[TopGearNL]

Originally Posted by dani_d_mas December 7, 2006 Breakfast with Porsche: Industry News from the Top This morning, I had the opportunity to break bread with Peter Schwarzenbauer, the president and C.E.O. of Porsche Cars North America. Not a bad gig—his or mine, actually.Unlike many auto executives, Schwarzenbauer was able to announce record sales, with Porsche selling 7.2% more through November than last year (a record-breaker itself). He has every reason to expect that things won’t go down the toilet in the remaining three weeks of 2006. But our conversation covered more ground than just sales numbers. Schwarzenbauer is a very bright, articulate and candid man, and his thoughts about the industry—and Porsche’s little corner of it—are illuminating. —Don Chaikin Porsche will not introduce an “entry-level” model priced below the Boxster. Yes, Schwarzenbauer admits, a Boxster may not be most people’s idea of entry-level, but it is the bottom of the Porsche ladder and must remain so. In reality, he pointed out, the real entry-level Porsche model is a used one—though he’d prefer we say “certified pre-owned.” As for various rumblings around the press that the Cayenne is/was a disappointment, Schwarzenbauer flatly disagrees. He said Porsche hoped to sell about 12,000 Cayennes a year. As the current model is being phased out—the new Cayenne is due in March—the Porsche SUV has averaged 15,000 sales per year over its four-year life cycle. Schwarzenbauer also notes that the vast majority of Cayenne buyers did not trade in their Porsche sports car to buy the SUV. Looking to the future, Schwarzenbauer feels that the next generation of car buyers will be far less brand-loyal than the current generation. Porsche buyers, overall (it varies greatly by model) are about as loyal as the industry average. (About 45% of Porsche buyers are repeat owners , compared to 48% for the entire industry.) Yes, Porsche is working with VW and Audi to develop a hybrid, which most likely would go into the Cayenne, due “before 2010.” Schwarzenbauer says adamantly, however, that Porsche will not go diesel. Finally, Porche’s chief feels that the incentives game being played by almost every other manufacturer—Porsche has no incentives on anything—will eventually lead to the ruination of the industry. He points out that it’s critical for the consumer to realize that every time he or she buys a car based on incentives, it lowers the value of that car and those bought previously by everyone else. Popularmechanics.com So no entry-level Porsche below the Boxster, and a hybrid Cayenne before 2010

Sounds good!