The Book of 911

Brand loyalty = profits!

I was recently reading this article from an organization called TreeFarm Partners. The article describes a theory behind the success of Subaru and MINI in the current economic recession. The article rightly points out that both brands offer somewhat inexpensive and fuel-friendly vehicles. It goes on to point out that the key for both has been high brand loyalty figures, and that this loyalty was leading to profits in an otherwise difficult economic time.

And this got me thinking about Porsche. All things lead to Porsche for me, that much is true, but I have over the years been led to believe that Porsche has among the highest owner retention rates, which is what has allowed the same 911 model to thrive for 45 years now. So I decided to look at the numbers and find out if I have merely been drinking the kool-aid, or if Porsche is undeniably a leader in brand loyalty.

To gather the data, I went to this site: http://www.bizzia.com/brandcurve/brand-loyalty-in-the-car-industry-toyota-still-1/, an article about brand loyalty, published in 2007. The article references JD Power and Associates numbers, and to say the least those numbers raised eyebrows.

According to the report, Toyota had the highest brand loyalty numbers at 68.9%. How odd is it then that Toyota is now posting losses!? Guess who came in second? Hint: it wasn’t Porsche. It was GM, now on the verge of bankruptcy. GM’s retention rate was a whopping 64.7%. BMW was fourth at 56.9%. Subaru was only 6th at 51.2%. MINI wasn’t in the list, probably due to it’s being lumped in to the BMW figure or perhaps because the brand was still quite young in 2007. Porsche by the way was a paltry 41.6%, which put it in 11th place just behind Maserati!

So what of this analysis? How can we explain that some of the highest retaining brands are suffering the most while, Porsche at 11th place is doing “okay” in this recession? Actually, if you reference this 1996 article in the Cornell Chronicle by Margo Hittleman, you will note that new customers mean less profit for the automakers, while existing or retained customers mean a significantly higher profit. Of particular note, Porsche loyalists paid an extra US$4782 per car while Mercedes-Benz loyalists paid an extra US$7410 per car. Stunning results to say the least. So yeah, brand loyalty IS important, but it doesn’t mean financial success, particularly in an economic downturn. Corporate strategy wins the game.

Pictured is the 250,000th Cayenne ever produced.

Editor’s note: yes, it’s not a sports car, but we will cover anything Porsche on these pages. There is little doubt about the success of the Cayenne for Porsche. The Cayenne literally brought the company out of the doldrums that swept the company through the 1990s, and out of obscurity. Today, you see more Porsche Cayennes on the road than any other Porsche model. The Cayenne has literally made Porsche what it is today. Now it’s time for a more frugal diesel Cayenne, and one with a hybrid drivetrain. Bring it on!

Since 2003, more than 85,000 Cayennes have been sold in North America 

ATLANTA – March 6, 2009 —- Dr. Ing. h.c. F. Porsche AG in Stuttgart today 

produced the 250,000th Cayenne at its Leipzig, Germany assembly plant. The 

milestone vehicle, a white Cayenne powered by a fuel-efficient and clean- 

burning six-cylinder diesel engine, will be delivered to a customer in Austria. 

Porsche began building its sporty Cayenne SUV in Leipzig in 2002. “The 

introduction of the Cayenne as the third model in the series was an important 

strategic step for Porsche,” said Dr. Wendelin Wiedeking, Chairman of the Board 

of Porsche AG. “The five-seater is not only a great addition to the range for our many long-term Porsche customers, but it also opens up to us an entirely new 

customer segment on international markets.” Thanks to its typical Porsche 

genes, the easy-to-handle Cayenne uniquely combines sportiness with 

robustness and absolute off-road capability. 

Since the Cayenne went on sale in North America in March 2003, U.S. and 

Canadian customers have to date purchased 85,311 examples of Porsche’s 

popular SUV. In addition to the United States and Germany, important future 

Cayenne sales markets include China, Russia, Latin America and the Middle 

East.  Read the rest of this entry »

To be seen at the Geneva auto show

The annual Geneva auto show will bring a variety of new cars. For example, Bentley will showcase its new “Extreme” biofuel-powered car. Porsche will also be there, as usual, and you can count on the launch of the latest GT3. It’s a naturally aspirated car with 3.8 litre displacement that reaches 60 mph in 4.0 seconds. Pretty quick. In fact performance is the name of the game with this car, and nearly everything sees minor upgrades from the previous GT3.

