RE: Porsche, made in Leipzig
RE: Porsche, made in Leipzig
Friday 14th February 2014

Porsche, made in Leipzig

Why Porsche's powerbase is now Leipzig not Stuttgart and a new logo is required



According to Porsche's own explanation, the company's famous emblem derives its stylised antlers and red and black colouring from the heritage of the local political region, now called Baden-Wurttemberg. The black horse in the centre, rampant on its hind legs, is a derivation of Stuttgart's city seal, itself a nod to the region's historical equine industry.

Porsche's Leipzig products the real cash cows
Porsche's Leipzig products the real cash cows
Should Porsche wish to update its emblem to better reflect these modern times, it should simply replace the red and black for yellow and blue, then whip out the big pony and sling in a roaring lion instead. Yellow and blue stripes and a lion, you see, make up the coat of arms of the industrialised German city of Leipzig.

Back in 1998, Porsche opened a second manufacturing facility a few miles outside of the city, 300 miles to the north east of its spiritual Zuffenhausen home where the sports cars are still built, for the production of its new Cayenne SUV. A few years ago, Porsche expanded the facility to accommodate the Panamera production line. It did the same again very recently with the addition of two new production halls for the Macan SUV.

It's been terrific for the local economy; the most recent expansion alone created some 1,500 new jobs, for which Porsche received 50,000 applications. The facility is now a world leader in automotive mass production terms, too, for it runs efficiently, the halls are eerily quiet with not a single industrial bang or clatter to be heard and the floors are spotlessly clean.

Cash cows of another type gaze at the factory
Cash cows of another type gaze at the factory
Once Macan production is up to full speed, the Leipzig plant will build in the region of 200,000 cars each year. As the Zuffenhausen plant produces around 50,000 cars annually, it's beginning to look increasingly like a rogue outpost that busies itself by knocking out a few sports cars.

The Leipzig facility also has an FIA-approved race track, an off-roading course for the demonstration of the Cayenne and Macan's off-road abilities to new customers, and, on the top floor of its impressive UFO-like hospitality centre, a museum, too. Porsche, it seems, has moved away from home and settled somewhere new.

Just as the house we each grew up in will always be home, Porsche's heart and soul will always belong in Zuffenhausen, or perhaps at its Weissach R&D facility a few miles away. As the production emphasis shifts inexorably towards Leipzig, though, Porsche every day becomes more a manufacturer of premium family cars, and less the builder of peerless sports cars.

50,000 Macans out of here, for starters
50,000 Macans out of here, for starters
The Macan, despite being Porsche's second SUV, represents a significant departure for the marque. While the Cayenne and Panamera reside within the upper echelons of the SUV and four-door luxury saloon markets respectively, the Macan is its very first mid-ranking non-sports car. It's the first Porsche that targets the mass market.

There's no doubting the quality of the Macan as a product , and it does remain true that Porsche exists to satisfy its shareholders; good business is good business. Such wider market models do also assure a steady supply of the kind of focused, uncompromising sports cars that we all get far too worked up about. But Porsche's sense of exclusivity and its authenticity as a sports car brand - the essence of its desirability - will have a snapping point, and following the launch of the Macan that exclusivity and authenticity are beginning to bow in the middle.

The Porsche brand isn't in danger yet, but when the Macan proves to be a runaway sales success, what will come next? Cheaper derivatives? A small saloon car? The pursuit of profit is healthy, but the mindless pursuit of absolute profit is absolutely mindless. Let's just hope that Porsche always keeps in mind that its heart belongs in Stuttgart, not in Leipzig.

Dan P

[Sources: Porsche, Wikipedia]

 

Author
Discussion

Hellbound

Original Poster:

2,515 posts

205 months

Friday 14th February 2014
quotequote all
Nobody in the office able to mock up a yellow and blue version with a roaring lion?



That lion does not look well.

