This after record sales…
An old economic principle is that prices will increase for a product to the point the market will bear before sales fall off. Porsche must believe it hasn’t reached that tipping point yet because according to a report from Robb Report, it’s preparing to up prices by 4 to 8 percent in the US and Europe for Q3 and Q4 2023. This comes after the German automaker posted a $2 billion operating profit for Q1 2023.
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In a year-over-year analysis, Porsche deliveries in the first quarter of this year were strong, increasing by a whopping 18 percent. Over 80,000 cars were turned over to customers, so if you’ve noticed a lot of Porsches in your neck of the woods, that might be why. Ever since the pandemic, premium brands have been riding high as sales for everything from Bentley to Rolls-Royce have soared.
Porsche reportedly is hiking prices because productions costs are increasing. Considering the out-of-control gallop of inflation, which is one hundred percent a government-created problem and has nothing to do with you as a consumer, that seems like a legitimate reason. However, it would be shocking to learn none of the increase will go to lining Porsche’s pockets further.
Keep in mind Porsche as a brand absolutely mastered the optional equipment game long ago. With the ability to pump up a vehicle’s price by huge percentages through a la carte and packaged options, the automaker started to really squeeze customers who were hungry for a factory-customized ride with the famous badge.
What’s interesting about this move is the general forecast for the auto industry is that prices for both new and used vehicles will continue to fall. Perhaps Porsche believes it’s special enough to swim against the current?
Images via Porsche
