New CEO to tackle smaller entry-level Porsche as first challenge

2011 Porsche Boxster Artist Rendering / Copyright by Larson / Road & Track

Porsche is facing decline sales of the Boxster and Cayman models

Porsche's new CEO Matthias Mueller has work to do if he's going to achieve the sales goal the storied sports car maker has set for itself.

When Mueller, 57, takes over as CEO of Porsche AG on October 1, his first assignment will be to revive Porsche's entry-level segment which is facing declining sales. Sales are down 12 percent in the nine months through April for the Boxster and Cayman models combined. In February, Porsche introduced the Boxster Spyder with a starting price of €53,100 ($66,900).

Porsche wants to expand its sales from 100,000 units a year currently to 150,000 units globally by 2013. To do that, Porsche will double the number of models in its lineup from four to eight. It may do that by adding an entry-level model below the Boxster as well as a small SUV based on the VW Tiguan.

"We have to make progress with Porsche. Mueller is the right person to deliver it," said VW Group CEO Martin Winterkorn at a press event earlier this week.

Mueller was formerly the head of product management at VW's Audi brand up until 2007. He's currently in charge of product planning and management at VW Group.

Source: autonews.com (sub req)

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SirTristan

5 cars in the lineup is already pretty crowded. DAMN IT, don't do this! Panamera Coupé would work but ONLY as a body option (such as 911 Cabriolet and Targa), not separate model. but Tiguan?! They should never do that. I'd rather have a rebadged Scirocco with 4Motion and 3.6 V6!

July 8, 2010 3:02 pm

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6 replies

Edison

I totally agree with you. If they were suprised that Porsche hasn't lost its prestige by building an SUV and sedan, they definitely will by going downmarket with non-core products. Sometimes these CEOs don't realize that more product lines don't always equate to more profit. It seems that these guys always measure a company's success on how big the company is able to get. We've seen how good that did GM.

July 8, 2010 3:43 pm

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Mikeado

Y'know, the Panamera and Cayenne are their best-selling models in many regions. A Panamera Coupé could work as a New 928 with a few design changes. More of a Panamera-based coupé than a direct version. As for sports cars, forget not the 918 Spyder.

July 8, 2010 3:50 pm

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Edison

Agreed, I just think that Porsche may lose their valuable identity and reputation in their search for volume that they may not need to do well. They've been doing fine for the better part of this last decade. The economic slump has affected Porsche just as it has other luxury manufacturers. Plus, you have to draw a line in the sand at some point. For example, would Porsche represent performance and luxury if they were to build a competitor to the Smart ForTwo? I'm not so sure. At least the Cayenne and Panamera are arguably the performance benchmarks in their relative sectors. Leave mini-SUVs and hot hatches to VW, et. al. I think.

July 8, 2010 5:04 pm

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Francois

Entry level model below Boxster??? And the main rivals will be Megane Coupe, Kia Pro'Ceed!!! It's a ridiculous idea making cheap Porsche. The quality will be lower, the engines from VW's probably. And finally a small SUV. Porsche wants to earn taking off the customers from BMW X1 and MB GLK. Porsche had lost its only exclusive line of models years ago and nothing returns that.

July 9, 2010 2:10 am

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Mikeado

How low do you think the Boxster is? It's going to be more on a level with, well, I was going to say Honda S2000, but that's dead. So more like an MR2- oh wait, that's dead. MX-5 rival maybe? Ah screw it, it'll probably have 200-240PS - the Boxster 2.9 has 255hp, so it won't get too close to that - be mid-engined and bring all the poise and balance and perfectionist engineering of a Porsche to people who can't even afford that Boxster. A re-badged BlueSport. Priced to compete with the Lotus Elise.

July 9, 2010 6:02 am

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scratchy996

@ Edison , Porsche's prestige comes from the race track and the quality of their products, not from the exclusivity of their cars. they already had cheap models , 912, 914, 924, 944, 968 and it didn't ruin their prestige. they made a SUV and a saloon and it didn't ruin their prestige. they made tractors and military vehicles and it didn't ruin their prestige. as long as they build quality products they will be OK. entry models will bring younger people to the brand , people that will buy more expensive models when they start to earn more. also someone with a Cayenne or Panamera might think of buying an entry level model Porsche as a second car instead of another brand.

July 9, 2010 6:19 am

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Mikeado

As long as it's based on the VW BlueSport, that's fine. It could be a "neue 914". I don't like the Tiguan-clone Mini-Cayenne (perhaps call it Dakar or Transsiberia?). One Porsche off-roader is quite enough.

July 8, 2010 3:46 pm

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panamera789

it's quite normal boxster and cayman sales are going down .. they have been around for too long... they just need to come up with next generation models.. i think boxster is entry-level enough for a premium brand like porsche..

July 8, 2010 5:13 pm

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porschecarreragtmay6

I think it's just the Cayman/Boxster are too standard to be priced that high. A Cayman S nicely optioned will easily cost as much as a 911. Porsche really needs to set the Cayman/Boxster apart from the 911s. They need to be lighter, lower, less power, less price, some more models, such as maybe a Targa, Turbo, or even 4WD models. Possibly a base price Boxster of 35k, and the top of the line being 50k. I don't know. Whatever Porsche does, I'm sure it'll be great. I love seeing new Porsches... Boxster Cayman 911 Panamera Cayenne Small Cayenne 928 356 8 Models!!

