Inventories of Porsche Cars North America were cut in half during the past months to about 45 days. Porsche expects that incentive spending will be ended by the end of March. At the make meeting, COO Michael Bartsch said that there was an oversupply across the board but that those inventory levels are pretty balanced again.
Porsche had operated with up to 90 to 100 days supply at the peak last year. It also ran aggressive lease rates that was "very unusual" for the company. In addition, Porsche is offering lower lease rates on the Cayenne SUV and Boxster sports car.
Bartsch said that 'a core part" of Porsche's brand values is to offer no incentives. Dealers have asked the carmaker to terminate the lease incentives because funds were diverted from marketing to pay for them, according to Jerry Nelson, owner of Schneider+Nelson Porsche in West Long Branch, N.J. Nelson added that the incentives had helped dealers like him to "turn the corner."
Last January, Porsche sales were up 8% but the carmaker informed dealers that it would be difficult to predict the rest of the year. Bartsch said that February has been difficult because the snow had shut down everything.
Last October, Porsche launched the Panamera, its four-door sedan that's currently leading sales. In the middle of June, a V-6 Panamera is expected.
This more affordable model is anticipated to give Panamera sales a considerable boost. The V-6 Panamera will start at $75,375 compared with $90,775 for the base V-8 Panamera S. Destination charges are included in both prices.