So much for the sub-Boxster Porsche sports car...

[MX793]

BERLIN (Reuters) - German sports car maker Porsche (VOW3.DE)(PAH3.DE) has dropped plans to build a two-seater vehicle which would have been smaller and cheaper than its Boxster model, Stuttgarter Zeitung reported on Saturday, citing Chief Executive Officer Matthias Mueller.
Such plans would risk diluting the brand and alienate traditional customers, according to Mueller.
"We would do no good to the brand if we were to lose traditional Porsche customers" by pursuing a smaller Boxster model, the CEO was quoted as saying in an interview.
Mueller said Porsche also has no immediate plans to develop a smaller version of its four-door Panamera sedan, though he indicated that such a model could become an option in five or six years.
Porsche is aiming to increase annual deliveries to about 200,000 sports cars and SUVs by taking advantage of resources at Volkswagen. Europe's largest auto manufacturer owns 49.9 percent of Porsche's core business and is currently examining ways to purchase the remainder.
(Reporting By Andreas Cremer; Editing by Toby Chopra)

http://finance.yahoo.com/news/porsche-ceo-drops-plan-entry-094007232.html;_ylt=AhX3m5AwI24oTxod..iBez.iuYdG;_ylu=X3oDMTQ0NmZncWp2BG1pdANGaW5hbmNlIEZQIFRvcCBTdG9yeSBSaWdodARwa2cDYTNiMzkyZmYtZGNmYS0zMWQzLWIyZWItYzdmYzA0ZGEzYjBjBHBvcwMyBHNlYwN0b3Bfc3RvcnkEdmVyAzllYTczZjgwLTljMTYtMTFlMS05ZThiLTljNTBmMmYxOGY5MQ--;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3

The bolded part jumps out at me.  So offering a sports car priced beneath the Boxster would "dilute the brand" and drive away traditional Porsche buyers, but apparently offering a mommy-mobile SUV priced beneath the Boxster doesn't?

[sportyaccordy]

Doesnt VW have a little roadster coming out

[Galaxy]

They seem to be flip flopping on this every few month.

[AltinD]

Doesnt VW have a little roadster coming out

VW is flip=flopping even more (the Porsche) on that

[Lebowski]

Yes, it would dilute the brand, but IMO Porsche has significantly diluted the brand already with the Gayenne and Panamera.

[SVT666]

Why would it dilute the brand?  Porsche builds sports cars.

[Rich]

They are getting ready to build a small SUV, too.  Fuckin' A, Porsche.

[TurboDan]

Why would it dilute the brand?  Porsche builds sports cars.

Exactly. The price should be inconsequential. Porsche has never built to a price point, so what is the difference if it's an insanely expensive car or a car that costs circa $35K? If the car is legit, the car is legit. In this day and age, few car manufacturers not named Ferrari and Lamborghini can survive without a diverse stable of models at different price points, which probably share platforms with other mass-produced vehicles.

And it's funny, I see a ton of Sprinter work vans around every day, but it wouldn't stop be from buying a Mercedes.

[TurboDan]

Yes, it would dilute the brand, but IMO Porsche has significantly diluted the brand already with the Gayenne and Panamera.

The point of the brand is to make money by selling cars. Are you arguing that fewer people would buy Caymans or 911s if they were to build something less expensive? I doubt they're cross-shopped. Maybe it would steal a few Boxster sales, but the volume of the smaller model would make up for it exponentially.

[CALL_911]

If VW comes out with this thing anyway, who cares if Porsche rebadges it and spins off their own version?

[Colonel Cadillac]

If VW comes out with this thing anyway, who cares if Porsche rebadges it and spins off their own version?

This is a car enthusiast's board, right? We care about all Porsches!

[CALL_911]

This is a car enthusiast's board, right? We care about all Porsches!

A real car enthusiast would see the car for what it is, rather than the badge it wears.

[Raza]

So a sports car dilutes the brand, but an SUV and large sedan don't?  Even I can't get behind this decision, Porsche. 

[MX793]

So a sports car dilutes the brand, but an SUV and large sedan don't?  Even I can't get behind this decision, Porsche. 

I'd argue that an expensive/premium sports sedan like the Panamera is still in keeping with the brand image that Porsche is trying to project (high-end, expensive performance cars for people with money).  The Cayenne, on the other hand, is not.  First off, they sell a decidedly not-so-high-performance version of it (the V6) and it's priced below the Boxster/Cayman, meaning it's technically their entry-level model.  If the only version of the Cayenne they sold was the turbo, or possibly the V8 and the turbo, I might buy that it wasn't diluting the brand nearly as much as it does by offering the lower price point V6 model.

[Payman]

Why would it dilute the brand?  Porsche builds sports cars.

This. There's a market for those that love the Miata, but willing to pay a little more for the Porsche cachet.

[Payman]

In the Cayenne's defense, it gives Porsche the money to build low volume sports cars. That being said, there's no reason for Porsche not to build an entry level sports car, especially if it has a development partner in VW.

[Soup DeVille]

The bolded part jumps out at me.  So offering a sports car priced beneath the Boxster would "dilute the brand" and drive away traditional Porsche buyers, but apparently offering a mommy-mobile SUV priced beneath the Boxster doesn't?

Its an almost Orwellian level of doublespeak.

Has he never even seen a 356? A 550? 914? 924?

[Soup DeVille]

This is a car enthusiast's board, right? We care about all Porsches!

So, when porsche unveils a "sports minivan" next year, I'm automatically supposed to care about it?

[Onslaught]

This is a car enthusiast's board, right? We care about all Porsches!

Not me. I could give a shot about their 4 door POS or SUV.

