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    Porsche reducing 996 & boxster production!!

    dear all,

    porsche is going to reduce production of 911 and boxster due to less demand! here's the (german) news. the reasons stated here are the german "dienstwagensteuer" (private income tax for company cars -- which is about to be raised) and the difficult economic situation. in addition to this, i read today in the newspaper that in feb-2003 the US sales of the 996 and the boxster have fallen 40% compared to feb-2002.

    here's the news (german language)

    Der deutsche Sportwagenhersteller Porsche wird die Produktion der beiden Modelle 911er und Boxter zurückfahren. Dies sagte ein Sprecher am Dienstag. Da die Verkaufszahlen aufgrund des schwierigen wirtschaftlichen Umfelds und der drohenden Erhöhung der Dienstwagensteuer in Deutschland das Niveau des Vorjahres nicht erreichen werden, soll die Produktion zurückgefahren werden, hieß es.

    Einzelheiten hierzu wurden noch nicht bekannt. Porsche hält allerdings weiter an seinem Ziel fest, Gewinn und Umsatz in diesem Jahr nochmals zu steigern.

    Hierzu soll vor allem der neue Geländewagen Cayenne beitragen, der innerhalb der nächsten Tage auch in den USA verfügbar sein wird.

    Im Gesamtjahr will Porsche rund 65.000 Fahrzeuge nach ca. 55.000 im Vorjahr verkaufen.

    Re: Porsche reducing 996 & boxster production!!

    Porsche Cuts 911, Boxster Production as Sales Fall (Update3)
    By Bret Okeson

    Geneva, March 4 (Bloomberg) -- Porsche AG, the carmaker with the highest profit margins, cut production of the 911 and Boxster models as falling stocks curb spending by the wealthy and the prospect of a war in Iraq damps economies. The shares fell as much as 13 percent.

    The Stuttgart, Germany-based automaker reduced output by ``several thousand'' units of each model, said Chief Executive Officer Wendelin Wiedeking in an interview at the Geneva car show. Porsche expects sales of both cars to fall in this financial year.

    Demand for the 911 model, with a starting price tag of about $90,000, has plummeted as securities companies in the U.S., Porsche's largest market, slashed 75,400 jobs and cut bonuses. Sales of the Boxster, with a base price of $46,000, also are off.

    ``The 911 is the cash cow for Porsche,'' said Knut Kuehnhausen, who helps manage 260 billion euros ($284 billion) at AXA Investment in Frankfurt and owns Porsche shares. ``The danger for Porsche is that their customers, despite being wealthy, are having second thoughts about spending with the generally bad economy and possible war in Iraq.''

    The company's shares fell as much as 38.03 euros to 263 euros. The shares are down 33 percent so far this year, the most of any carmaker worldwide. Over the previous five years, the company's shares had outperformed all rivals.

    ``We won't be able to reach last year's record sales for the 911,'' said Wiedeking.

    In North America, sales of the 911 fell 39 percent in February, after declining the previous two months. Sales of the Boxster declined 35 percent last month. Last year, sales fell 19 percent.

    911 Decline

    ``Where's the floor for the 911?'' said Henrik Lier, an analyst at WestLB Panmure, who rates the company ``neutral.'' ``Everyone knows demand is going to fall, but no one knows how much.''

    The company brought out a revamped version of the Boxster model last year that was not new enough to rejuvenate sales. In the first half of the fiscal year, or August through January, sales of the Boxster fell 8 percent.

    Porsche shares have outperformed other car companies as investors expected demand for luxury goods to be more resistant than overall demand. Investors also anticipated rising sales and profits from the Cayenne.

    ``Porsche is one of the few companies that hadn't really fallen until this year,'' said Werner Lykowsky, who helps manage 5.5 billion euros at Helaba Invest. ``Investors were taking their money off the table.''

    Cayenne Hope

    The new Cayenne sport-utility vehicle should still increase sales and earnings, the CEO said.

    Wiedeking has forecast the company will surpass last year's sales and earnings with the vehicle. One of Porsche's goals with the car was to reduce the dependence on its two main models. Even if sales of the Boxster and 911 fall this year, Porsche should still increase sales and profit with the addition of the SUV.

    For the first six months of the fiscal year, net income rose 14 percent to 102 million euros. Sales rose 20 percent to 2.21 billion euros. Porsche expects to sell a total of 65,000 vehicles this year compared with 54,234 the year before.

    The 340-horsepower Cayenne S is designed to lure buyers from Bayerische Motoren Werke AG's X5, which starts at about 41,600 euros, DaimlerChrysler AG's Mercedes-Benz M-Class, with a base price of about 38,000 euros, and Ford Motor Co.'s Land Rover. Porsche has said it already has orders for at least 25,000 Cayennes, or a year's worth of production.

    The carmaker also displayed the $400,000 Carrera GT sports car at the Geneva car show. It will be built starting in the last few months of 2003 at the company's factory in Leipzig, Germany, where it also makes the Cayenne. Porsche expects to sell 1,500 units through the car's life cycle.


    The model's competitors will be Fiat SpA's Ferrari, Ford's Aston Martin and Audi AG's Lamborghini. The Carrera GT will be more than twice as expensive as a top-of-the line Porsche 911, which costs $180,000.

    To protect North American earnings, Porsche has hedged against changes in the euro-dollar exchange rate through 2006, Wiedeking said. The euro has appreciated 26 percent against the dollar over the last 12 months.

    Re: share chart

    here's something to the topic 'shareholder value'...

    this chart represents the porsche shares development over the last 3 months. it even dropped from 340 EUR to 250 EUR in the last 10 days.



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