ATLANTA — January 29, 2009 — Porsche will launch the fastest, most powerful 

911 GT3 to-date at the Geneva Motor Show on March 3, 2009. The high 

performance GT3 is the latest in the new generation 911 series and carries over 

a wide range of expertise learned from motorsports – resulting in superb 

capabilities both on road and on track. 

New Engine 

The 2010 Porsche 911 GT3 raises the performance bar thanks to an increase in 

engine size to 3.8 liters and VarioCam technology now on both the intake and 

exhaust. The naturally aspirated six-cylinder boxer engine develops 435 bhp, 20 

bhp more than its predecessor. 

The new, larger engine offers a significant increase in torque at medium engine 

speeds, which is particularly important for everyday driving. Track performance is 

also improved; the new GT3 accelerates to 60 mph in 4.0 seconds and reaches 

a top track speed of 194 mph. 

Improved Suspension 

Driving dynamics have also been enhanced, and the new GT3 offers even better 

grip and stability. Porsche Active Suspension Management (PASM) has enabled 

Porsche’s engineers to make the springs and anti-roll bars stiffer, thus ensuring 

even more precise handling in sport mode, while retaining a level of comfort 

suitable for everyday use in normal mode. For the first time, the 911 GT3 comes 

standard with Porsche Stability Management (PSM), with suspension mapping 

mirroring that of the GT2. The driver can disengage both stability control and 

traction control in separate steps. 

Refined Aerodynamics 

At high speeds, aerodynamic improvements have increased downforce at both 

the front and rear, more than doubling the effect of the previous GT3. At the 

same time, the new aerodynamics package, with larger vents in the front and 

rear bumpers gives the GT3 a brand-new look, accentuated by standard bi- 

xenon headlights, LED rear light clusters and modified air intakes and outlets. 

Innovative Engine Mounts 

The new GT3 will be available with new and highly innovative dynamic engine 

mounts. Utilizing magnetic fluid, these inventive mounts automatically stiffen to 

create a more solid coupling between the engine and chassis when the car is 

driven energetically. This provides a sporting, rigid assembly on fast bends and 

winding racetracks yet allows for engine isolation and increased comfort while 

driving in everyday traffic. Traction is also improved when accelerating from a 

standstill. 

Upgraded Brakes 

With driving dynamics and performance at an even higher level, the brake 

system, following a long Porsche tradition, has also been enhanced accordingly. 

Brake discs are larger and feature an aluminum hub to reduce weight. Increased 

brake ventilation ensures a high level of brake power over long periods, and the 

GT3 can also be equipped with PCCB ceramic brakes, developed specifically for 

this model. 

Creative Front End Lift 

A new lift system for the front axle is also available. By utilizing an on-board air 

compressor, the front of the car can be raised for steep driveways or inclines. 

The touch of a button raises the front ride height by 30 mm, or 1.18 inches and 

at speeds up to approximately 30 mph. New, lighter GT3 specific center lock 

wheels and ultra-high performance tires round out the functional and visual 

enhancement of the GT3. 

The 2010 Porsche 911 GT3 will be available in the fall of 2009, MSRP US$112,200 

 

Source: Porsche Cars North America.

A Porsche Panamera escaped damage during the accident

Car accidents are always tragic, but they carry special meaning when they serve a purpose. February 13 brought much unwelcome news for everyone in the Porsche world when one of it’s most seasoned test drivers was killed in a road accident during testing of the next generation Porsche 911 convertible. 

Apparently the driver lost control of the car at moderate speed on an unregulated portion of the autobahn in Hessen, during damp weather. 

Testing locations vary from location to location. Some are on closed-circuit tracks, others are on high-speed ovals, but a lot of testing is “real-world”. Spy shots abound of nearly ever new models that comes out. Some cars are tested more rigorously, but sports cars tend to receive a lot of test time on road and track. Often the test drivers work in shifts, 24 hours per day, and in various locations ranging from the deserts of Arizona, to above the arctic circle in Sweden.  

Test centers for various manufacturers include:

Pictures from the accident detailing the car’s position in relation to the guardrail are here.

Read the rest of this entry »

From Porsche:

ATLANTA – February 12, 2009 —- Today, Porsche AG for the first time presents its Panamera four-door gran turismo interior concept. The much-anticipated addition to Porsche’s performance lineup will make its U.S. market debut on Oct. 17, 2009.

