsche may want to rethink their product line.  They may want to beef up their specialty models which they currently do not have, so that when the competition comes to play in their sandbox, Porsche can still fight back on the top tier of the sand castle.
​

            If they want to still be seen as a sports car company within the next decade, they may want to keep the sports cars within their line-up.  Soccer moms may be where the money is, but your history is no where near a soccer field.  Got the picture Porsche.

Everett J.
#autolooks
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    Looking to see where Everett J. came from or how he knows so much about the industry he loves.  Then check out his page:
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