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2010 2011 BMW 5 Series Forum F10 Porsche IPO - good for the consumer? |
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View Poll Results: Do you think Porsche will make more cars after their IPO? | |||
No, Porsche will continue to produce low volumes | 14 | 53.85% | |
Shareholders will force Porsche to increase production | 12 | 46.15% | |
Voters: 26. You may not vote on this poll |
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09-09-2022, 09:19 AM | #1 |
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Porsche IPO - good for the consumer?
I'm sure you have all read that Porsche is going public.
With having to now line the pockets of shareholders do you think Porsche will be forced to now increase production so everyone who wants a Porsche will get one? If I had stock in a company, I would want that company doing everything it could to bring in more revenue and there is only so much mark up you keep asking for on limited production. I don't know enough about what happens behind the scenes at Porsche but I always felt they were leaving 100s of millions of dollars on the table by not selling everyone a GT3 who were willing to pay MSRP. I hear stories of people waiting a full model generation before getting an allocation or having to take one off the heavily inflated secondary market. Don't get me started on 2 year old 911 S going for 200K! IMO, all of their pricing has had to move upwards to stem off some of the demand, but by having fewer cars in the market they reduce service revenue, used car inventory to resell, etc. What are your thoughts? Last edited by VChenz; 09-09-2022 at 03:03 PM.. |
09-09-2022, 09:31 AM | #2 |
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I think it's good for the folks who own one now because the market will get diluted with cheaper models (as you outlined, to maximise profit) and at the same time the classic 911 line will see price rises.
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09-09-2022, 10:28 AM | #3 |
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Look to the bigger picture. VW is raising capital via the Porsche IPO so that the EV transition can be financed. Big R&D and fixed asset investments are needed from carmakers to get to the EV future state.
Especially so for a German company, where the home country culture is not conducive to mass layoffs, as are socially acceptable at some level in the U.S. Large numbers of employees and significant machinery and buildings would be made redundant in the EV transition. Because VW doesn’t have the same flexibility as say, Ford, VW will not simply cut the employees or close the old ICE operations. They will retool the facilities and retrain the workers. This costs huge dollars (Euros). I don’t see Porsche going the MB route and attempting to put a car in every driveway with cheap crummy models (A-Class, CLA, GLA, GLB). My view is the Porsche IPO affects no one except the VAG balance sheet. Last edited by chassis; 09-09-2022 at 10:33 AM.. |
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09-09-2022, 01:58 PM | #5 |
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If an IPO means they will meet demand for GT models, then bring it on. I don't care about resale value. People would like to be able to get a GT model without an adm and/or waiting on a list 50 customers long.
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09-09-2022, 05:26 PM | #8 | |
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It’s hard to see how porsche does not get itself into that position. |
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09-09-2022, 06:43 PM | #9 |
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The Porsche and Piëch families will retain control. The Board is more or less hand chosen by the families. Shareholders' voices will never be heard, in practice. I haven't looked into VAG ownership but given the control positions of the families, even institutional investors would not be able to force change.
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09-09-2022, 06:51 PM | #10 | |
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09-09-2022, 08:37 PM | #11 | |
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09-09-2022, 08:57 PM | #12 |
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09-09-2022, 09:22 PM | #13 |
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Shareholders will force engineering decision based on 'value'. It will impact their reputation long term.
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09-09-2022, 10:11 PM | #14 | |
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09-10-2022, 08:06 AM | #15 | ||
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09-10-2022, 08:16 AM | #16 | |
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Additionally, judging by say the the current generation Vette, I actually think Porsche is leaving some money on the table in some aspects - i.e. GT4 or GT4 RS even - I think it would be interesting to see how many bought them if they were a bit more available. I have a feeling it’s a lot more revenue than people realize. Hell people said the same about BMW but their revenue is up quite a bit. MB also. It’s actually a proven model whether people here like it or not. |
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09-10-2022, 09:10 AM | #17 |
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I've observed this very thing happen with high end audio. Many once great marques have been dropped into the toilet due to shareholder pressures or are totally gone. Not saying Porsche will disappear but the probability there will be changes which won't be for the better is pretty high.
I've also worked in a large company which was public, then went private, and now is public again. I can say decisions made when under the public umbrella were definitely steered by shareholder pressures. Also, managers that make strategic and significant decisions were either added or thrown out due to shareholder, quarterly report pressures. |
09-10-2022, 10:37 AM | #19 |
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This is the part that would worry me as there will likely be pressure to increase sales. That said it may be a good stock to buy and hold as it seems Porsche is in a better place now than it's ever been when you look at how good their products are and their overall sales growth as consumers love their SUV's. I don't care if they add a mid-size SUV to meet increasing sales demands as long as they aren't pressured into offering entry level vehicles.
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09-10-2022, 10:55 AM | #20 | |
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09-12-2022, 08:30 PM | #21 |
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One can only hope this will have minimal impact. But shareholders will always push for growth and if the stock isn't performing, the execs will be ousted. That naturally leads to companies making non-engineering driven decisions. In contrast, Porsche has always been an engineering-focused company.
I don't feel good about this. Would hate to see Porsche become diluted like BMW has.
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09-12-2022, 08:32 PM | #22 | |
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