Porsche Considering A Smaller And Affordable SUV – rpmGo.com

Porsche Panamera

Yesterday in Berlin, the supervisory board of Porsche Automobil Holding signed off on creating a smaller and more affordable sport utility vehicle which will most likely target young drivers that are not able to afford the more expensive Cayenne model, which is at the moment the best-selling car manufactured by Porsche, especially in China.

Bernhard Maier, the head of sales & marketing for Porsche, said at the beginning of this month that the options are to create the Cajun in-house, use a partner or share a platform with another VW Group brand. He did not mentioned if the new smaller SUV will begin production in 2013 nor that it will have the same platform and some components with the Audi Q5. He said that by developing this new car it will be a solid way for Porsche to increase annual revenues and “follow the growth plan of the company.”

The CEO of the VW Group, Martin Winterkom, hopes that the Porsche sales will double to about 150,000 units in the next three years and further increase the cooperation between Volkswagen and Porsche. He said on Monday that Porsche will start making future platforms for the VW Group luxury sedans and sports cars. Juergen Pieper, who is an analyst for Bankhaus Metzler stated that “Porsche has its ambitious agenda clearly cut out. Access to VW’s vast technology may help them pursue their growth goals.”

Last week, Porsche announced that it will be investing $197 million (150 million euros) in order to upgrade its research center located near Stuttgart so that the company will offer in the near future 38 models across four vehicle lines. Porsche sold last year 81,850 units, including the Panamera sedan (priced at 75,900 euros) and the Cayenne ($72,635), which is 8.8% more than 2008.

Porsche Panamera

On Monday, Porsche reported a net income of 155 million euros for the first-quarter, in comparison to the similar period of last year when they lost 431 million euros. Porsche is in the process of merging with Volkswagen, who is Europe’s largest automaker. VW acquired 49.9% of Porsche AG; after the sports car manufacturer failed in an attempt of a hostile overtake of VW.

Today, Porsche will inquire shareholders to accept a capital increase of approximately 5 billion euros in the first half of 2011, with the automaker’s controlling shareholders and the Porsche & Piech families, contributing about 2.5 billion euros.

Post tags: Tags: cayenne, panamera, Porsche, suv