What would I do if I made the decisions at Porsche?
Barrett raised some good points in a response to my note regarding exclusivity. I guess he asking me what would I do if I ran Porsche. It is quite simple.
First, know what type of company I am. A terrific sport car company catering to a market niche which is small, affluent and passionate about their cars. I would not want to be a generalist company catering to the masses and hoping to compete with BMW, MB, GM, Ford as Porsche appears to be trying to do.
Second produce two models. The base 911 which would have the performance of today's TT (415hp) and priced in the 110,000-115,000 range. Based on my reading, the TT was the biggest profit generated for Porsche. The second model will be a TT with a minimum of 500hp and would be the elite of the sport car world except fpr the supercars. The price on this car would be in the 150,000 range.
Third, create a separate division and call it (whatever) which is dedicated to working with other manufacturers to produce the Cayenne, Boxster and the four door sedan. Possibly it would be in conjunction with VW. The car can be sold as a amalgamation of the engineering of both companies.
Porsche nevertheless would remain focused on producing the world's best sport car. The price point of course would lessen demand but profits would remain high because your limiting R&D to sport cars and sharing the rest with another company. Profit margins on the two models will be substantial but the performance and relative exclusivity would make the car worth it.
I give this advise to Porsche because I am feeling magnanimous today.
First, know what type of company I am. A terrific sport car company catering to a market niche which is small, affluent and passionate about their cars. I would not want to be a generalist company catering to the masses and hoping to compete with BMW, MB, GM, Ford as Porsche appears to be trying to do.
Second produce two models. The base 911 which would have the performance of today's TT (415hp) and priced in the 110,000-115,000 range. Based on my reading, the TT was the biggest profit generated for Porsche. The second model will be a TT with a minimum of 500hp and would be the elite of the sport car world except fpr the supercars. The price on this car would be in the 150,000 range.
Third, create a separate division and call it (whatever) which is dedicated to working with other manufacturers to produce the Cayenne, Boxster and the four door sedan. Possibly it would be in conjunction with VW. The car can be sold as a amalgamation of the engineering of both companies.
Porsche nevertheless would remain focused on producing the world's best sport car. The price point of course would lessen demand but profits would remain high because your limiting R&D to sport cars and sharing the rest with another company. Profit margins on the two models will be substantial but the performance and relative exclusivity would make the car worth it.

I give this advise to Porsche because I am feeling magnanimous today.
