The Volkswagen owned company is among the top high-end sellers surpassing brands like Mercedez and Audi. AutoNation Inc., Penske Automotive Group Inc. and Asbury Automotive Group Inc., three of the largest new-car retailers in the U.S., all have purchased Porsche franchises since 2010. In a period of growing activity for auto-dealership acquisitions, the deals lifted Porsche among the most frequently acquired franchises by publicly traded groups during that span.
While some Porsche fans frowned at the lineup’s expansion, criticizing that SUVs and four-door sedans are a violation of the brand’s principles, the profitability of the Porsche franchise has changed more dramatically than for any brand in the industry in the last 20 years, Alan Haig, managing director for Presidio Automotive, said for Bloomberg.
“There arent that many sports-car buyers in the world,” said Haig, who previously oversaw acquisitions at AutoNation, the largest U.S. auto-dealer group. “Many Porsche stores were bought almost as a toy for the dealer, for him to have something nice to drive and to go on nice trips. But it wasnt a serious money-making investment.”
This changed dramatically after introducing Cayenne SUV in 2003 which transformed Porches strategy from attracting wealthy male buyers to earning attention of families able to pay a higher price for a SUV with sport car features.
Porches sales climbed to 183 vehicles per franchise last year which is a 23% increase from a year earlier, according to according to Automotive News Data Center. This numbers are better than Cadillac, Lincoln and Chrysler. This year, the high-end brand is estimated to exceed 200 sales per franchise as demand raises for its Boxster and Cayman sports cars and the Cayenne. The brand’s U.S. deliveries increased 30% in the year’s first six months, paced by a 47% jump for Cayenne and tripling of Boxster and Cayman deliveries.
The importance of owning a Porsche dealership also extends as company’s models are some of the world’s most highly engineered vehicles, which gives dealerships an advantage over independent repair shops.
As a feature to new customers, Porsche is building a new headquarters in Atlanta that will include a test track and delivery center. There, dealers will be able to send customers there or to a Porsche Experience Center that’s also under construction in the Los Angeles area. That would allow customers to test the limits of the sport car. Driving with 200 miles per hour (322km/h) is punishable by the law, and therefore not really possible to try on the road. The Private Autobahn aims to deliver that rare experience aiming to intrigue more customers into Porche lifestyle.
Volswagen share price is up almost half a percent since last day of trade.
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