Porsche wants to double sales in South America

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News of March 21, 2001

Porsche wants to double sales in South America

Millions invested by dealers in anticipation of the Cayenne launch

Buenos Aires/Stuttgart. Dr. Ing. h.c. F. Porsche AG, Stuttgart, is expecting to double its vehicle sales in the Latin American countries in the business year 2002/03 (1st August). As Dr. Wendelin Wiedeking, the chairman of the board of management at the sports car manufacturers, explained at a press conference in Buenos Aires, Argentina, that the market launch of the "Cayenne" sports utility vehicle "would lay the foundation for a considerably higher business volume" for South America. This background also explains the "considerable investments of well over ten million dollars" by the dealers in Mexico, the Dominican Republic, Panama, Chile and Argentina.

Before the press conference, Dr. Wiedeking had officially opened two new showrooms in Mexico and had visited the importer in Puerto Rico which was the most successful in Latin America in the previous business year with over 100 Porsche sports cars sold. In view of the commitment of the dealers and the importers, he was confident about the continued development of the business on this sub-continent. In this year alone, four new dealers will be added to the two already existing in Mexico. In total, over 160 Porsche cars will be sold in Mexico in the current business year; according to the plans of the dealers, over 200 units will be sold in the following year and the launch of the "Cayenne" will immediately raise this figure to over 400 units.

Dr. Thomas Stärtzel, who has been the managing director of the most recent foreign sales subsidiary Porsche Latin America Inc. (PLA) based in Miami, USA, since last August, described a growth scenario in these markets which delighted Dr. Wiedeking. The total sales in Latin America will rise in the current business year by over 50 percent to almost 400 units, and even to 500 vehicles in the next business year. As a result, the sales in this major region will have doubled within two years by the end of the business year on 31st July 2001.

According to Mr. Stärtzel, a further doubling of sales will occur with the launch of the "Cayenne". At the Porsche press conference in Buenos Aires, the manager of Latin America was convinced that he could sell over 1,000 Porsche vehicles as early as the business year 2002/03.

As reasons for the relatively optimistic forecasts of growth for Porsche in Latin America, Dr. Wiedeking cited in particular the recent definite relaxations in the regulations and the reductions in tax concerning imported goods. For instance, in Mexico the import tax was reduced last year by 20 percent to the current level of 2.2 percent. This change is also the reason for the fact that CKD production of Porsche cars in Mexico was halted a long time ago. The cars are now delivered directly from Germany to Mexico.

(March 16, 2001)

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