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But the average price of a Porsche is
Posted by Noel [Email] (more from Noel) on Wed, 27 Jan 2010 15:45:46
In Reply to: Small brand annual vehicle sales figures, MI-Roger [Profile/Gallery]
, Wed, 27 Jan 2010 11:19:57
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LOTS more than the average Saab, even before Saab's discounting. So even though Porsches cost more to make, the margin on them is much better. And they have owners who willingly pony up the cash for new ones, no matter what. Porsche has a far more compelling legacy (than Saab) that appeals to its deep-pocketed and passionate owners. And Porsche has done a pretty consistent job of leveraging its racing success over the years and imbuing that success to sales of its road cars.
Saab is going to go upmarket, because that's where the money is. It will take 3-5 years to really gain traction, but if they can pull it off I see them as being more like Audi in the future, but producing something more unique. That doesn't mean they won't have some affordable cars (think of the Volvo C30 or Audi A3), but to succeed the brand needs to go upscale. Like it or not, it's simply a better segment to compete in. A small company can't compete with the Koreans or Japanese on mainstream cars.
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