Porsche mulls selling diesels in the U.S.

Porsche is considering selling diesel versions of its Cayenne SUV and the Panamera sedan in the United States, its biggest single market. The brand may also unveil Panamera variants with a diesel engine and a gasoline-electric hybrid powertrain at the Geneva auto show in March.

The models would help Porsche to meet demand for fuel-efficient cars that is growing fast even among luxury car buyers.

"We are discussing internally if we should introduce the Cayenne diesel in the U.S. this year. Also a Panamera diesel is an option," Bernhard Maier, the brand's sales and marketing chief, told Automotive News Europe.

Maier said Porsche has noticed that consumers in the U.S., where diesels currently have only a tiny market share, are increasingly choosing diesel cars. "We will make a decision soon," he said.

Porsche has sold a Cayenne diesel in Europe since early 2009. Last year, the company introduced a Cayenne gasoline-electric hybrid in Europe and the United States.

Maier said the diesel and hybrid versions account for 30 percent of Cayenne sales. "We expect the diesel and hybrid share to grow further in 2011," he said.

Porsche will not sell diesel cars in China because of poor fuel quality in the country, Maier said.

Geneva debut for Panamera diesel

Company sources told ANE that diesel and gasoline-electric hybrid versions of the Panamera are expected to be introduced before summer in Europe. The variants may be given a world debut at the forthcoming Geneva how.

Maier said Porsche deliveries rose by 27 percent to more than 97,000 deliveries in 2010 while order intakes rose by 49 percent to 114,000 units.

The company has seen a strong start to 2011 and expects total sales this year to be more than 100,000 units, Maier said. Porsche last posted annual sales of 100,000 in 2007 before the economic crisis hit luxury car sales.

"We have the highest number of orders right now in the company's history and are starting strongly in the new year. We will continue our growth story and will increase our deliveries to more than 100,000 units this year," Maier said.

Asia is the strongest growth region among Porsche's 113 global markets today with a sales plus of 40 percent in 2010 compared with 2009, Maier said.

Porsche CEO Matthias Mueller expects the brand to have annual sales of least 200,000 by 2018.

Maier predicts that the global passenger car market will grow up to 8 percent to 65 million cars in 2011 with China again be one of the main drivers of global growth.

"China's percentage of the global market will rise to 20 percent this year," Maier added.

The segments that Porsche is competing in will grow at the same rate as the total market, Maier said. "In our segments of sport cars, premium SUVs and premium sedans we expect a growth of 5 percent to 13 percent depending on the different markets. In China these three segments will grow up to 30 percent," Maier said.

Maier added: "In the U.S., we expect a significant growth especially for premium sedans." Last year, Porsche sold more than 25,000 cars and SUVs in the U.S.

Porsche plans to expand its 700-strong global dealer network, especially in the growth markets of Brazil, Russia, India and China. "In China we want to increase the number of dealers from 35 to 80 within the next three years," Maier said.

One third of Porsche's dealers are in the U.S. In Germany, Porsche has 86 dealers.

Maier said Porsche doesn't see the need to expand its dealer network in its established markets, except in isolated cases, although dealers will have to expand showroom capacity in advance of the launch of the brand's new small SUV code-named Cajun, which is due in 2013.

Maier said Porsche will put more effort on improving the training and professionalism of dealers. "Several studies show that premium is increasingly defined by service quality at the point of sale," he said.

In addition, the Internet, social networks, smart phones and tablet computers will have strong influence on customer liaison and support, and the way Porsche communicates with customers.

Porsche's model mix is changing. The Panamera, which was introduced as a fourth model at the end of 2009, accounted for 23 percent of Porsche's total sales in 2010. Cayenne SUV sales accounted for 40 percent. The remaining sales were 911 and Boxster/Cayman sports cars.

Maier said the percentage of Cayenne sales will increase further as the new generation, launched last year, becomes available in all Porsche's markets. The new 911 will be launch at the end of the year, further increasing the brand's sports car volume. Limited edition models launched last year, such as the 911 GT2 RS and the 911 speedster, are sold out.