The Atlanta Journal-Constitution
Porsche’s digital focus pays off
Atlanta-based company’s CEO credits push for quick sales rebound.
Automakers were expecting a major financial disaster as the coronavirus spread around the globe, shutting down assembly lines and causing sales to plummet.
Slowly, factories have begun to resume production and consumers seem eager to purchase vehicles.
Speaking during a videoconference call with reporters last week, Klaus Zellmer, president and CEO of Porsche Cars North America Inc. (PCNA), said he is very optimistic about the German
sports car company’s ability to continue its record growth.
“We’ve rebounded much faster than we predicted,” Zellmer said. “We seem to be more resilient.”
Zellmer is responsible for operations in the United States and Canada, and PCNA’s headquarters is located in Atlanta. Here in the U.S., the coronavirus forced most of the company’s 500 employees to work from home, but that has not halted its success, Zellmer said.
“We have not lost momentum,” he said of the shelter-in-place restrictions. “It works rather well.”
The pandemic in Europe forced the automaker to shut down its factory in Germany for six weeks. After opening recently, crews there are working to fill all of the orders for vehicles and should meet all of the requests by the end of the year, he said.
PCNA was riding a 10-year wave of steady growth before the pandemic. Sales increased by 213% since 2009, topping off with 61,568 vehicles sold last year.
For the first two quarters this year, 24,186 vehicles have been sold. The company saw decent sales in June, with 5,000 new and 3,000 certified pre-owned cars sold. However, in March and April, the company saw retail sales drop by nearly 50% from 2019.
Some of that decline was due to the fact many Porsche dealerships closed during the height of the COVID-19 outbreak.
Zellmer told reporters that while Porsche never took its eye off the product, it made sure to focus on the customer experience.
“We pushed for more digital access to our brand,” he said. “We put in a lot of work, and it’s paid off.”
The company has been aggressive in its digital initiatives for several years. Porsche Finder is a digital tool that allows potential customers to find used vehicles in the Porsche inventory.
Many dealerships allow customers to engage in virtual consultations with sales representatives, and customers can complete the entire purchase of a car online — including setting up a test drive.
The company also provides pickup and drop-off services for customers and added vehicle delivery at home. It extended warranties for three months and offered some payment deferrals during the pandemic.
“The customer experience is better than before COVID19,” Zellmer said.
The company has seen a significant increase in traffic to its websites, an indication Zellmer says shows interest in the brand is picking up. Weekly digital car configurations, where visitors to the website can design their own Porsche vehicles, have jumped 33% since April with 35,198 configurations the week of June 22.
The company still offers a subscription program — Porsche Drive (formerly Porsche Passport) — that allows customers to pay on a month-to-month basis for access to a variety of Porsche models.
Zellmer said the company’s research has shown younger people want to experience the brand but not commit to a purchase. The program is available in Las Vegas, San Diego, Phoenix, Toronto and Atlanta.
Zellmer said more than 80% of the subscription members are new to the Porsche brand and many enroll for at least four months.