Porsche’s U.S. sales have taken a hit in recent months but, overall, the German sports car maker is fairing the economic storm pretty well. Because of its success, Porsche is taking a critical viewpoint of recent bailout packages, with its stance clearly on the opposite end of the spectrum from most lawmakers.
Porsche CEO Wendelin Wiedeking recently spoke at an event in Frankfurt, Germany where he basically slammed the idea automakers receiving bailout packages from their respective governments. In so many words, Wiedeking said automakers were willing to keep profits private in good times, but want to share the losses now that things aren’t so rosy. Wiedeking was also not fond of the idea of using taxpayer money to fund the bailouts.
On the other side of the coin, Wiedeking said Porsche shareholders will be “rejoicing” about the company’s upcoming financial results.
However, Wiedeking tune could change in the next few months as Porsche is set to take a majority stake in Volkswagen. While it may be easy to build extra profits into a $100,000 sports car, it gets a little trickier on an entry-level hatchback. Even tougher will be the transitions from a small company to a global giant – just ask Toyota.
10/16, 11:42 AM
posted by:
RaineMan
Finally… one auto manufacturer with some sense.
I don’t understand our society… we privatize gains, so the rich get richer… yet we socailize losses so everyone gets to feel the pain. Completely illogical.
10/16, 11:42 AM
posted by:
johnnycanuck
I had no idea Halloween was so popular in Germany. Look, they even dress up their cars.
10/16, 11:47 AM
posted by:
Lariat Luxury Locomotive Liner No.3
Bailouts are b-u-l-l-s-h-i-t!
10/16, 11:58 AM
posted by:
A4
i think volkswagen needs to go valkyrie on porsches ass and leave a briefcase bomb at the top to take out hitler… i mean porsche
10/16, 12:15 PM
posted by:
Lariat Luxury Locomotive Liner No.3
@A4, remind me to have you screened when you visit my offices.
10/16, 12:26 PM
posted by:
El Aleman
I’m with RaineMan.. Also if companies know they have a safety net, they would miss out on a competitive advantage if they turned such asn offer down.
Porsche has been on that route for at least all of Wiedeking’s reign though, they never accept subsidies and such either.
10/16, 2:21 PM
posted by:
Z06ified
I agree with the LLN writer. Porsche always had it easy in turning a profit with their huge price premiums on niche sports cars. In many cases, they sell the brand name rather than the car. That’s pure profit.
Porsche has no right to comment if they’re not building mainstream cars at $20k price points at a profit. Any half-witted manufacturer can produce a car like the 911 turbo at a huge profit with a $130k price tag.
10/16, 6:43 PM
posted by:
stick2clutch
@ Z06…. I understand your logic but give credit where it is due. Porsche has always stood for something and they’ve done it right. They built up their brand and don’t water it down like others. They might be soon but not as of yet. For example GM, and don’t get me wrong I’m pulling for the big three to get through this crisis as long as they learn their lesson and build better, desirable cars as a result. But back to the point, when the $50K Escalade was first released you could find the same cheap ass components you’d find in the $13K cavalier at the time.
10/17, 10:51 AM
posted by:
DBro
Amen, I don’t disagree that they probably aren’t feeling their margins squeeze as tightly as other manufacturers, but they build with freaking integrity, and they would never let themselves widdle down to the point of bankruptcy… They know how to build quality cars, and run a company.
10/17, 4:51 PM
posted by:
sharpie
“automakers were willing to keep profits private in good times, but want to share the losses now that things aren’t so rosy”
Exactly! In economic bad times, all companies turn into communists!