LOS ANGELES — Porsche's longtime policy of no incentives will stand despite a nosedive in sales and a 118-day supply of vehicles on Nov. 1.
Porsche sales, which fell 22.8 percent through October, were hit by a triple whammy — three model changeovers. The redesigned 911 went on sale in October, and the two cars debuting here, the Boxster and Cayman, are being freshened for a February debut.
In an interview during the Los Angeles Auto Show last month, Detlev von Platen, CEO of Porsche Cars North America, said some of the sales drop was anticipated because of the model cycles.
"We will not act differently," he said. "We remember what happened 10 and 15 years ago."
Von Platen was referring to Porsche's temporary use of incentives at that time, which caused residuals to plunge.
"Acting on a short-term basis is wrong," he said.
Porsche hasn't decided whether to cut U.S.-bound production for 2009, but "we can react very quickly," said von Platen. U.S. allocation could also be diverted to markets that still are stable, such as China, Russia and the Middle East.
Von Platen said Porsche has sold many of its 2008-model 911s but still has a substantial number of 2008 Boxsters and Caymans, which he hopes to move before the freshened model goes on sale next year.
Certified sales, on the other hand, are up 20 percent from last year. Porsche expects to sell about 14,000 units this year.
"The CPO program is the entry level for our customers. This is why we have to keep our residuals as strong as possible," said Von Platen.
Unlike BMW AG, which canceled its range-topping CS coupe sports car because of the economy's meltdown, Porsche is rolling ahead with the 2009 launch of its new Panamera four-door, four-seat vehicle. Von Platen said there will be no delays but wouldn't say specifically when the car will go on sale in the United States.
Von Platen said Porsche sales will be down for the year but wouldn't predict how much. He's hoping that California — a major market for the brand — will come back first because it was the first region to slow.
Courtesy:- http://www.autonews.com/article/20081201/ANA09/812010321/1178
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