Wall Street Journal Article

[USMA81]

A May 20 WSJ article indicates Germany has lost 100,000 auto jobs since 2019 and is expected to lose another 125,000 by 2035. Part of this is due to the move to EV’s which are simpler to build, but most of the losses are due to an “uncompetitive business environment:” high taxes and levies, costly labor, high energy costs (WSJ: by some accounts, double the US), and bureaucracy. This is causing “panick” in EU governments, and obviously within the German vehicle industry.

While I have truly enjoyed all of the Porsche vehicles I’ve owned, the article caused me to wonder if this brand loyalty for me is near an end. I hope not, but I’m slavishly focused on buying based on merit and value. Through the current Macan EV’s I own, I still feel I’m with the right brand, and that I have made good buying decisions. This was brought home to me two days ago when I had a Ford Mach-E EV as a rental. Driving on the miserable roads of NY, the car was horrific: full of rattles, terrible ride, other design decisions and driving characteristics questionable to me. Admittedly, it is not in the same class as the Macan, but I wouldn’t have it at any price. Still, I do wonder if my next vehicle will be Korean, Japanese or (probably not, but who knows) Chinese.

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[Reno]

It is now you shall buy VW or Porsche shares, NOW

 

[Wivenhoe]

I understand that the labour costs are very high in Germany and also very unionised. Mix that with high electricity costs and manufacturers look to build elsewhere. To control costs and reflect the ever changing market pressures Porsche are building the new Cayenne EV’s on the same line as the ICE’s. They then produce to follow orders rather than keep producing a model to keep a line productive.

I’ve been told that the dealers management are telling sales that no discounts are to be given on new Cayennes as production will match requirements and dealers won’t be flooded with models that aren’t selling, as they have found with the Macan after the initial rush to purchase a new model. Some buyers in the US are being told delivery will be late this year or early next. The UK orders are being processed much quicker so that may be down to increased US tariffs.

All this shows Porsche have recognised they made the wrong move into wholesale EV’s and manufacture must reflect the cars the market want. That said, residuals on EV’s have increased in line with the cost of fuel !

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