News - Porsche
Porsche to double-down on dealerships
Growth target puts pressure on Porsche salesrooms to match pace
24 Apr 2013
By BARRY PARK
PORSCHE will look at expanding its network of Australian showrooms after unveiling an ambitious plan to double sales in the region.
Porsche Cars Australia public relations manager Paul Ellis told GoAuto that its aim to increase annual sales to about 2500 units a year - well up on the 1350 sales the luxury sports car brand pegged in 2012.
“There might be opportunity for one or two (new dealerships) down the track, but certainly not in the short term,” Mr Ellis said. “What it means for our dealers is that they are fully aware that there is a requirement for them to expand their facilities to make sure that they’re prepared, from a sales perspective, to have enough showroom space.
“From the service perspective (they need to ensure) there’s enough hoists at the back of the business to handle this sales increase.
“So there is an obligation and a requirement of our dealers to be ready to take advantage of the extra business,” he said.
Most of the growth in Porsche’s sales is expected to come from the Macan compact soft-roader, due next year and expected to slip in under the $100,000 mark when it goes on sale here - making it the cheapest Porsche available.
Mr Ellis said the extent to which Porsche’s existing 12 national dealerships would have to plan for the extra capacity would depend on a number of factors, including the size of the landholding.
“Some of them may have to extend, some may have to invest more money into the dealerships.
“How they do that is on a case-by-case basis because one dealer may have enough real estate, another dealer may not.” Mr Ellis said because each dealership was a privately owned business, Porsche would not be helping them expand.
“They have their own income streams, and it is up to them (to manage the expansion). It’s a big opportunity for all these dealers to increase volume, so they have to invest in the opportunity.” Mr Ellis also said the increased number of Porsches sold in Australia would not affect the sports cars’ traditionally strong residual values come trade-in time.
“I don’t necessarily think volume means oversupplying,” he said. “What you’ve got to be careful of is matching supply with demand. There’s no use having more supply than there is demand, and we think the natural demand for cars will be there, and we’ll ensure that it’s natural demand that is there.
“With Macan, and with the incremental growth we will get with (wide-reaching cuts to) pricing, it will not be oversupplying the market.” Mr Ellis said pricing cuts announced to the Porsche range yesterday — with up to $36,300 shed from some models — already reflected what buyers were negotiating in showrooms.
“Over the last six months, transaction prices on the 911 have been close to, if not level, with the new pricing we’ve announced,” he said.
Mr Ellis said if there was “a perception” by a customer that they may have been disadvantaged by Porsche’s new pricing, the car-maker would look into it.
“We’re obligated, to have a look at all the details surrounding that transaction,” he said.
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