Porsche has announced that it will restart production in both Leipzig and Zuffenhausen from next Monday, May 4th. The manufacturer initially closed production due to coronavirus on March 21st for two weeks and said it would continue to assess the situation. The factories remained closed for six weeks due to issues with global supply chains, but that problem now appears to be sorted.
“We want to make the most of opportunities”: CEO
“It will take a great deal of effort to get the economic and social system moving again and we must all contribute to this,” said Oliver Blume, Porsche AG’s chairman. “It is important to have a positive fundamental attitude. Every crisis also offers opportunities and we want to make the most of them.” I think he is completely correct.
Porsche says it is restarting production on a site- and task-specific basis and that all the required measures have been taken to guarantee the maximum possible safety for employees. Adapted processes in production, logistics and procurement in line with social distancing measures have been agreed with the Works Council and the Health Management department. The requirements of the respective authorities will also be observed.
“The restart is an important signal – for our employees as well as for our customers. We have monitored and analysed the situation very carefully right from the start and flexibly adapted processes. Now is the right time to look forward with optimism and to resume work – subject to special precautions,” says Albrecht Reimold, Member of the Executive Board for Production and Logistics at Porsche AG.
The situation has also been improving in the UK. The dealer group Vertu announced today that it would bring 1,000 sales and service staff out of furlough to cope with high demand online. This tallies with my own experience of car sales enquiry levels and what I have heard from dealer group friends over lockdown. Vertu has 6,000 staff members furloughed, so, assuming the first wave goes well, it probably won’t be too long before more of those people return.
Car sales in coronavirus lockdown
The British Government recently clarified guidelines for selling and handing over cars. As most of garages I frequent are small scale local operations, they have all been open since the start of the lockdown. Many garage owners are one man bands who cannot afford to stop working and who also create no risk to others by going into work, as they are isolated inside a locked workshop.
The main problem with garage work right now is getting the parts. Fabrication for restoration and paint prep etc are OK to complete but, if the local Euro Car Parts does not have the parts on the shelf, it’s a case of scouring online sources for available parts as many of the parts wholesalers and distribution centres are closed. I have ordered a lot of parts online for my projects and they have all come in fairly short order, even when coming from as far away as Latvia and Lithuania.
Watching other countries taking cautious first steps out of their respective lockdowns has provoked some interesting questions, but getting fully “back to normal” (defined as “how things used to be”) could take years, according to some commentators I’ve read this week. I’m not sure there will ever be a “get back to normal” for World 2.0. A new normal is perhaps a more likely scenario and it will not be unwelcome. We can certainly hope for the best.
Porsche’s other measures to counter the spread of coronavirus remain in place at this time. An increased level of “mobile working” will continue and meetings will be held as video or telephone conferences. The company ban on business travel continues to apply.
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Porsche Cars North America (PCNA) and RM Sotheby’s have teamed up for an interesting charity auction with a money-can’t-buy delivery package appealling to Porsche enthusiasts. The auction’s only entry is the last-ever 991 generation 911 made: a unique Porsche 911 Speedster, one of 1,948 examples created to mark seventy years of Porsche sports cars.
The one-week auction will be held via RM Sotheby’s online auction platform to meet social distancing guidelines without delaying the charitable fundraiser. The winning bid (excluding taxes and fees), will be donated to United Way Worldwide’s COVID-19 Community Response and Recovery Fund.
Porsche Design is supporting the auction with the creation of a bespoke 911 Speedster Heritage Design Chronograph. The watch incorporates the vehicle’s historic design features, including a strap made in the exact same cognac leather from the Speedster’s interior and a silver winding rotor that mirrors the car’s unique wheels. Made in Switzerland, exclusively for 911 Speedster customers, the limited-edition timepiece with flyback function will feature the chassis number of the final 991 generation 911, making it unique.