Edited by Hellbound on Friday 14th February 10:10

Devil2575

13,400 posts

217 months

Friday 14th February 2014
quotequote all
OP said:
The pursuit of profit is healthy, but the mindless pursuit of absolute profit is absolutely mindless.
I'm not sure they really have a choice. These days it's sink or swim and could they really survive unless they moved into more profitable areas where sales volumes are higher?

f328nvl

507 posts

247 months

Friday 14th February 2014
quotequote all
I have never really understood the difference between being totally focussed on profitability and mindlessly pursuing profit.

Porsche makes cars, just like lots of other companies. If people like them great. If not, Porsche won't make cars anymore, just like lots of other companies. It isn't a religion, it's a brand.

smilo996

3,832 posts

199 months

Friday 14th February 2014
quotequote all
How odd we rarely or never see such glowing marketing for British Sportscar companies in Pistonheads. Getting very tired of the Porsche love in. They are completely and 100% owned by Volks Wagen, which is where Porsche started. They are trying to make out the Macca is not a reskinned Q5 Audi, which of course it is. The future will see more tech creap from VW and Audi into Porsche. So it will simply become another division of VW, with less differentiation that Lambo or Bentley.

Hellbound

Original Poster:

2,515 posts

205 months

Friday 14th February 2014
quotequote all
smilo996 said:
How odd we rarely or never see such glowing marketing for British Sportscar companies in Pistonheads. Getting very tired of the Porsche love in. They are completely and 100% owned by Volks Wagen, which is where Porsche started. They are trying to make out the Macca is not a reskinned Q5 Audi, which of course it is. The future will see more tech creap from VW and Audi into Porsche. So it will simply become another division of VW, with less differentiation that Lambo or Bentley.
It's not though. Two thirds of the parts from the Q5 have been replaced or heavily modified. To simply call it a 're-skinned Q5' just isn't accurate.

Ozzie Osmond

21,189 posts

275 months

Friday 14th February 2014
quotequote all
"Once Macan production is up to full speed, the Leipzig plant will build in the region of 200,000 cars each year. As the Zuffenhausen plant produces around 50,000 cars annually, it's beginning to look increasingly like a rogue outpost that busies itself by knocking out a few sports cars."

I bet Lotus wouldn't mind a slice of that action! Shocking lost opportunity thanks to the twin disasters of Kimberley's Evora and Bahar's ridiculous dreams.

goron59

397 posts

200 months

Friday 14th February 2014
quotequote all
Hellbound said:
smilo996 said:
How odd we rarely or never see such glowing marketing for British Sportscar companies in Pistonheads. Getting very tired of the Porsche love in. They are completely and 100% owned by Volks Wagen, which is where Porsche started. They are trying to make out the Macca is not a reskinned Q5 Audi, which of course it is. The future will see more tech creap from VW and Audi into Porsche. So it will simply become another division of VW, with less differentiation that Lambo or Bentley.
It's not though. Two thirds of the parts from the Q5 have been replaced or heavily modified. To simply call it a 're-skinned Q5' just isn't accurate.
My thoughts too. A failure in critical thinking and a lack of understanding of how businesses work.
Still, he's far from alone.

Rich1973

1,278 posts

206 months

Friday 14th February 2014
quotequote all
Hellbound said:
It's not though. Two thirds of the parts from the Q5 have been replaced or heavily modified. To simply call it a 're-skinned Q5' just isn't accurate.
That never stopped the endless mickey taking of the X-type though did it?

Frimley111R

19,230 posts

263 months

Friday 14th February 2014
quotequote all
Ozzie Osmond said:
"Once Macan production is up to full speed, the Leipzig plant will build in the region of 200,000 cars each year. As the Zuffenhausen plant produces around 50,000 cars annually, it's beginning to look increasingly like a rogue outpost that busies itself by knocking out a few sports cars."

I bet Lotus wouldn't mind a slice of that action! Shocking lost opportunity thanks to the twin disasters of Kimberley's Evora and Bahar's ridiculous dreams.
TBH, both were trying so do something with next to nothing after many years of management failures. They're improving quickly now but Lotus have never been a 'competitor' for Porsche, just an alternative to them. It would take decades to catch up and huge changes and investments. Look at Lambo with its wealthy parent, its not really harassing Ferrari much is it?

