Wendelin Wiedeking, chief of a bank with attached sheet-metal fabrication named Porsche, used the quiet time between the holidays to sit down and pen a letter to all employees. He had to get it off his chest. Usually, this is the time for well wishes and brave forecasts. This time, it’s different. At least at Porsche. Even the most dopamine-saturated Porsche employee will be deeply depressed after reading Wiedekings new year letter. Sales of Valium and harder drugs, such as Schnapps, probably went through the roof in Zuffenhausen after the letter was opened. Automobilwoche (sub) obtained a copy of the inspirational message.
“Don’t let the high profitability of our company fool you. Dark clouds cover the skies. Due to the crisis in the financial markets, we are in a recession which we had not seen for many decades.” So far, so bad. Everybody who can read or watch TV knows that by now.
The missive continues with the usual yadda yadda of all auto makers being in a deep sales slump. Aber Achtung! Even Porsche, the company that could make more profits than sales, suddenly is not immune: “Despite being better prepared than most of the competition, we will not remain unscathed by the drops in demand.” Uh-oh. “Reduction in demand” usually is a precursor for “reduction in jobs.” As Wiedeking is looking ahead, the wisdom of building a Cayenne becomes as clear as it possibly can get:
Every Porsche worker will need one, because “in front of us lies a rocky road, and we don’t know its distance. Surviving the dry spell will demand our utmost dedication and attention.” Get your Cayenne, top up, and hydrate up, boys!
In case people haven’t gotten it at this point, Wendy spells it out: “We will lower our production. We’d rather build one car less than one too many. ” Still don’t understand where he’s going? Ok, write that down: “There is need for serious belt tightening.”
Ah, wait, there is one optimistic sentence in Wendy’s letter: “With the launch of the Panamera we will surely succeed in stabilizing our sales in the coming year.”
According to the German newspaper Der Tagesspiegel, Wiedeking made (at today’s rate) $142m in 2008. Good reason for the German business daily Handelsblatt to pronounce Wiedeking the “best paid auto manager of the world.” Compared to Wendy, Mulally and Wagoner earn minimum wage. A little belt tightening should be good for the waistline.
But Wiedeking didn’t write the letter to himself. However, he wrote, well, at least he signed it all by himself. Automobilwoche found it worthy to note that the letter was signed by Wiedeking only, and not by the other members of the Porsche board.
I don’t see the Panamera doing much for Porsche in any economy. The photos I’ve seen of it make me lust more for the cash than the car.
@Dr. No :
The photos I’ve seen of it make me lust more for the cash than the car.
Some of the photos taken so far aren’t from the best angles. Here’s another photo from the rear. Maybe this will change your mind.
http://en.wikipedia.org/wiki/File:Scarab_OHTM.JPG
Although, a source tells me that this may be a spy shot of Porsche’s version of the Routan.
It’s funny. When I pass the mouse over the words “recession” and “sales slump” that are highlighted in the text, a poster saying “Thank you America for Investing in Chrysler”, signed by Nardelli, appears.
What an appropriate use of advertisement!
I happen to think that the Panamera is a very handsome car which may well fit into the traditional S-class and 7-series market, particularly since both of these have evolved into charicatures of large German sedans. Along with the A-8 and Maserati Quattroporte, the Panamera offers a very elegant alternative to the now-bland BMW and the riced-out S-Class.
Unfortunately, the Panamera’s introduction at this point in an economic cycle will not likely produce immediate profits on the investment. It is possible that the continued yet puzzling attraction of the SUV will permit Porsche to weather the dry period better than in the past, but I think Wiedeking’s admonishment to batten the hatches is on the money.
edgett makes a good point. The 7series and S-class are both just as comical-looking as the Panamera, so it should fit right in. Make mine an A8, please. Or even (gasp) an LS460.
@edgett :
I happen to think that the Panamera is a very handsome car which may well fit into the traditional S-class and 7-series market, particularly since both of these have evolved into charicatures of large German sedans.
I have to see it in person before I can really judge it’s appearance. I can think of a number cars that looked bad to me in photos, but weren’t quite as bad in person. However, I’m ultimately swayed by the performance since I’m not the one that has to look at it. If the V6 VW powered version ends up being priced similar to an M5, the M5 is probably going to win out.
golf4me: Or even (gasp) an LS460. Agreed. While some buyers may want the more precise handling of the German sedan, none of these overweight pigs is really going to be fun to drive in any event. The LS460 has presence, amazing reliability and offers better resale value since it doesn’t cost $10k/year to “maintain” once out of warranty. We’ll see how the Panamera fares, but neither MB or BMW have been able to demonstrate that these rolling techno-demonstrations were much good once the warranty has expired. The beautiful if understated A8/S8 at least looks the part of the well-tailored suit.
One way or the other, the Panamera is a niche-within-a-niche car.
What did you expect Herr Wiedeking to include in his annual letter? If he hadn’t stated the obvious, he would have been considered oblivious to the economic calamity of epic pro-Porsche-shuns.
“…the future is covered with… ANTS!”
“Zis iss zee part of zee show verr ve dance!”
(“Sprockets” from SNL)
The LS460 has presence, amazing reliability and offers better resale value since it doesn’t cost $10k/year to “maintain” once out of warranty. We’ll see how the Panamera fares, but neither MB or BMW have been able to demonstrate that these rolling techno-demonstrations were much good once the warranty has expired.
If it has to be overpriced and European for the family sedan, definitely the Quattroporte. Getting that sheet metal and a Ferrari motor to boot is a hoot. Plus, you expect to fix a Maser – all the time – so no illusions to be had there.
I’m sorry, but if the 7 series gets much more bad press, it’s going to come back around the other side as a media darling…
I am SICK of the Luddites bashing it – the car had a HUGE black eye in 03, has recovered in quality spectacularly, got a visual (and functional) tweak in 06, and the 07-08 is loads better than my e38 both inside and out. The ride is nicer, tighter, and I LIKE driving a computer. If you can’t figure out how to get the best from a digital car, then you should keep your ass out of it. And the GTR. And anything else that comes out for the rest of forever.
Frankly I don’t see how a downturn in the auto industry would have any affect on an investment bank.
I see a guy who is trying to delude himself to clear his conscience in advance for what he is going to do(lay offs) by trying to say that management has done the right thing with the Panamera.
In reality, management took a gamble that paid off incredibly well, and the workers should get some of the benefits of that. The workers will definitely pay if the Panamera fails, which is fine as well. However, trying to build the case that the Panamera was a good idea before it’s proven is crap. Pure and simple. If this guy does unnecessary layoffs, it will bite him in the ass later when the best workers don’t want to work for his slimy ass.