In addition, the winning bidder and a guest will be invited to take a personal, behind-the-scenes tour of the Porsche AG Weissach development headquarters – including experiencing the test track – with Dr. Frank-Steffen Walliser and Andreas Preuninger, heads of the 911 and GT model lines respectively. The car will also be accompanied by a one-off book illustrating the assembly and completion of the last 991, including photographs and an original sketch by the Speedster design team. Finally, the handover of the vehicle will be hosted by Klaus Zellmer, President and CEO of PCNA at a dedicated event in North America.
“Not only does this mark the end of what, for me, was a special era but it’s especially rewarding that the last car to reach the end of the line should be the ultimate,” said Dr. Frank-Steffen Walliser. “The Speedster combined everything we learned and is the 991 in its purest form. I hope this unique car can make a big difference to those who need help right now, and that the fortunate buyer enjoys it and drives it as we always intended.”
“We’re proud to support Porsche with this initiative, recognising the urgent need to raise as much money as possible for those most affected by COVID-19,” said Kenneth Ahn, RM Sotheby’s President. “This is a truly unique and unheard of offering for extraordinary times – not just the car itself as the last ever seventh-generation 911 ever to roll down the line, but all auction items including the exclusive Porsche Design 911 Speedster Heritage Design Chronograph as well as the chance to experience an exclusive behind-the-scenes visit to the home of Porsche with the two engineers who lead the creation of modern era 911s.
“Finished in GT Silver Metallic paint, the 911 Speedster remains unregistered, having covered just 20 delivery miles. It’s powered by a 4-litre, 500 horsepower naturally aspirated flat six engine with a six-speed manual gearbox. The auction Speedster features the Heritage Design package and was built in Stuttgart last December.
The last remaining 911 Speedsters are now in transit to owners around the world, but there can be only one final car and this specific Speedster is the last of the 911’s seventh generation. It comes with a letter of authenticity from Porsche confirming that its chassis number is the last off the 991 production line.
The auction opens for bidding via RM Sotheby’s Online Only platform at 11:00 am EDT on Wednesday 15 April, closing at 1:00 pm EDT on Wednesday 22 April. The 911 Speedster is offered without reserve, selling to the highest bidder. Potential bidders can find more information on the unique package being offered and the registration process at https://rmsothebys.com/en/auctions/0020.
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Porsche has just launched the new 992 Turbo S in a livestream from Youtube. The presentation was hosted by Mark Webber, with appearances by Oliver Blume and Frank Walliser, who last year moved from the racing department to head Porsche’s 911 and 718 product lines. Comparatively little was said about the new model: much more was made of Porsche’s environmental goals.
On stage with Webber were two 992 Turbo S Coupes in Silver and Dark Metallic Blue and a Turbo S Cabriolet in white with red leather: a hand-stitched extended leather package. Walliser described the trim as catering for traditionalists, being reminiscent of the cabin in the original 1974 911 Turbo (the 930). It’s maybe a bit more along the lines of later Special Wishes models from the 1980s, including the Turbo SE.
“Passion, performance, pure emotion: that is what Porsche stands for,” said Webber. “The blueprint for all Porsche design is the 911: the world’s most recognisable sports car. Today, the flagship of that line takes centre stage.”
If you like a bit of Phil Collins, you were in luck, as “In the Air Tonight” provided the soundtrack for a montage of launch clips filmed on a dusty desert island showing an eagle, a wind tunnel and the Turbo S in motion.
“The Turbo S is elegant, efficient, powerful and, above all, it’s completely cool,” is how Porsche CEO, Oliver Blume, summed up the Turbo S essence. “The new car has 650ps, that is 70ps more than the previous generation. It sprints from 0-100 km/h in only 2.7 seconds and has a top speed of 330 km/h (205 mph).
“The first 911 Turbo was a real sensation in the 1970s and each new generation takes it one step further. We make it sharper in design, faster and more efficient. The Turbo is part of our DNA: it embodies the core brand values of Porsche: dynamics, power output and speed. And it is a real all-rounder, perfectly balancing speed and everyday usability.”
