THE AUTOEXTREMIST

September 14, 2011

Porsche’s delicate dance.

By Peter M. De Lorenzo

(Posted 9/13, 2:30 p.m.) Detroit. This week marks a special time for Porsche enthusiasts around the world as the German automaker unveils the seventh generation of its iconic 911 sports car at the 2011 IAA Frankfurt Motor Show. Longer, lower, lighter and more efficient, the new 911 is unflinchingly evolutionary, a continuation of all of the traits, characteristics and yes, even some of the quirks that enthusiasts find so endearing and can’t seem to get enough of.

Porsche choosing to unveil the new 911 at the bi-annual Frankfurt show was no accident, obviously, because if there was ever a perfect chance to play to the home crowd it doesn’t get much better than revealing a new 911 in Frankfurt. It’s there where Porsche can remind everyone of its phenomenal and much-decorated history first propelled to greatness by its genius founder, Ferdinand Porsche, and carried to the fore by son Ferry Porsche, and the fact that when it comes to sports cars, especially the iconic German one, there simply is no substitute.

But it’s also quite clear, despite all of the pomp and circumstance that is bound to be a part of the new 911’s unveiling, that Porsche is far from the same company that existed even five years ago, let alone the one envisioned by Ferry Porsche in the early 50s. The company’s transformation has accelerated over recent years, but all of a sudden the dramatic results of its fundamental corporate shift seem radical in scope.

After all, we are now talking about an automaker that’s targeting sales of 100,000 sports cars, sedans and SUVs by the end of this year, in case any romantic notions of “the little car company that could” still existed out there. Porsche’s radical transformation was fueled by the company's shrewdly calculated move to exploit new segments and opportunities, despite purist protestations to the contrary (mine included), and it has paid off handsomely. 

How handsomely? Routinely calling itself “the most profitable car company in the world” for years now, Porsche has been a cash machine of massive proportion, and it will soon take its place at the head table within the VW Group empire — at least when the deal finally gets formalized — so it can exploit the giant auto conglomerate’s resources to even greater effect while aiming for even grander heights of profitability.

But in its quest for profitability, Porsche has created a brave new world for itself consisting of two drastically different hemispheres — diametrically opposed would be closer to the truth — that exist at cross purposes to each other yet contribute to its painstakingly orchestrated whole.

In one hemisphere of Porsche world you have the Cayenne SUV and the Panamera sedan (four-door-coupe in Porsche parlance), seemingly incongruous miscreants that operate outside of the historical Porsche mission of light, purposeful, responsive and innovative sports cars that have been the hallmark of the company since day one.

In the other hemisphere you have the quintessential Porsche, the 911, as well as the Boxster and Cayman models, which are each very true to the sports car mission projected by Ferry Porsche, the one that established the Porsche name as a calling card for motoring desirability around the world.

The differences between the two Porsches are pronounced, no matter how Porsche operatives try to spin it. And the marked differences between the consumers who seek out these Porsches are even more so.

On one side you have the True Believers, the enthusiast zealots within and outside the company who adhere to the Porsche mission focusing on the act and art of driving, and who will keep the faith and keep believing in the core Porsche principles to their last breath.

On the other you have the new wave of Porsche consumerist zealots who aren’t bound by history or looking for an adherence to the founding mission, but who instead are image-conscious status seekers looking to alight on whatever brand is acceptably hot and of-the-moment.

And make no mistake: Porsche has done a superb job in courting these disparate factions, appeasing the hard-core faithful with a string of lusciously desirable sports cars that ring true to the Porsche mission, while energizing the consumerist hordes hungry for their next fix of brand adrenalin with an SUV and four-door that still march to the different drummer that defines Porsche. At least enough, anyway.

This past week I talked with a small sampling of Porsche dealers across the country and remarkably enough I heard a similar refrain: “We can’t keep the Cayenne in stock. As a matter of fact we tell our customers that if they want one they have to act quickly because they don't stay on the lot for very long," as one dealer told me. His comments were echoed by others as well. And the recently new Panamera is almost equally coveted, drawing in a host of intenders desirous of the famous Porsche crest, but who need the sedan-like practicality of four doors.

It’s clear that these two Porsche models are contributing massively to Porsche’s coffers and because of that, as some have correctly argued, Porsche is able to turn up the wick on its enthusiast machines making them even more desirable, if that’s even possible.

A tacit acknowledgement of that fact is going to manifest itself in just a month’s time when Porsche stages one of the most stunning automotive events orchestrated by any manufacturer, the Rennsport Reunion IV, October 14-16, 2011, at Mazda Raceway Laguna Seca in Monterey.

It’s there that the 48-year legacy of Porsche Motorsport will be on display, with most of the greatest Porsche racing cars known to exist on hand, including some rarities from the Porsche museum. The new 2012 Porsche 911 Carrera will also be on display for the first time in North America, which will be a treat for the True Believers, since it doesn’t arrive at dealers until next spring.

And it could be argued that the wherewithal to stage such elaborate events as the Rennsport Reunion is a direct result of the huge impact on Porsche’s bottom line of just two vehicles: the Cayenne and the Panamera.

Porsche is performing a delicate dance in its attempt at mollifying both of these groups while keeping its prodigious profit stream flowing unabated. And as long as they can keep the fragile balance between the consumerists, who lust after the Cayenne and Panamera, and the True Believer enthusiasts who crave the 911, Boxster and Cayman, then Porsche’s scintillating run of success looks like it will be in place for many years to come.

And that’s the High-Octane Truth for this week.

(Porsche)

A scene from the Rennsport Reunion III at Daytona International Speedway in November of 2007.

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