While automobile companies on this side of the Atlantic determine how best to disassemble enterprise, elsewhere things are somewhat more positive. In contrast to the hard times seen by GM, Ford and Chrysler, Porsche has had a remarkable few years. So much so, that with the strong increase in sales, and the commensurate increase in profits, the employees of Porsche will be getting a significant bonus, and one larger than their bonus last year. I posted about the changes that went down at Porsche in the mid-1990’s, and as a result of those changes the successful strategy that has transpired. It would seem that Porsche is on the right track, and continuing to expand into new markets with new products. This will not last forever, as luxury automotive products can reach saturation in a market very quickly, but for the time it is a reality to be savored. Not fifteen years ago Porsche was on the brink of insolvency.
Porsche is, and has been, the world’s most profitable car company as of late. As a result, its 8,000 workers will receive a bonus of $7,350. Their bonus last year was $4,900. The increase is due to the fact that they sold nearly 98,000 cars and as a result profits rose by 3.4 percent to $10.5 Billion. Fifteen years ago Porsche’s sales numbers were decreasing towards 10,000 units.
That’s quite a turnaround, and I applaud the success. Porsche is an amazing case study in the value of decisive leadership, clear vision, knowing how to expand the value of a recognized and iconic brand, innovation across the board, and a belief in reinvention.
via Winding Road
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