July 8, 2010 8:43 pm

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ALMERAIKHI

SUICIDE!! I say somthing like a panamera coupe just like mikeado said and make it a hard top convertible for the sl and the new 6 series. and a suv coupe to tackle the new land rover equove....merge the two models cayman and boxster into one model with coupe and convertible option. ....

July 8, 2010 6:21 pm

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accousticjama

This is exactly what I feared,VW are going to degrade & cheapen Porsche's legendary name & image.

July 8, 2010 6:51 pm

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1 reply

scratchy996

Porsche are planing this since before the whole VW fiasco.

July 9, 2010 6:22 am

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schizo

The Cayenne is enought SUV for a premium car maker...not the word sportscar maker is no longer applied. A Tiguan Class SUV/SAV whatever you call it will seriously damage the brand. Leave such a car to Audi... A new 914 that i easily tunable for track days is welcome...

July 8, 2010 10:04 pm

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Prancing Horse

Even if Porsche builds a model cheaper than the Boxster with the right options it will cost as much as a 911 S.Porsche needs to make price points on their models but will never happen because much like the BMW delusional fanboys the Porsche fanatics will buy anything with their precious badge.

July 9, 2010 12:07 am

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1 reply

panamera789

didn't u read that sales are down 12%? i think porsche won't survive until now if all their are bought by only the 'fanatics'. i love the brand but who don't seriously but i am pretty sure i won't be interested in their mini suv or mini van whatever.. i would most want to see them making a panamera coupe convertible to compete with stupid dropdead..

July 9, 2010 12:45 am

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Aesthetics

think what porsche should do is lower the cost to build the boxter and grow a gap between the boxter and cayman range. markets porsche should explore, expensive super car performing above the 911 range, a mid engine turbocharged v8 pdk 4wd series...but not too expensive unlike the carrera gt/918 spyder, the m6 market with a new 928(rumours are going around), a smaller panamera like an audi a5 sportback as a spiritual successor to the 924/944 range the way the panamera is to the 928.

July 9, 2010 12:46 am

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the boxster and cayman are very good cars, but too conservative. yes, the porsche brand image and die hard 911 fans can stick with their classic lines, but porsche needs to inject excitement in the boxster/cayman range to keep the buyers fresh. they can use their cayenne range to draw money from posers. a tiguan porsche is a disaster.

July 9, 2010 2:31 am

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1 reply

ght

M!Are you aware that the porsche cayenne is a touareg cayenne?if you say that a tiguan porsche is a disaster then the cayenne is a disaster too

July 10, 2010 3:46 pm

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flyingrider

If you guys (if you really do) want to drive 911 in the future you have to accept, that other carlines will show up to have the money to build and sell that 911. I feel good about Panamera Coupe, Panamera, Cayenne II, Cayman/Boxster, new 356, 928 and BabyCayenne. Whatever they want to do. If die quality is good and the car drives/lookes like a real Porsche: It keeps the 911 alive...only because of its legend, the concept itselfe is overaged.

July 9, 2010 4:43 am

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flyingrider

and also..do you really think porsche can sell cars in the USA after 2016 without changing the engine concepts?! Its all about politics, they can't lissen not to wishes of old costumers. Without changes, no Porsche will get selled in future

July 9, 2010 4:47 am

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os993

Porsche has lost its prestige status. There was a time in the 90s, when if you wanted a prestige German sportscar, you chose a Porsche 911 or Mercedes SL. The 911 has had its day, the Audi R8 has taken its place. The Merc SL, has been surpassed by the SLS. Modern Porsche engine issues are well documented. The prestige and reliability is long gone.

July 9, 2010 6:39 am

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panamera789

the r8 has definitely not taken its place... for me.. i think i will need at least 20 more years to like audi more than porsche... again.. the current SL has been around for too long... when they come out with new one which resembles the SLS design, it will definitely a hit.. r8 looks fresh and modern in the 1st year but it now just looks like a sneaky rat, especially dark grey ones.. .i don't see it can replace the position of either SL or 911... they have been around for generations for a reason.. and by following audi's track record, looks like that the r8 will look like the same sneaky rat for 50 more years...

July 9, 2010 5:03 pm

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911fnatic

This isn't anything unusual, Porsche stuck an Audi engine in their 924 a while ago and the 944 was a pretty entry-level car itself. Porsche cars lost their value years ago when they stopped being hand built and mass-production/cheap materials started to be used. Thats why you see models 993 and before maintaining higher values than successive models.

July 9, 2010 7:47 am

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ifraan

Porsche should do a "Porsche M3 sedan" . Consider this thought... a tight handling, fast, 4 door not-911 design theme sports sedan. This is something I would buy. M5 is too much. M3 is too young and BMW brand not premium enough. And 911 is too small. Maserati Biturbo is what comes to mind as a past reference.

July 9, 2010 10:32 am

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Bush Master

Mid-engine 2.0-liter TSI Boxer-4 for the entry level porsche pls! Like the VW 1.4 TSI

September 7, 2010 3:31 am

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