[sportyaccordy]

The point of the brand is to make money by selling cars. Are you arguing that fewer people would buy Caymans or 911s if they were to build something less expensive? I doubt they're cross-shopped. Maybe it would steal a few Boxster sales, but the volume of the smaller model would make up for it exponentially.

That is what PORSCHE is arguing as the reason why they canceled this car. I think you're yelling at the wrong person.

[sportyaccordy]

I don't see the issue. Porsche should flip a Golf around 180, chop the roof and sell it at a $10-15K premium over the Eos. If theres one thing I know about Porsche its that no matter how bad the car is people will pay for that emblem. This could be a high volume high profit Golf Cabrio.

[MX793]

In the Cayenne's defense, it gives Porsche the money to build low volume sports cars. That being said, there's no reason for Porsche not to build an entry level sports car, especially if it has a development partner in VW.

Exactly.  If Porsche needs to sell something with broader market appeal to fund producing niche sports cars, I'm fine with that.  It's the fact that they're using the "it'll dilute the brand and drive away traditional customers" excuse that burns me.  If it doesn't make business sense for some reason, then just say it.  Don't feed me some BS line about "preserving the brand's image" when you're currently building a vehicle that's way outside of the "brand image" in both vehicle type (which a lower priced sports car would not be) and price point.

[Payman]

Exactly.  If Porsche needs to sell something with broader market appeal to fund producing niche sports cars, I'm fine with that.  It's the fact that they're using the "it'll dilute the brand and drive away traditional customers" excuse that burns me.  If it doesn't make business sense for some reason, then just say it.  Don't feed me some BS line about "preserving the brand's image" when you're currently building a vehicle that's way outside of the "brand image" in both vehicle type (which a lower priced sports car would not be) and price point.

It's too bad, because I would be a potential customer. Instead I'll be looking at used Boxsters.

[MrH]

Am I the only one that agrees with Porsche?

Expensive cars is Porsche's territory now.  Period.  Doesn't really matter the type of car, it needs to be expensive as hell and the top performing in its class.  That's what's equating to profits for them, and just like any business, profits drive decisions.

A cheaper sports car dilutes the brand name that's now associated with expensive.

[TurboDan]

It's too bad, because I would be a potential customer. Instead I'll be looking at used Boxsters.

Same here. I've pretty much decided on a two seater when the LR2 is paid off. A car like this would've fit the bill for me. Hopefully VW will go ahead with their version, at least.

[TurboDan]

Am I the only one that agrees with Porsche?

Expensive cars is Porsche's territory now.  Period.  Doesn't really matter the type of car, it needs to be expensive as hell and the top performing in its class.  That's what's equating to profits for them, and just like any business, profits drive decisions.

A cheaper sports car dilutes the brand name that's now associated with expensive.

Well, a car like the one we're discussing WOULD be top performing in its class, since it'd be slotted above something like the Miata but presumably slightly below the Boxster and Z4. Actually, it would really be in a class of its own.

I don't know why something not being "expensive as hell" would be bad for the brand. The Boxster's MSRP was $39,9xx when it was introduced, and the global economy was much better then. Land Rover's next Defender is going to go after the Wrangler and the Toyota Hilux. Does this make the Range Rover any less appealing?

[Eye of the Tiger]

It's not like I could even afford a cheap new Porsche, so I don't care.

[MX793]

Am I the only one that agrees with Porsche?

Expensive cars is Porsche's territory now.  Period.  Doesn't really matter the type of car, it needs to be expensive as hell and the top performing in its class.  That's what's equating to profits for them, and just like any business, profits drive decisions.

A cheaper sports car dilutes the brand name that's now associated with expensive.

Except, you know, the base model Cayenne which is neither particularly expensive (Grand Cherokees can run as much with lots of luxury goodies) nor top performing in its class (I'd wager an X5 xDrive35i is faster, and an SRT8 Grancho definitely is).

[MrH]

Except, you know, the base model Cayenne which is neither particularly expensive (Grand Cherokees can run as much with lots of luxury goodies) nor top performing in its class (I'd wager an X5 xDrive35i is faster, and an SRT8 Grancho definitely is).

Find my a stripped out Cayenne...Also, the market is a hell of a lot bigger for Cayenne's than a small sports car that slots under the Boxster.

Well, a car like the one we're discussing WOULD be top performing in its class, since it'd be slotted above something like the Miata but presumably slightly below the Boxster and Z4. Actually, it would really be in a class of its own.

I don't know why something not being "expensive as hell" would be bad for the brand. The Boxster's MSRP was $39,9xx when it was introduced, and the global economy was much better then. Land Rover's next Defender is going to go after the Wrangler and the Toyota Hilux. Does this make the Range Rover any less appealing?

A class of its own.  Exactly.  There isn't much of a market for this car.  The Porsche higher ups think this will be more detrimental to the image of the brand than it would help by selling a few thousand a year.  You think how many millions upon millions of dollars it takes to create a new car, all for a handful of sales that will ultimately hurt your brand image?  It doesn't make much sense.

[sportyaccordy]

Am I the only one that agrees with Porsche?

Expensive cars is Porsche's territory now.  Period.  Doesn't really matter the type of car, it needs to be expensive as hell and the top performing in its class.  That's what's equating to profits for them, and just like any business, profits drive decisions.

A cheaper sports car dilutes the brand name that's now associated with expensive.

A rebadged Touareg SUV dilutes a brand name associated w/sports cars, by that logic

In reality, short of killing the 911, nothing will dilute the Porsche brand. As long as Porsche makes 911 GT3s everything else they pump out is irrelevant

But Porsche def needs to... well... shut the fuck up about "brand dilution". If the Cayenne didn't dilute the brand nothing will