With a continuous center console that extends from the dashboard to the rear seating area, the Panamera offers a new spatial concept for the driver and passengers featuring optimal ergonomic seating with individual cockpit-like spaces for all. Its deep seating position and a sport steering wheel help give the driver and passengers direct contact with the road. At the same time it provides a generous, roomy environment with exceptional leg and head room, unique qualities in a sporting machine yet essential for grand touring. This individual seating allows for optimum passive safety.

Porsche will provide countless opportunities for individual interior customization with 13 color and material combinations including four two-tone leather interiors and seven interior trim options including carbon fiber to Natural Olive wood.

An available four-zone climate control system gives each seating area individual control of functions such as temperature, air distribution and venting direction. In the unfortunate event of an accident, front, side and curtain airbags help protect the front occupants, while standard rear side airbags help protect those in back. The Panamera S and Panamera 4S feature eight-way power seats in front with a driver memory package. In the rear are two individual seats with a folding rear console and plenty of room. The Panamera Turbo has power seats with a memory package for not only the seat functions but also the electronically adjustable steering wheel. Further seating customization is available through optional alternatives such as 18-way Adaptive Sport Seats or fully adjustable eight-way power seats in the rear.

Porsche for the first time will offer from Burmester® — the renown Berlin audio manufacturer — a new ultra high-end surround sound system. With 16 loudspeakers plus a subwoofer (a total of over 2.5 square feet of speaker surface area) and a total output of more than 1000 watts, this new system gives listeners a grand acoustical experience. And like the 2009 Porsche sports cars and SUVs, Panameras will be available with the latest personal electronic connectivity features, including Bluetooth for cellular telephones, Universal Audio Interface for connecting personal audio devices, and satellite radio.

The rear luggage area provides up to 15.7 cubic feet of space, enough room for four large suitcases. The tall space enables luggage to be loaded in an upright position, and with the rear seat folded down the luggage space generously increases up to 44.6 cubic feet.

Initially, all Panameras will be available with two V8 engine options, standard seven-speed Porsche Doppelkupplungsgetriebe (PDK) double-clutch transmissions and rear- or all-wheel drive. All engines feature Porsche Direct Fuel Injection (DFI) for highest efficiency. For additional fuel savings, all Panameras include an engine stop-start function that can turn off and restart the engine at certain times, like when stopped at an intersection or in traffic.

The rear-wheel drive Panamera S has a 400-horsepower, 4.8-liter V8 engine that can propel it from 0 to 60 mph in 5.2 seconds on its way to a top test track speed of 175 mph. The manufacturer suggested retail price (MSRP) is $89,800. The all-wheel drive Panamera 4S receives the same 4.8-liter powerplant. It sprints from 0 to 60 mph in 4.8 seconds, achieves a top test track speed of 175 mph, and has an MSRP of $93,800.

At the top of the Panamera lineup is the Panamera Turbo with its 500-horsepower, twin-turbocharged 4.8-liter V8. Also featuring the new PDK transmission, the all-wheel drive Panamera Turbo sets a breathtaking 0-to-60 time of 4 seconds flat and a top test-track speed of 188 mph. The Panamera Turbo has an MSRP of $132,600, and all three Panamera models will go on sale in the United States this October.

Porsche Cars North America, Inc. (PCNA), based in Atlanta, Ga., is the exclusive importer of Porsche sports cars and sport utility vehicles for the United States. It is a wholly owned, indirect subsidiary of Dr. Ing. h.c. F. Porsche AG. PCNA employs approximately 180 people who provide Porsche vehicles, parts, service, marketing and training for its 201 dealers. The dealers, in turn, provide Porsche owners with best-in-class service. Throughout its 60-year history, Porsche has developed numerous technologies that have advanced vehicle performance, improved safety and spurred environmental innovations within the automotive industry. The company continues to celebrate its heritage by adding to its long list of motorsports victories dating back to its first 24 Hours of Le Mans class win in 1951. Today, with more than 28,000 victories, Porsche is recognized as the world’s most successful marque in sports car racing. PCNA, which imports the iconic 911 series, the Boxster and Cayman sports cars and Cayenne sport utility vehicles and soon the Panamera gran turismo for the United States, strives to maintain a standard of excellence, commitment and distinction synonymous with its brand.

Source: Porsche Cars North America