Quickmoose

5,340 posts

152 months

Friday 14th February 2014
quotequote all

kambites

71,475 posts

250 months

Friday 14th February 2014
quotequote all
Quickmoose said:
That, I'd like to see. Especially if they do an estate version.

Martin 480 Turbo

716 posts

216 months

Friday 14th February 2014
quotequote all
The author of this article seems to be slightly over his
head with the economic ramblings.

Porsches first try with a mass market car was a long time ago:



The Macan fits much better into the current Porsche Portfolio than
the 924 complimented the 911.



Edited by Martin 480 Turbo on Friday 14th February 10:42

Ozzie Osmond

21,189 posts

275 months

Friday 14th February 2014
quotequote all
Frimley111R said:
Look at Lambo with its wealthy parent, its not really harassing Ferrari much is it?
That's just a sideshow - compare VW Group, Fiat Chrysler Group and Proton Lotus Group. Ouch.

Wills2

29,653 posts

204 months

Friday 14th February 2014
quotequote all
smilo996 said:
They are completely and 100% owned by Volks Wagen, which is where Porsche started.

So it will simply become another division of VW, with less differentiation that Lambo or Bentley.
Wrong, it's more complicated than that, Porsche holdings se own over 50% of Volkswagen AG which in turn has Piech as its chairman (Grandson of Ferdinand)

He has developed the VW group into what it is today so you could say the Porsche family has been running VW AG for years not the other way round.

The Cayenne was jointly developed with VW, so it's not a re-skinned VW per se, you could view the Touareg as a re-skinned Porsche just as easily.



Devil2575

13,400 posts

217 months

Friday 14th February 2014
quotequote all
I don't think it matters at all what other cars Porsche makes.

I don't really care much about the notion of 'brand dilution' although it clearly worries some people.

Audi make a whole range of cars and it hasn't stopped the R8 being great.


5lab

1,919 posts

225 months

Friday 14th February 2014
quotequote all
Martin 480 Turbo said:
The author of this article seems to be slightly over his
head with the econimic ramblings.

Porsches first try with a mass market car was a long time ago:



The Macan fits much better into the current Porsche Portfolio than
the 924 complimented the 911.
I'd argue the 912 and 914 were both mass-market aimed porsches, and both were decades before the 924

OlberJ

14,101 posts

262 months

Friday 14th February 2014
quotequote all
kambites said:
That, I'd like to see. Especially if they do an estate version.
Like the Panamera Shooting brake that they showed a short while ago? Looked fantastic.

Guess this would be more A4 sized than A8 sized mind you.

Hellbound

Original Poster:

2,515 posts

205 months

Friday 14th February 2014
quotequote all
kambites said:
Quickmoose said:
That, I'd like to see. Especially if they do an estate version.
I was just reading that. As always Porsche are being very shrewd; risk partially cannibalizing Audi sales in order to go after BMW buyers.

In return BMW are expanding their 'i' electric car line-up, offering hybrid SUV's and x-drive passenger cars, and...taking aim at the bottom end of Audi and VW with their new FWD models (eg. 2 series active tourer).

It's VAG versus BMW with MB sitting back and watching how things pan out.

kambites

71,475 posts

250 months

Friday 14th February 2014
quotequote all
OlberJ said:
kambites said:
That, I'd like to see. Especially if they do an estate version.
Like the Panamera Shooting brake that they showed a short while ago? Looked fantastic.

Guess this would be more A4 sized than A8 sized mind you.
Yes, like the Panamera shooting brake but six inches narrower, a foot shorter, and 300kg lighter. smile

Quickmoose

5,340 posts

152 months

Friday 14th February 2014
quotequote all
Hellbound said:
It's VAG versus BMW with MB sitting back and watching how things pan out.
interesting synopsis, whilst BMW has but the one badge (with perhaps Mini) VAG have 5!...witht he whole brand dilution argument gaining momentum, it would seem BMW are about to be devalued quite a bit...
(but then Mercedes Benz make taxis, vans and go d knows what and they're still seen as 'premium')

This must be the battleground...keeping your premium brand...premium... in the face of market domination and mass ubiquity..