Porsche Looks Eastwards For Growth

Bertel Schmitt
by Bertel Schmitt

Even in the darkest days of double nickel, the U.S. of A. had been Porsche’s largest market. In Zuffenhausen, they had tried to get to the bottom of a phenomenon that defied German logic: Why buy a Porsche if you can only crawl along at 55 mph? Ever so thankful for the unexpected sales, Porsche abandoned the search for the unknown.

Now, Porsche is looking eastwards for growth. In the Monday edition of Automobilwoche, Porsche’s marketing head Klaus Berning will announce that his employer is looking for double-digit growth in Asia this year. Berning will be quoted as saying that he expects sales in Europe to show “some growth at best” this year, while it would take “quite some time” to return to the levels of before the financial crisis in North America. In other words: Don’t hold your breath.

“Asia” of course is code for “China.” In 2008, China became Porsche’s 3rd largest market, after the U.S.A. and Germany. Last year, Porsche’s sales in the U.S.A. cratered by 40 percent as disposable income and paper profits evaporated. In 2012, Porsche wants to outsell Germany with 16,000 Porsches sold to in China. With double digit growth projection, China will soon be Porsche’s largest market.

And Zuffenhausen will have another conundrum to crack: The speed limit on China’s many highways is 130km/h, which converts to 80 mph. China’s highways are littered with speed traps and automated cameras that dispatch an expensive ticket to the privacy of your home – something the Chinese quickly learned from Europe. So why drive a Porsche in China? As long as the sales grow at double digit rates, Zuffenhausen will be loath to find out.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • FreedMike FreedMike on Mar 21, 2010

    If the Chinese embrace Buick but reject Porsche, it proves one thing: that the Chinese are insane.

  • Obbop Obbop on Mar 21, 2010

    Is there famine underway in the People's Republic? Those models are mighty skinny. Perhaps we the overfed here in the "colonies" can take up a sandwich collection and FedEx a few to then gals that could use some padding on those bony bones.

    • Brian E Brian E on Mar 21, 2010

      Send the girls here; the sandwiches might spoil in shipping.

  • JimothyLite JimothyLite on Mar 21, 2010

    Bertel, thanks for your endless supply of exotic photography. The cars are nice too. "Hey, muchachas! You think my 911 is nice? I've got a big condo right next to the Longwan Shaman Amusement Park!" (HT: hakata, http://www.ananova.com/news/story/sm_2362087.html)

  • TonyJZX TonyJZX on Mar 21, 2010

    the demand for tall slim young women is always buoyant the demand for high end euro sports cars will always be buoyant in China and Japan (and every other country) that has a proportion of the population consisting of rich and juvenile young men who appreciate powerslides and quarter miles...

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