Porsche was a brand in existential crisis. Until he found his salvation in the SUV and the electric car

  • 40

Porsche is about to take one of the most important steps in its history: going public. The company faces this new stage for its financing with the awareness that electrified vehicles and its software are its main values. Once again, Porsche finds its future far from the purists.

90’s. The 1990s were not easy for Porsche. The brand managed sales volumes at the beginning of these years of between 15,000 and 20,000 vehicles sold. In your offer: Porsche 911, porsche 968 Y porsche 928. A very short range of products that began to generate laziness among buyers.

With the Porsche 911 becoming a timeless vehicle and without achieving great sales of its alternative models, the company was close to disappearing at the end of the 90s. A brand that was beginning to be seen as part of the past and that was about to become such.

removing complexes. Willing to turn the situation around, Wendelin Wiedeking, CEO of the brand at the time, made the risky decision to break his market with the Porsche Boxstera two-seater convertible and boxer engine that maintained the hallmarks of the brand but, above all, made its price much cheaper to sell large volumes.

The objective was to get closer to a much younger public that could enjoy a Porsche, even at the risk of getting rid of that exclusive, elitist and inaccessible brand image. Basically, it was a move to save a lot of money with each unit, since the convertible shared many elements with the porsche 911 996which significantly reduced manufacturing costs.

Porsche Boxster 2001 1600 06

And the boom arrives. The Porsche Boxster is a success for the firm that can already count on an economic base on which to make its leap into the void. It’s all or nothing. The SUV is in fashion and Porsche presents the Cayenne. A model that would immediately become its best-selling product and that would “popularize” the brand.

According to what they say in motorpassionthe brand came to study the possibility of building a minivan, but the American division (the most successful at that time) pressed to build an SUV and their wishes were listened to.

Porsche Cayenne 2003 1600 01

repeating play. Although the Boxster had built a solid financial base to go on and the Mercedes ML and BMW X5 had made it clear that there was a gap in the market for the luxury SUV that boasts great off-road skills, building a platform exclusively for the Cayenne was unthinkable.

And without an in-house base, Porsche looked to Volkswagen. Same chassis but different engines and tuning. The Porsche Cayenne and the volkswagen touareg they were built under the same pillars, but the products were completely different. In a very short time, the Porsche customer was no longer a very wealthy man who loved the Porsche 911, the roads had been filled with Porsche Boxsters and, above all, Porsche Cayennes.

Convincing the most enthusiastic. If Porsche had to reinvent itself with the SUV, the brand has not doubted for a moment that it should do the same with the electric car. Aware that the decision could alienate their most loyal followers, they have chosen two parallel paths.

The first is to design a car ahead of its time like the Porsche Taycan. In 2019, nobody could imagine that an electric sports car could be made with that power, versatility and, surprisingly, live up to the Porsche name.

The second path is the same that was followed to sell the Porsche Cayenne. Do we want a Porsche 911 and its versions designed by and for the most purists? The Taycan, as the Cayenne already did, will allow these more niche and low-profit models to be financed, but which give a lot of added value in terms of brand image.

to more. The path taken seems to have been the correct one. At the moment, Porsche is selling more than 300,000 units a year, of which 41,296 were Porsche Taycan in 2021. And the pace does not slow down, with the broken supply chain, this semester Porsche has already placed other 18,900 units.

The good sales results have indirectly caused the departure of Herbert Diess from the Volkswagen Group. The brand is counting on the horizon to launch a great sedan that rivals the Mercedes EQS or the BMW i7 and arrives alongside the next great Audi model. Also an intermediate stop with an electric Porsche Macan and the Audi Q6 etron. Delays caused by complications in software development led to the manager’s resignation.

Porsche has achieved unexpected success with its first electric car and is going for more.  This is how he plans to make it the hub of his business

a key moment. To continue growing and even be one of the leaders when it comes to financing the Volkswagen Group, Porsche is once again looking at its less traditional audiences. The firm has known for a long time that the European decision to bet on the electric car is firm and irrevocable. It has managed to pressure to keep combustion cars powered by synthetic fuels, but is aware that, if sold, these will be the least.

Along the way, they expect that half of their sales in 2025 will already be electric and that by 2030 80% of them will be. Key figures for investors to give their support to a company that hopes to go to market with a Valuation of up to 85,000 million of euros.

Porsche is about to take one of the most important steps in its history: going public. The company faces this…

Porsche is about to take one of the most important steps in its history: going public. The company faces this…

Leave a Reply

Your email address will not be published.