Discuss Detroit Archives - Beginning January 2007 Porsche pulls out of NAIAS Previous Next
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Genesyxx
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Username: Genesyxx

Post Number: 743
Registered: 02-2004
Posted on Monday, June 11, 2007 - 1:28 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

The Detroit News

Porsche said today it is pulling out of the North American International Auto Show in favor of marketing efforts that more directly reach potential buyers.

The luxury sports car maker plans to focus on shows in areas where it has more customers, spokesman Tony Fouladpour said.

Also, he said, Porsche gets better results when it spends its marketing dollars getting prospective customers into vehicles -- such as at performance-driving lessons held at local dealerships -- than at passive events like the auto show.

"People are much more apt to buy if they drive the cars," Fouladpour said.

Porsche sold 290 cars in Michigan last year, compared with 8,827 in California, 4,177 in Florida and 2,172 in New York.

The decision is not intended as a snub to Detroit and the region, said Fouladpour, noting that Porsche is supporting the revived Gran Prix race later this year, among other efforts.

"As a media showcase for new products, the Detroit Auto Show is clearly the premier international auto show in North America," says David Pryor, the company's vice president of marketing, in a statement. "Still, as Porsche strives to seek new, more personal ways to directly reach out and communicate to its potential customer base we need to look beyond the traditional consumer auto show--even ones that are highly renowned in the industry. For us, this is a strategic business decision that allows us to allocate our limited marketing resources more effectively."
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Iheartthed
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Username: Iheartthed

Post Number: 944
Registered: 04-2006
Posted on Monday, June 11, 2007 - 1:39 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Are they struggling financially?
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56packman
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Username: 56packman

Post Number: 1410
Registered: 12-2005
Posted on Monday, June 11, 2007 - 1:47 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

What's the difference between a porcupine and a Porsche?



The pricks are on the outside of a Porcupine
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Track75
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Username: Track75

Post Number: 2544
Registered: 10-2003
Posted on Monday, June 11, 2007 - 2:43 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

quote:

Porsche sold 290 cars in Michigan last year, compared with 8,827 in California, 4,177 in Florida and 2,172 in New York.

That's pathetic. It's barely enough to keep a single dealership afloat.
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Stromberg2
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Username: Stromberg2

Post Number: 27
Registered: 10-2006
Posted on Monday, June 11, 2007 - 3:02 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

They are the most profitable car co. in the world, just shifting resources elsewhere, it's too bad, as I always liked what they brought to the show.

Stromberg2, Porsche 912 owner.
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Thejesus
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Username: Thejesus

Post Number: 1382
Registered: 06-2006
Posted on Monday, June 11, 2007 - 3:07 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

maybe if you guys start bashing Porsche now they'll return like Comerica did...oh wait...

(Message edited by thejesus on June 11, 2007)
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Cambrian
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Username: Cambrian

Post Number: 1163
Registered: 08-2006
Posted on Monday, June 11, 2007 - 3:29 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

That does not sound right, I see those Porsche Cayennes all over the place. Did those folks all buy them on Ebay?
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Psip
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Username: Psip

Post Number: 1918
Registered: 04-2005
Posted on Monday, June 11, 2007 - 3:39 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Porsche sold 290 cars in Michigan last year

I think that is somewhat misleading. It does not account for leases.
I know one retired eye doctor that leases 4 of them.
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Iheartthed
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Username: Iheartthed

Post Number: 945
Registered: 04-2006
Posted on Monday, June 11, 2007 - 4:00 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

>Cambrian

Actually, now that you mention it, I did see a lot of Cayennes when I was there a couple weeks ago.
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Quinn
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Username: Quinn

Post Number: 1375
Registered: 01-2005
Posted on Monday, June 11, 2007 - 4:17 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

This is the dumbest thing I've ever heard of. It makes no sense.

Car companies don't come to NAIAS because of our region. It's purely because this is where the press gathers in one spot. Who cares how many cars you sell here.

This is a big mistake I feel...for them and a loss for them. Don't worry about this...they'll be back. SO STUPID.
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Iheartthed
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Username: Iheartthed

Post Number: 946
Registered: 04-2006
Posted on Monday, June 11, 2007 - 4:23 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

"Car companies don't come to NAIAS because of our region. It's purely because this is where the press gathers in one spot. Who cares how many cars you sell here."

Yeah... I mean, how many Maybach's do you see rolling around Detroit? or Rolls Royce's? or Maserati's? or Toyota's (lol)?
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Scs100
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Username: Scs100

Post Number: 1115
Registered: 12-2006
Posted on Monday, June 11, 2007 - 4:29 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Adding onto Iheartthed's post, how many Lamborghini's do we see here? I have seen a few Ferrari's around though. (Mainly in GP)
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Patrick
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Username: Patrick

Post Number: 4538
Registered: 10-2003
Posted on Monday, June 11, 2007 - 4:32 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

I guess you have to look at the amount of $$ Porsche has set aside for marketing and promos. Anyone know their budget for this sort of thing? IMO they will be back at the NAIS in na few years.
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Quinn
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Username: Quinn

Post Number: 1376
Registered: 01-2005
Posted on Monday, June 11, 2007 - 4:40 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Car companies have to be here. It's necessary to have the national press write about your product...and here is where they do it. They will feel like the girl who skipped out on the prom to watch a video with her parents...at around 8:00pm she'll run to her room and cry.

Patrick...I agree wholheartedly.
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Ndavies
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Username: Ndavies

Post Number: 2658
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Posted on Monday, June 11, 2007 - 4:50 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

I'm sure the National media will happily repost Porche's news releases from the Chicago or LA autoshows.

