I had an interesting conversation with my sales guy today (I purchased a 2003 996TT a month ago).

Amongst other topics, he told me that they went to a regional meeting with Porsche North America, and were told that in 2004, Porsche will be limiting production on the 996TT to approximately 80 units. When I asked why this was since the Turbo was such a strong seller, he said that Porsche believes they over produced 2001-2003 and were trying to limit supply to increase pricing.

I had heard this rumor on another board, and found it extremely difficult to believe, and now I am hearing the same from my dealership... I wonder if what I am hearing is the truth, or PNA's attempt at raising prices on the Turbos.

I guess since I have a Turbo, I should be happy that (if) they are limiting production because it keeps the value of my Porsche up a bit. According to my sales rep, there won't be anymore good deals handed out (read; below MSRP) on the Turbo model and whatever 2003 supply they have, they will sell at or above MSRP.

Again... I don't know if this is the truth or not; but I figured I'd post it for public comment since I heard it straight from the horse's mouth.

Kind Regards,

Joe West

 

If true, then I would say congratulations, Porsche, on finally figuring this out. I think it's been obvious for some time that Porsche hasn't created the demand to match their production at this premium price point. And, yes, the economy has something to do with it. But even with a great economy, it's hard to double or triple the demand at your premium price point.

Something had to give, and what gave was drastically lower resale value, and reduced dealer margins. Porsche may have made their 45% gross profit margin on the increased production of TT's (or whatever the number is), but that doesn't mean that their dealers or end users "won" to the same degree that Porsche did on the deal.

I sold my '97 993TT in 2000 for $83,500 with 40,000 miles on it. I paid $118,000 for it including $13k of options. What do you think a 2001 996TT with 40,000 miles on it will be worth next year?

 

I can't believe that is true as far as sales of existing inventories. Someone drove to my home yesterday in his 2 hour old new 03 Turbo and I know he did not pay MSRP. I hope they do only make 80 04's.

 

I heard a similar line from Dallas dealers.
Dumbfounded, I called a San Diego dealer and got a similar tune.

Perhaps they are trying to move the existing 03s off the lots with this story?

 

I talked to a friend at PCNA today and he said the planned '04 Turbo production is 87.

 

Internally Porsche knows they have created more cars than demand. This is the only way for them to even out over the next year.

 

Does anyone think used Turbo prices will go up because of low production next year?

 

Only if the laws of supply and demand still hold true...



Joe West

 

tony - i do not. they might stabilize, but i would be very surprised if they went up.

dealers are seriously discounting the 2003s they have on their lots. PAG produced a lot of these things. the 2001s are going to start coming up in droves as the 36 month leases come up. etc. etc.

hopefully it'll stop the slide though, which is a good thing.

i think PAG's behavior has virtually nothing to do with the consumer. they're reacting to supply & demand - the dealers just do not need that many more turbos; and they probably get some factory benefit by focusing the production line on the turbo cab, which will surely be produced at more than 80 units.

doody.

 

Financially this does not make any sense. A factory does not let a line dedicated to making Turbo's sit idle. The cost are enormous. You produce to at least meet your cost plus margins.

This trial balloon is an attempt to sell the 2003's and prop up the price levels. Porsche is not adverse to taking this type of marketing misrepresentation.

 

NIce to see you here Nick!

 

Darren my pleasure and I must say a GREAT start to a terrific forum. The future will only get better with the 997, tt Cab. and on and on.

 

of course they're not going to let the line sit idle. they're going to produce turbo cabs on it.

and when they have produced enough of those, i agree with you, they'll suddenly announce "a surprising surge in demand" for turbo coupes and restart production.

doody.

 

I had heard (from my dealer) 100 '04 tt coupes for North America or US - not sure which. Most of these go to CA and, I guess, FL. Only one was allocated to the 4 dealers in the D.C. area, and it had already been grabbed up. Reason given for the limited allocation - Porsche concentrating '04 tt production on the Cabrio. I didn't get an allocation figure for the tt Cabrio.

Fred

 

I was told 80 TT for 04 by my sales guy- he fgot it from PCNA at a meeting. I got an 03 TT at a fair discount 3 weeks ago from him and was told I got the last discount deal they cut. All TT's after my deal were at less of a discount and are heading back towards MSRP.

It will be interesting to see what happens when the 04's are released.