Porsche 911 Turbo: S for Sustainability
It was inevitable that at some stage the boss would bolt for the pass, to head off critics of the Turbo S’s profile as the historic embodiment of profligate excess versus Porsche’s environmental strategies with the all-electric Taycan, but it was still was a surprise to hear the CEO suggesting that the Turbo S was sustainable. Turbo S is the flagship of a highly priviled luxury product line, and sustainability is not very high on the list for most buyers. If buyers were serious about personal sustainability goals, they would hardly be spending £160,000 on a 700+ horsepower performance car.
“The Turbo S product strategy matches our brand profile and core competencies. It is sporty, flexible and sustainable. Therefore we focus on emotive combustion engines, dynamic plug-in hybrids and innovative electric sports cars.
“With electric cars and hybrids, we avoid local emissions. Their share of market will continue to grow. By 2025, half of all new Porsches will be electrified. At the same time, we are optimising our petrol engines. With each new generation, they are becoming more efficient. This also applies to sports cars, such as the Turbo S.
“Last year, we launched the Taycan: our first fully electric sports car. In doing so, we took a big step towards our sustainability goals. Sustainability today represents an important purchase reason: one that is just as important as a brand, the product and the design. That is what our customers see as value added.
“Sustainability is therefore an important pillar in our strategy. The Taycan is a successful example: driving with zero local emissions in an all-electric sports car. The production is zero-emissions at our new Taycan factory. But not only there: in the past five years, we have reduced CO2 emissions at all Porsche production facilities by an impressive 75% per car. We also set our clear sustainability guidelines for our suppliers.
“So ladies and gentlemen, Porsche is taking responsibility for society and the environment. At the same time, we are driving dreams from the racetrack to the road. This is what Porsche makes unique and also, a really cool brand.”
You have to take your hat off to anyone who can stand in front of half a million quid’s worth of wide-arched toys for the wealthy and give a speech about sustainability. That said, this was a much safer strategy than simply unveiling the trio without an accompanying corporate environmental presentation. Yes, the Turbo S is a usable everyday supercar – perhaps the perfect example of such – but how many buyers will take it over a zero-guilt, Taycan with similar oomph and bombproof residual values? Can the 911 Turbo S survive in the drive towards electric?
Porsche 911 Turbo S: survival in the age of electric
The Porsche 911 Turbo S is undeniably a bastion of excess, but excess is appealing to a shrinking number of western buyers. This is even more true as the stunning 0-60 performance, which has traditionally been the sole preserve and main attraction of turbocharged 911s, is laid waste by the instantaneous torque of electric motors. No doubt the Porsche 992 Turbo S is another great flagship, but how long more will this flagship exist?
Perhaps some will claim that we have just watched the launch of the last great Turbo, but I doubt it. The one thing that all Porsche Turbo S models have shared through the years is distinct self-effacement: an understated, restrained facade that is never brash or trying too hard, like a Lamborghini or modern-day Aston. It simply turns up with a minimum of fuss and does the job reliably, time after time. If a 911 Turbo S has one truly sustainable quality with enduring appeal, that is the one.
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Eldest daughter is currently away at university and working her way through a marketing module. As much of my work involves marketing, this has led to some interesting chats; one this week was on the Employee Promise, or People Promise.
For those who haven’t been on the job market in a while, a people promise is a relatively recent appearance and may be explained as what brands put together to assure jobseekers that their personal values and the company values align. It usually includes statements on inclusivity, respect and support of diversity, career development and talent retention, environmental responsibility and sustainability goals and aims to provide fun and fulfilling work for all.
Porsche sets out the bones of a people promise in its statement of Porsche corporate culture and values. “Our culture is defined by tradition and innovation. We live in a performance-oriented corporate culture and emphasise strongly the fair treatment of fellow employees. Our employees are driven by their passion for our extraordinary products. They sometimes think in unconventional ways, and this is something Porsche supports, because we value independence and individuality.”
