Porsche CEO predicts automaker will keep growing.

Yannis · 12-10-2005, 06:43 AM

Porsche CEO predicts automaker will keep growing

To the horror of some Porsche purists, CEO Wendelin Wiedeking has been transforming the German sports car manufacturer.

In 2003 he added the Cayenne SUV to the lineup. Now he will add the Cayman coupe. The Cayman, built by coachbuilder Valmet of Finland, went on sale in Europe last month and debuts in the United States on Jan. 14. Porsche has approved the four-door Panamera sedan for production in 2009.

Wiedeking, 53, spoke with Editorial Director Peter Brown, Editor David Sedgwick, News Editor Dave Guilford and Staff Reporter Diana T. Kurylko at the Frankfurt auto show in September.

You are preparing to launch the Cayman coupe. What are its prospects?

I believe it will be a hot seller.

What sales level do you expect for the United States?

The numbers aren't saved in my mind. All I know is that they are already asking for more. Officially, we are talking about 10,000 units globally on a yearly basis for the Cayman. I believe we can sell more.

What are the economics of 10,000 units?

It is built on the Boxster platform. We have some more ideas for the Cayman. That means more products. So in the future there could be more volume -- it is clearly a top-down introduction. For assembly, we do systems components in Stuttgart, and a lot of trucks are on their way to Finland each night. Valmet is doing a great job.

What is the thinking behind Cayman? Why does Porsche need it?

Price-wise, there was a big gap between the Boxster and the 911 -- 20,000 euros ($23,573), which is a lot of money. So we looked at the possibilities of expanding our sports car business besides Cayenne and other activities. We found the potential.

Design-wise and technically, the Cayman is something special, and it will make it. It is not only a coupe based on the Boxster; it is a specialty car. Sure, you use a lot of components from the Boxster, but there are enough new things to build its own product substance and customer base.

Where will the Panamera four-door sedan fit in?

That is a new segment. Worldwide volume is about 1 million cars for the premium sedan and the sport coupe segment. We'll have a Porsche where four people can sit very comfortably and with a huge amount of space in the trunk. It has enough horsepower, and driving will be enthusiastic and a lot of fun. The segment is there; look at Maserati and DaimlerChrysler and all the others.

There is potential, and if we want sales of 20,000 a year in a segment of 1 million, we can do it. The strategy is clear. We want to share a lot of components with our sports car. The Panamera will also define for the future a lot of systems and components for the next 911. We will be able to define what we will use today and define tomorrow's systems to have higher volume and to have our costs under control.

On the cost side, what does the Cayman do to your marketing budget?

The Cayman is an extra marketing budget. You can't use the 911 or Boxster budget.

How will you position the Cayman? What is the key message?

The key message is that it is a very sporty, very aggressive and fun to drive. The customer base is younger, 45 years old and under, and this market is there.

Are you going to do anything special to market it?

There will be special activities in the future, but it is too early to talk about them.

You made it a point when announcing the Panamera project that you will do it yourself. Had there been discussions with other carmakers?

No, from the beginning it was our clear strategy that we wanted to do it ourselves and to use component systems out of the sports cars. We have to manage costs. Even in this segment, you have to control your costs to make such a project profitable.

You announced there will be a hybrid Porsche Cayenne. What has happened in the past year? There was a lot of resistance to hybrids in the German industry and now you have all announced projects.

There are a lot of different ways to travel to Rome. The German industry did a lot of things to improve fuel consumption. Even at Porsche, within the last 10 years we have reduced our fuel consumption an average of 15 percent for the sports cars. If you look at Cayenne fuel consumption per horsepower, it is absolutely benchmark. We know how to do it. We know we have to look at the environmental issues. We've been doing this for decades -- it is not unusual.

What are the issues with hybrids?

The problem with hybrid systems is the weight. If you talk about a full hybrid system for the Cayenne, it is 200 kilograms (441 pounds). It is a lot. It is really heavy.

The other side is you need battery systems that load and unload quickly and have a much longer life cycle. You need reliable systems for 60,000 or 70,000 miles.

