Porsche unveiled the Mission S concept car. The company calls it a preview of their new design identity. They also announced a turnaround plan. The plan involves selling fewer cars at higher prices to boost profits.
Read that again. Porsche thinks the path to profitability is making less product and charging more for it. This is the business strategy of a cocaine dealer, not a car manufacturer. But sure, let's apply drug cartel economics to luxury vehicles and see what happens.
The Mission S exists to signal that Porsche will now focus on "higher-end products." As opposed to what they were making before. Apparently the $200,000 Turbos and GT3s were the budget line. The poors were really getting their hands on those. Porsche had to do something.
They decided a concept car nobody can buy would solve everything. The Mission S will sit in a showroom. Journalists will photograph it. Then Porsche will build seventeen of them for sheikhs and tech executives who already own four other Porsches. Mission accomplished.
The turnaround plan makes perfect sense if you ignore basic supply and demand. Produce less. Charge more. Watch profits soar. This works until someone at Ferrari or McLaren remembers how to build a steering wheel. Then Porsche will be stuck explaining why they intentionally sold fewer cars during the only years people wanted to buy them.
Retail traders will see this headline and think it's bullish. Scarcity drives value. Limited production means exclusivity. They'll buy call options on Monday and spend Tuesday explaining to their wives why they're now trading luxury car manufacturer derivatives based on a concept vehicle announcement.
The Mission S previews Porsche's new design identity the same way a mirror previews your face. It's a car that looks like a Porsche, made by Porsche, announced by people who already work at Porsche. Truly groundbreaking stuff. Can't wait to not afford it in slightly different ways than I couldn't afford the last one.
Photo by Christian Ang on Unsplash
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