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NINETY EIGHT REGENCY

Porsche says ‘no’ to smaller Cayenne

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Porsche says ‘no’ to smaller Cayenne

03/22/2010, 5:34 PMBY DREW JOHNSON

Reports of a sub-Cayenne ‘Roxster’ model have been circling the internet rumor mill for some time now, but Porsche says it has no plans to launch a baby SUV model. Porsche canned the Roxster project in order to put a greater focus on the strong-selling Cayenne.

Although a smaller and less expensive SUV model would open up the Porsche brand to a wider clientele, the company’s top executives are concerned that a new model would cut away at the Cayenne’s sales. Reports from inside Audi have shown that the compact Q5 crossover is taking away sales from the larger – and more expensive – Q7, with Porsche execs fearing similar results.

As it stands, the Cayenne is responsible for about 50 percent of the Porsche’s profits. If demand suddenly shifted to a less profitable volume model, it could greatly erode Porsche’s bottom line, ultimately effecting future operations.

While a smaller model would help Porsche’s overall fuel economy, the German automaker has largely addressed those concerns with more efficient models. Fuel economy is up across the board for the 2011 Cayenne – due out in late May – including a highly-efficient diesel model and a fuel-sipping hybrid.

LINK:

http://www.leftlanenews.com/porsche-says-no-to-smaller-cayenne.html

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