This sort of language is often overused (just take a look at the fashion industry), but my experience across Porsche suggests that the company is pretty effective at driving this mindset down through the ranks. The brand is veined with impressions of inherent discipline and strong moral values, and being finely attuned to this comes with the territory. One downside to teutonic efficiency is the transmission of stiffness or arrogance: something Porsche and its dealers are often accused of.
Porsche Brand Ambassadors: Discipline
Discipline is a core value at Stuttgart and that is one driving factor in the appointment of brand ambassadors. Porsche relies on a number of ambassadors: the official ones come from the world of competition, where discipline, stamina and controlled aggression are major components in success. Looking at unofficial ambassadors, Porsche has also pulled in other less disciplined influencers who offer a congenerous narrative and an extensive follower count. This spread of personalities helps Porsche’s messaging to reach many more corners.
The most widely seen Porsche ambassadors are Mark Webber and Maria Sharapova. The handsome high achievers from the world of sport have many things in common, including all-important success, astuteness and a “humble roots” narrative that mirrors the company’s origins. We see the same “humble roots” narrative in the Magnus Walker story: a self-made media sensation, crossing cultures and generations. Porsche has previously hired Walker to draw in the crowds, but stopped short of sending an ambassadorial invitation.
Porsche Brand Ambassadors: Tennis
Tennis is a fertile recruitment arena for the Porsche ambassador army and ambassador press releases in the category of tennis outnumber all other sectors more than two to one. Germany’s Angelique Kerber (below) and Julia Görges both serve as tennis brand ambassadors alongside Sharapova.
As one would expect for a car manufacturer, many ambassadorial roles come from the world of motorsport, with Walter Röhrl, Jörg Bergmeister and Timo Bernhard (below) all serving as ambassadors alongside Webber at the recent Cayman GTS launch. While this may seem quite a senior mix, most Porsche buyers are no spring chickens and it is not an easy task to identify a younger ambassador offering similar attractions to Webber and Sharapova, who would also bring cross-demographic appeal and have no pre-existing arrangements with other manufacturers.
Porsche Brand Ambassadors: Youth and YouTube
The Norwegian World Cup champion skiier, Aksel Lund Svindal, was recently appointed as a Porsche brand ambassador and currently feaures on several Porsche YouTube videos. YouTube is the online hub for so much skiing and showboarding content, so this may be one route to a (slightly) younger demographic. The Australian snowboarder, Torah Bright, is another who has enjoyed some exposure as a brand ambassador for Porsche Australia.
Porsche regional centres often bring in figures from the world of sport for local promotion and give them an ambassadorial title. Female racer, Esmee Hawkey, supported the launch of a new British Porsche centre last year and Porsche uses German actor, Richy Müller, as a regional ambassador. Former works drivers including Hans Stuck and Derek Bell often turn up at motorsport gatherings – Stuck was recently seen at the GP Ice Race – but Bell’s close associations with Bentley mean he is a more occasional appearance.
Porsche Brand Ambassadors: Celebrities
“Actors who want to go racing” has been one steady source of mainstream celebrity content and unofficial ambassadors for Porsche, including a Le Mans association with actor, Patrick Dempsey and the recent series of YouTube videos with actor, Michael Fassbender. Building a brand ambassador is a serious marketing investment, so pop stars and celebrities who may go out of fashion, vanish from the hit parade or be embroiled in a drug scandal overnight are notably less attractive for a company with core values of integrity and sustainability.
That said, scandals may not spell the end for Porsche brand ambassadors: Sharapova’s drug issues did not preclude a continued association with Stuttgart. Sharapova’s recent retirement announcement includes her intention to continue as a Porsche ambassador and her popularity in Russian and global high society is an important consideration. When it comes to brand ambassadors, some things rank higher than others (and we all make mistakes).
While its true that Porsche products are the company’s greatest ambassadors, the use of human brand ambassadors extends the reach of its media output. However, it is also worth remembering that everyone who drives a Porsche plays some small part in promoting the brand. Using confident, high achieving brand ambassadors may be one way to override any negative impression left by the guy in a Porsche who cut you up yesterday.