These are the key issues. There are now systems available that allegedly can do all this -- but they are not really proven. We have to see what is really proven. I hear there are some problems with some hybrid cars on the market. We have to check this.

I believe the idea is good. I said a year ago that officially we are looking at this issue, and now we have decided to do it.

How do you offset the extra weight?

That is details. I do not want to talk about product substance today. We'll talk about this the day we introduce it on the market. We have to fulfill the customer's need, and if the customer is looking for such concepts, we will do it.

Is the hybrid only for the United States?

Porsche never did a job only for one market. We are always a worldwide player.

And you'll have a hybrid by 2008?

No, we're talking about this decade. We must now do everything for the Cayenne, and the Panamera is another big job we have to do. Then we can look at what's next.

What segments would you rule out for Porsche?

It doesn't make sense to talk about another vehicle. We have now given a long enough time frame for the public. Internally, we are generating some ideas.

Before you announced the Panamera you said you were weighing production of other concepts. Can you tell us which ones?

No.

How much more will Porsche grow?

If you look at last year's figures, with the new and the old 911 we increased sales by 17 percent for the fiscal calendar. The 911 is our basic platform for this organization. It must be and will be successful. There are a lot of further ideas for the 911 in the future, and in time we will talk about some other products.

Didn't you set a target of increasing sales to 200,000 units? Will the U.S. market continue to account for 40 to 45 percent of all Porsche sales?

We'll grow to 200,000 within the next two to three years. In the last fiscal year we were below 40 percent in the United States because there were markets where we have grown so dramatically -- such as the Middle East -- we sold 3,800 cars, and seven years ago we only sold 400.

Will you be hitting the target in three years with the Panamera?

No, without the Panamera.

Will there be a next-generation partnership for the Cayenne with Volkswagen?

We are already at the state in the contract where we define the second generation that we will do together. That is fixed already. It makes sense for VW, as well as for us.

