Posted on: Nov 15, 2012
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Porsche Cuts Sportscar Production

Where does Porsche make its money? On its SUVs and sedans, not on its sportscars.
Having practically subsumed the majority shares in the Volkswagen Group, there's little question that Porsche is an extremely profitable automaker. But while sportscars may be what put the company on the map, it's not making its skyrocketing profits off those two-door models. Emerging reports indicate that Porsche is cutting work shifts off its assembly plant in Zuffenhausen, Germany. The Stuttgart suburb is where the company has long been based, and where it continues to build the 911, Cayman and Boxster models.

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Porsche had added weekend shifts at the Zuffenhausen plant in September to keep up with projected demand for the new 911, but is now dropping those eight extra shifts due to what industry insiders project will be reduced sportscar purchases due primarily to the European economic crisis. Where it is not trimming production, however, is at its other plant in Leipzig, where it produces the Panamera and Cayenne - its larger, family-sized models - and will soon start building the smaller Macan SUV. Those are the models which are driving Porsche's profits, and which are expected to continue production at the same pace for the foreseeable future.
Whether the introduction of the new Cayman at the LA Auto Show later this month will have any effect on the adaptable production cycle at Zuffenhausen, however, remains to be seen. The small run of 918 Spyders being built will hardly have an effect on Porsche's volume sales. But the trend shows quite clearly where Porsche is making its money.

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