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After weeks of unmissable promotion surrounding the new Porsche Taycan at the end of 2019, the buzz around Porsche’s first full-electric vehicle seems to have gone a bit quiet. This may be somewhat appropriate for an EV but other factors are also at play.
I recently caught up with a friend who told me about delayed delivery of a large order of Porsche Taycans for a project he is involved with and it seems the delays have been well known for months. InsideEV ran a story on delayed Porsche Taycan deliveries in November 2019, sharing a Porsche email advising customers of an eight- to ten-week delay in delivery.
“Taycan is our first fully electric sports car. The car is developed from scratch and manufactured in a brand new factory. All Porsche employees have worked with full pressure to start delivering Taycan as scheduled in January. Still, as a result of the enormous complexity surrounding the production of Taycan, we must report that unfortunately the delivery dates are somewhat delayed.
“We currently expect delays of around eight to ten weeks, and a new production time for your car will be communicated through your seller as soon as this is ready. We strongly apologise and guarantee that we will do everything we can to deliver your Porsche Taycan as soon as possible.”
Delayed gratification is not part of the plan for those paying upwards of £83,000 (basic Taycan 4S RRP) for their new electric sports car. I don’t know how many Taycan orders Porsche has received, but I’ve spoken to lots of people – everything from builders to opticians (and not all Porsche enthusiasts) – who have one on order.
Corporation and Company Car Tax: EV exemptions
Full order books are not much of a surprise, given that UK corporation tax allows 100% of the list price of a full EV to be written off in the first twelve months and depreciation (if there is any such thing on a Taycan) will certainly be lower than the tax that would otherwise be payable on that money. Tax changes which come into effect in 2020/2021 will help to further reduce company car tax bills as zero emission, 100% electric cars will pay no company car tax in 2020/21, 1% in 2021/22 and 2% in 2022/23.
As the UK tax year runs until early April, corporate buyers may be content to wait for the new plate and the fine weather for their Taycans, but shiny happy people in the permasun regions might feel a bit different.
Taycan is Top Gear Car of the Year
Amongst the plaudits for Porsche Taycan towards the end of last year was the Car of the Year crown from BBC Top Gear. “It takes all of about three minutes driving a Taycan to realise that Porsche has permanently altered what people who love conventional cars will think of electric cars,” said the Top Gear editors.
“It hints at what will be possible with an electric platform in the future. Lower emissions, yes, but also a world of speed and capability that might make those who have hollered for the death of the internal combustion engine wonder if they’ve actually opened a Pandora’s box of raw speed.”
EVs are certainly changing the game on a daily basis and the torque from a standstill is jaw-dropping, but Car of the Year on such a low volume machine for the privileged few (builders and opticians included) is a bit of a head scratcher. Then again, Top Gear has probably never been regarded as a consumer motoring thought leader. What Car? magazine gave its overall Car of the Year award to the brand new Ford Puma, which makes a bit more sense.
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Sitting on the sofa after the Sunday night dog walk, flicking through the TV channels to pass a few minutes before some antiques programme got started (saddos r us), I chanced across the highlights from the Formula E racing at Riyadh in Saudi Arabia.
Saudi Arabia has put an estimated $260 million into a ten-year deal to host the Formula E season opener: part of developing an improved cultural infrastructure and staking out a green future as it diversifies from oil. Watching the event, I can’t say that I was struck by the wedge. A quick search revealed that, despite investments of almost $150 million last year, the series reported a $29 million loss for its fourth season, bringing Formula E’s total losses up to circa $160 million. Wow.
Andre Lotterer on the podium for Porsche
Two races were held in Riyadh at the weekend. Porsche driver, Andre Lotterer, came second in the first race, but was penalised in the second race for overtaking a damaged car just as the race went to safety car. He was classified fourteenth overall in race two, with team mate, Neel Jani, finishing just in front of him.
