Porsche Pre-Tax Profit Up 18% in the Second Half of 2002
 |
| Porsche Cars North America president Frederick Schwab has reason to smile. He's done more than his share towards Porsche's continued profitability, and should have the satisfaction of leaving his office (March 2003) in good shape. (Photo: Trevor Hofmann, Canadian Auto Press) |
Porsche, one of the world's smallest mainstream automakers, has managed to remain as the most profitable as well. Its second half of 2002 recorded earnings of E185 million (£123 million; $US199 million $CAD305 million) resulted in an 18% gain for the year.
Due to a bevy of new product launches during 2002 sales have risen by a full 20%. This, of course, doesn't yet include sales from its much anticipated Cayenne sport utility vehicle, a model that should improve its profits measurably without necessarily cutting into its core sports car business.
 |
| Like what you see? Over 20,000 hot premium SUV prospects do. The Cayenne should enhance Porsche's 2003 profitability, helping the Stuttgart, Germany based company remain in top spot. (Photo: Trevor Hofmann, Canadian Auto Press) |
Some analysts are concerned, however, that Porsche's expectations for their new SUV are too high. They cite that important U.S. markets are starting to lose interest in larger SUVs. Of course, analysts have been saying this for years and, on the contrary, full-size sport utility sales are still relatively brisk compared to the overall car market.
Brisk sales in mind the Cayenne has been winning its own popularity contest, garnering a significant 20,000 hot prospects even before its official U.S. introduction at the North American International Auto Show in Detroit. And just what is a 'hot prospect'? According to Martin Peters, Manager Media Relations for Porsche Cars North America, these are potential customers that have "expressed an interest to buy a sport utility vehicle and have especially shown interest in our brand."
Unless an extended Iraqi war, anti-SUV political intervention or unforeseen market fluctuations ruin the party, Porsche should continue their market domination throughout 2003.