Porsche Cars North America said today that it has cut its inventories in half in the past few months to 45 days and expects to end incentive spending by the end of next month.
“We were oversupplied across the board, and those inventory levels are pretty balanced again,” said COO Michael Bartsch. “We operated with up to 90 to 100 days supply at the peak last year and we ran aggressive lease rates. That was very unusual for us.”
Porsche, which has been offering lower lease rates on the Cayenne and Boxster, said “it is a core part of our brand values to have no incentives.”
Dealers have been urging Porsche to end lease deals because funds were being diverted from marketing to pay for them. Jerry Nelson, owner of Schneider+Nelson Porsche in West Long Branch, N.J., said that incentives helped dealers turn the corner. “We were in dire straits with inventory last year, and Porsche helped us out with incentives.”
Porsche sales were up 8 percent in January. A V6 version of the Panamera is due to join the lineup by mid-June with a starting price tag of $74,400.
– By: Omar Rana
Source: Automotive News (Subscription Required)