Porsche not immune

Porsche has seen dark times before -- before the introduction of the original 986-model Boxster, to be precise. Over the past decade though, the German car company (synonymous with high-performance cars for the rich and famous) has built up its cash reserves from profitable operations in the US.

Now, with the US economy drying up, even buyers with the sort of conspicuous and disposable income to lash out on prestige sports cars are holding off the purchase of such luxuries until there's a sign that the US economy is picking up again, whenever that might be.

It's not like US buyers are deserting Porsche by the thousands, but the company did record 39 per cent fewer sales in October than 12 months before, in October 2007.

Admittedly, Porsche has other explanations for the sales decline. All-wheel drive variants of the 911 range only went on sale in the North American markets from October 25, meaning that the iconic sports car remained unsupported by those variants for most of the month. Despite the 40 per cent shortfall, Porsche still sold 611 units of 911 models.

The Boxster (including the Cayman coupe variants) was arguably hardest hit by the sales slump, with Porsche's North American dealers moving just 164 units for the month -- a 78 per cent reduction from the October 2007 figure.

Sales of the Cayenne SUV are down 39 per cent for the month, but sales of the V6 variants actually improved over the total for September '08 -- perhaps more than anything else, a sign of changing buyer types and tastes in the US market.

If there's one thing about having been through economic and financial adversity in the past, it means that you're better prepared for it in the future (or the present, for that matter). With Porsche CEO Wendelin Wiedeking having been with the company long enough to remember the last time the company was in trouble, there's little doubt that the manufacturer will cope better this time around.

Indeed, there's already talk at Porsche of adjusting production output to match the current level of demand -- a safe bet for Porsche in the short term, but what does it say for the longer term?

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