Taycan set to drive Porsche sales

Porsche expects U.S. retail sales to increase 17 percent over last year, the automaker told dealers at its NADA Show make meeting last week.

Much of that momentum will be powered by Porsche's newest nameplate, the Taycan. Porsche projects U.S. sales of the electric fastback to double this year, dealers were told.

Porsche delivered 4,414 Taycans last year, a number that could have been greater had the pandemic not halted production just as U.S.- market Taycans were getting ready to be built.

Dealers asked about the prospect of an all-wheel-drive version of the entry-level Taycan. Porsche executives said they are pushing for the variant but noted it could be at least two years away.

Porsche knows the "competition demands it and the dealers need it," said Mike Sullivan, chairman of the Porsche Dealer Board of Regents and owner of the LAcarGuy dealership group in Southern California, which includes Porsche South Bay in Hawthorne.

Strong sales also drove dealer profits. Dealer return on sales hit 4.4 percent last year.

Dealers at the meeting clamored for more product. "The biggest challenge in the network right now is inventory shortages, which is a good problem to have," said Greg Gates, vice president of Swickard Auto Group, which operates a Porsche store in Bellingham, Wash.

While strong demand for Porsche's iconic sports cars exacerbated the shortage, pandemic-related production shutdowns in Europe last year helped drive it. Dealers said they're especially feeling the pinch in 911 supply. December was the best-ever month for 911 sales, with more than 1,500 deliveries.

"We're basically sold out," Sullivan said.