
The economy is hurting and more and more carmakers are suffering. Not all are doing poorly, though. Audi, as an example reported record sales for 2008, with over 1,000,000 vehicles sold. Lamborghini, owned by the VW/Audi Group, also posted record sales for 2008. Both companies produce sports cars that retail at over US$100,000.
Let us examine the developments of the last month by automaker:
Porsche. There is no substitute for a strong economy. A poor economy negatively impacted sales at the sports car maker, and even a significantly revised 911 model did not save it from a virtual sales slump. Porsche is tighter with numbers than most companies, but while sales were slowing, the company hopes that new models in 2009 will help it combat slumping sales. A four-door car, the Panamera should hit showroom floors in the first half of 2009, while you can expect to drive a 2009 Boxster/Cayman with revised powertrain as soon as March.
In financial news the company announced the first week of January that they had bought an additional 8.16 per cent stake in VW worth 6.1bn Euro/US$8.2bn. Porsche now owns 50.76 per cent of VW Group but may gain further stake in VW, rising to 75 per cent in coming months (if all goes as planned). In November, news came out that Germany’s upper house of parliament passed new laws regarding ownership of VW, despite European Commission rulings that such laws were illegal.
In November, the high profit-maker in the world gobbled up a stake, which sent hedge funds scrambled to recover from trading, which briefly left VW as the most valuable company in the world. Porsche’s finance team effectively practiced something called “cornering”. Let us not forget that Porsche is better as an investor than as a carmaker – though they are a damned good carmaker. In 2007, the company made 3.6 billion Euros on investments, and only a paltry 1 billion Euros on cars. At a 12 per cent profit margin, the decision to invest in VW stands financial positioning, and partly seeking a partner with whom to share technology development costs.
Still, everyone is watching the dollars and cents these days. Even Porsche has announced that is it pulling out of the American LeMans series for 2009 – in part. It is pulling the P2 team, but not pulling support for the 911 GT3 RSRs in the GT2 category.
Mercedes-Benz. Mercedes has finally announced the much-anticipated E-class for 2009. The new car replaces the round headlights with more rectangular ones, perhaps in the style of the C-class or a Lexus.
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