Just one less reason for the auto media to suffer through a wintery Michigan week. They would be happy if everyone went to the LA show.
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Detroit313
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Username: Detroit313

Post Number: 352
Registered: 02-2006
Posted on Monday, June 11, 2007 - 5:25 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

This is not a hit to Detroit. I is more of a loss to Porche to be leaving the biggest event. <313>
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Iheartthed
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Username: Iheartthed

Post Number: 947
Registered: 04-2006
Posted on Monday, June 11, 2007 - 5:36 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

"Just one less reason for the auto media to suffer through a wintery Michigan week."

I guess Porsche would actually have to be doing something news worthy in order to have such an effect...
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Sticks
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Username: Sticks

Post Number: 326
Registered: 08-2005
Posted on Monday, June 11, 2007 - 6:34 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

quote:

Are they struggling financially?


I don't think any company trying to buy/take over the VWA group is struggling financially.

quote:

That's pathetic. It's barely enough to keep a single dealership afloat.


FYI, there's five Porsche dealerships in Michigan. At that rate, they're selling about what a Maserati or Bentley store would sell per year but I don't think Porsche is even on their radar (sans maybe the 911 GT3).

quote:

Car companies don't come to NAIAS because of our region. It's purely because this is where the press gathers in one spot. Who cares how many cars you sell here.


I have to agree. As long as NAIAS remains the top car show in the US, manufacturers will still put vehicles on display.
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Yvette248
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Username: Yvette248

Post Number: 628
Registered: 10-2006
Posted on Monday, June 11, 2007 - 6:55 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Good riddance to them.
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Japes
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Username: Japes

Post Number: 22
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Posted on Monday, June 11, 2007 - 11:22 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

It has to do with the way floor space allocation is set at NAIAS, it is based on Market Share in the Detroit area, so by selling so fewer cars their display area shrinks.

Them pulling out may light a fire to get Cobo expanded which all the auto companies desperately want, if they loose other manufactures it could be the end of it being the International Show which means the 500+ million the show generates will be decreasing as well.
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Quinn
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Username: Quinn

Post Number: 1377
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Posted on Monday, June 11, 2007 - 11:38 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Japes...that is ridiculous. Yes the NAIAS is sponsored by the local dealers, etc. etc. etc., but there IS NO calculation for allocation of floor space based on Metro Detroit Market Share. It's ridiculous.

Simply ludicrous. I have no data to back that up other than it's so stupid, that if it's true then the whole naias should be dismantled.

Yvette248, I agree to a point. They are still here (belle isle car race). I think it's more "Oh Porsche...someone is making a really dumb mistake in your executive team...fire them!"
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Detroit313
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Username: Detroit313

Post Number: 353
Registered: 02-2006
Posted on Tuesday, June 12, 2007 - 1:19 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Japes- I never heard of such a thing. Think about it, if it were based on market share in the area, there would only be 3/4 of a Maybach on display.

(That is the actual car being 3/4 on display). <313>
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Professorscott
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Username: Professorscott

Post Number: 433
Registered: 12-2006
Posted on Tuesday, June 12, 2007 - 1:26 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

It's very expensive to put on displays at trade shows (in any industry), so it only makes sense under two circumstances:

1. You directly sell at the show, or
2. You need the "buzz" from a show in order to increase sales generally.

I think nobody gets #1 out of the Detroit (or any other) auto show; it's not that kind of a trade show, so #2 is king. I'm not sure Porsche needs show-buzz at all, they are a niche marketer and the kind of person who drives a Porsche will do so whether they put on displays at auto shows or not.

Just IMHO.

By the way how does NAIAS "generate" $500 million? Where does that figure come from? Who gets that money? Is there a bank account somewhere that I don't know about that gets $500 million posted to it each year? I suspect every time someone in Detroit pays for a coney at Lafayette and it happens to be during NAIAS, that two dollars gets posted into this $500 million figure.
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Thejesus
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Username: Thejesus

Post Number: 1384
Registered: 06-2006
Posted on Tuesday, June 12, 2007 - 9:14 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

"This is not a hit to Detroit. I is more of a loss to Porche to be leaving the biggest event."

Could be the start of a trend though...
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Gistok
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Username: Gistok

Post Number: 4523
Registered: 08-2004
Posted on Tuesday, June 12, 2007 - 9:24 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Professorscott, I believe that $500 million figure was from David Littman, Comerica's chief economist. I always wondered about that figure, thinking it was quite optimistic.

(Maybe it includes the expense of people buying gasoline before heading down to the auto show!) :-)
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Patrick
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Username: Patrick

Post Number: 4542
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Posted on Tuesday, June 12, 2007 - 9:53 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Sometimes I get the feeling that the German automakers look down on Detroit, but are terrified of letting that be known to the public.
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Iheartthed
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Username: Iheartthed

Post Number: 948
Registered: 04-2006
Posted on Tuesday, June 12, 2007 - 10:16 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

"I don't think any company trying to buy/take over the VWA group is struggling financially. "

GM tried to take over Chrysler...
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Matt_the_deuce
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Username: Matt_the_deuce

Post Number: 747
Registered: 10-2003
Posted on Tuesday, June 12, 2007 - 10:56 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

"Sometimes I get the feeling that the German automakers look down on Detroit, but are terrified of letting that be known to the public."

Not to get into a nationalistic debate, or cultural one for that matter, but this is very true.
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Rb336
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Username: Rb336

Post Number: 116
Registered: 02-2007
Posted on Tuesday, June 12, 2007 - 11:11 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Perhaps the real reason Porsche is pulling out of the NAIAS is that they get lost in the shuffle -- they hardly ever debut anything in Detroit, so few people write about them.

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