Source: - ONLY REGISTERED AND ACTIVATED USERS CAN SEE ALL LINKS - CLICK HERE TO REGISTER

12-10-2005, 06:43 AM	#1 (permalink)
Yannis Philosopher Join Date: Sep 2005 Posts: 7,198 My Mood: Thanks: 1,243 Thanked 1,231 Times in 703 Posts	Porsche CEO predicts automaker will keep growing. Porsche CEO predicts automaker will keep growing To the horror of some Porsche purists, CEO Wendelin Wiedeking has been transforming the German sports car manufacturer. In 2003 he added the Cayenne SUV to the lineup. Now he will add the Cayman coupe. The Cayman, built by coachbuilder Valmet of Finland, went on sale in Europe last month and debuts in the United States on Jan. 14. Porsche has approved the four-door Panamera sedan for production in 2009. Wiedeking, 53, spoke with Editorial Director Peter Brown, Editor David Sedgwick, News Editor Dave Guilford and Staff Reporter Diana T. Kurylko at the Frankfurt auto show in September. You are preparing to launch the Cayman coupe. What are its prospects? I believe it will be a hot seller. What sales level do you expect for the United States? The numbers aren't saved in my mind. All I know is that they are already asking for more. Officially, we are talking about 10,000 units globally on a yearly basis for the Cayman. I believe we can sell more. What are the economics of 10,000 units? It is built on the Boxster platform. We have some more ideas for the Cayman. That means more products. So in the future there could be more volume -- it is clearly a top-down introduction. For assembly, we do systems components in Stuttgart, and a lot of trucks are on their way to Finland each night. Valmet is doing a great job. What is the thinking behind Cayman? Why does Porsche need it? Price-wise, there was a big gap between the Boxster and the 911 -- 20,000 euros ($23,573), which is a lot of money. So we looked at the possibilities of expanding our sports car business besides Cayenne and other activities. We found the potential. Design-wise and technically, the Cayman is something special, and it will make it. It is not only a coupe based on the Boxster; it is a specialty car. Sure, you use a lot of components from the Boxster, but there are enough new things to build its own product substance and customer base. Where will the Panamera four-door sedan fit in? That is a new segment. Worldwide volume is about 1 million cars for the premium sedan and the sport coupe segment. We'll have a Porsche where four people can sit very comfortably and with a huge amount of space in the trunk. It has enough horsepower, and driving will be enthusiastic and a lot of fun. The segment is there; look at Maserati and DaimlerChrysler and all the others. There is potential, and if we want sales of 20,000 a year in a segment of 1 million, we can do it. The strategy is clear. We want to share a lot of components with our sports car. The Panamera will also define for the future a lot of systems and components for the next 911. We will be able to define what we will use today and define tomorrow's systems to have higher volume and to have our costs under control. On the cost side, what does the Cayman do to your marketing budget? The Cayman is an extra marketing budget. You can't use the 911 or Boxster budget. How will you position the Cayman? What is the key message? The key message is that it is a very sporty, very aggressive and fun to drive. The customer base is younger, 45 years old and under, and this market is there. Are you going to do anything special to market it? There will be special activities in the future, but it is too early to talk about them. You made it a point when announcing the Panamera project that you will do it yourself. Had there been discussions with other carmakers? No, from the beginning it was our clear strategy that we wanted to do it ourselves and to use component systems out of the sports cars. We have to manage costs. Even in this segment, you have to control your costs to make such a project profitable. You announced there will be a hybrid Porsche Cayenne. What has happened in the past year? There was a lot of resistance to hybrids in the German industry and now you have all announced projects. There are a lot of different ways to travel to Rome. The German industry did a lot of things to improve fuel consumption. Even at Porsche, within the last 10 years we have reduced our fuel consumption an average of 15 percent for the sports cars. If you look at Cayenne fuel consumption per horsepower, it is absolutely benchmark. We know how to do it. We know we have to look at the environmental issues. We've been doing this for decades -- it is not unusual. What are the issues with hybrids? The problem with hybrid systems is the weight. If you talk about a full hybrid system for the Cayenne, it is 200 kilograms (441 pounds). It is a lot. It is really heavy. The other side is you need battery systems that load and unload quickly and have a much longer life cycle. You need reliable systems for 60,000 or 70,000 miles. These are the key issues. There are now systems available that allegedly can do all this -- but they are not really proven. We have to see what is really proven. I hear there are some problems with some hybrid cars on the market. We have to check this. I believe the idea is good. I said a year ago that officially we are looking at this issue, and now we have decided to do it. How do you offset the extra weight? That is details. I do not want to talk about product substance today. We'll talk about this the day we introduce it on the market. We have to fulfill the customer's need, and if the customer is looking for such concepts, we will do it. Is the hybrid only for the United States? Porsche never did a job only for one market. We are always a worldwide player. And you'll have a hybrid by 2008? No, we're talking about this decade. We must now do everything for the Cayenne, and the Panamera is another big job we have to do. Then we can look at what's next. What segments would you rule out for Porsche? It doesn't make sense to talk about another vehicle. We have now given a long enough time frame for the public. Internally, we are generating some ideas. Before you announced the Panamera you said you were weighing production of other concepts. Can you tell us which ones? No. How much more will Porsche grow? If you look at last year's figures, with the new and the old 911 we increased sales by 17 percent for the fiscal calendar. The 911 is our basic platform for this organization. It must be and will be successful. There are a lot of further ideas for the 911 in the future, and in time we will talk about some other products. Didn't you set a target of increasing sales to 200,000 units? Will the U.S. market continue to account for 40 to 45 percent of all Porsche sales? We'll grow to 200,000 within the next two to three years. In the last fiscal year we were below 40 percent in the United States because there were markets where we have grown so dramatically -- such as the Middle East -- we sold 3,800 cars, and seven years ago we only sold 400. Will you be hitting the target in three years with the Panamera? No, without the Panamera. Will there be a next-generation partnership for the Cayenne with Volkswagen? We are already at the state in the contract where we define the second generation that we will do together. That is fixed already. It makes sense for VW, as well as for us. Source: - ONLY REGISTERED AND ACTIVATED USERS CAN SEE ALL LINKS - CLICK HERE TO REGISTER Last edited by Yannis; 12-10-2005 at 06:49 AM..

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