Royadh (or Diriyah) circuit was a bit better than some of the Formula E tracks I’ve seen. The surface was dusty and the layout was tight in places, but that made for some interesting moves. I’ve not found Formula E particularly entertaining to watch in the past but, as I’m keen to see how Porsche measures up, I’ll follow the series for a few races more and see how my views develop.
Watching any sort of racing always gets the blood up a bit and Formula E is a roll call of star drivers, but the more obvious names don’t always finish up front. Watching drivers that I’ve never seen before taking on names I know well from other series is interesting, even if the combination of unfamiliar liveries and squirty tracks with choppy TV edits makes some of the action a bit tricky to follow. That should get easier.
Former McLaren F1 driver, Stoffel Vandoorne, had a good weekend in Saudi, finishing on the podium for Mercedes in both races after taking a surprise lead. “This is the most competitive series I have ever raced in,” Stoffel said. “One can enjoy pure racing here, as opposed to Grand Prix racing, which is a bit of a fake world in which everyone gets along well but above all has their own interests to defend.”
I hear what Stoffel is saying but Formula E looks plenty fake to me in places: fountains of money tend to have that effect. A friend has just moved from endurance racing into Formula E and she is not enjoying the culture that much. “I work between two silent accountants and a group of engineers, all of whom spend their time creating ways to spend truckloads of money. It’s bollocks.”
Sebastian Vettel has also spoken about being nonplussed by the series and claims many Formula E drivers are just in it for the money. “To me, this is not the future,” the four-time F1 world champion told a Swiss newspaper, as reported by WTF1.
“E-mobility is currently very popular in the world, but anyone who is honest and identifies with motor racing does not think much of Formula E. The cars are not very fast and many drivers who drive there tell me that the driving is not very exciting.”
I thought the racing in Riyadh was a bit more exciting than previously, but maybe I was talking myself into that because Porsche had entered a team. My mind is not made up as yet; I need to watch more of it.
I will either get over the soundtrack or it will put me off forever. Whirring motors and cars ramping over temporary kerbs sounds like an indoor electric kart track, but without the funs of watching karts in full drift around every corner. If the racing is actually good, then I guess it works out, but I’m still not sure it’s my cup of tea. That does not surprise me too much, as the series is still pretty new and everyone knows about new things for fifty year-olds. You probably know Douglas Adams’ rules on our reactions to technologies:
Anything that is in the world when you’re born is normal and ordinary and is just a natural part of the way the world works.
Anything that’s invented between when you’re fifteen and thirty-five is new and exciting and revolutionary and you can probably get a career in it.
Anything invented after you’re thirty-five is against the natural order of things.
Formula E winds me up a bit on many levels: the money that manufacturers are throwing at the series instead of designing better road cars (Jaguar has thrown something like $40 million at it to date), the short races, the lack of outright speed and the small city tracks and convoluted add-ons. Extrapolating that bandwagon to the industry as a whole, the marketing surrounding electric mobility seems to vastly outweigh the amount of affordable technology: where are the electric superminis that do a week on a charge and cost £10k to buy? I’m ready to buy one of those right now – I’m sure most of us are.
As for the racing: well, my kind of racing pits head-to-head speed and reliability over races taking anything from two hundred miles to twenty-four hours and I don’t know that Formula E will ever match either of those things.
Maybe that is good for the planet, and I am all for that, but we are allowed to lament the slide that manufacturer defection will inevitably weigh on what older generations will come to call “proper” motorsport. People say that shorter races make the racing harder, so maybe I just need a shorter attention span. Maybe if this is all there will eventually be, we should either get used to it, stop watching racing or get into some kind of ball game.
I am fully aware that this may come across as some some old bloke moaning, but I did enjoy some of it: it’s just nothing like as good as what I usually watch! We will see how the season pans out.
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Ferdinand blogs my freelance adventure with Porsche at the centre. To support the blog or engage with me in other ways, you can:
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