Porsche’s Macan Crossover Saves Car Maker From Mediocre 2016

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Porsche’s Macan Crossover Saves Car Maker From Mediocre 2016

© courtesy of Porsche

[cnxvideo id=”655402″ placement=”ros”]Ultra-luxury carmaker Porsche has trouble selling its traditional coupes. Sales of the iconic 911 dropped from 9,898 in 2015 to 8,901 last year. It also struggled with the sales of its full-sized sport utility vehicle, the Cayenne, the sales of which fell from 16,473 in 2015 to 15,383 last year. And its sedan, the Panamera, also lost sales, falling from 4,986 to 4,403.

It would have been a mediocre year for Porsche, but sales of its Macan crossover rose from 13,533 to 19,332. The newest member of Porsche’s line up is now its most successful.

For the full year, Porsche sales rose modestly from 51,756 to 54,280. The struggle to grow has to do with both competition and the general move away from sedans and coupes toward SUVs and crossovers. As the model lines of companies, which include BMW, Mercedes and Audi, add high-performance vehicles, Porsche’s sales get squeezed. And each of these manufacturers has a direct competitor to the Cayenne, 911 and Panamera.

[nativounit]

The Macan is not only a crossover, but one carrying a price that makes it available to a fairly wide segment of buyers. The base price for the Cayenne is $59.600. The Macan’s is $47,500. And the strategy of the Macan’s lineup of models follows that of all the other Porsche models. With the addition of larger engines, speed and luxury features, prices can nearly double.

The Macan is in the sweet spot of luxury cars, in both price and its crossover configuration. It is an odd model to save Porsche’s year, neither a true performance car nor a high-end SUV. But it worked.

[wallst_email_signup]

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Continue Reading

Top Gaining Stocks

CBOE Vol: 1,568,143
PSKY Vol: 12,285,993
STX Vol: 7,378,346
ORCL Vol: 26,317,675
DDOG Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ Vol: 4,367,433
CLX Vol: 13,260,523
SYK Vol: 4,519,455
MHK Vol: 1,859,865
AMGN Vol: 3,818,618