Tech takes priority in Porsche’s new strategy
STUTTGART: Steve Jobs trained consumers too well, says Kjell Gruner, the new president and chief executive officer of Porsche Cars North America Inc. And now car companies have a lot of catching up to do to match Apple Inc.’s standards for user interface.
“With their ecosystem and their seamless customer experience, they have shaped the customer expectation,” Gruner says of Apple. That has a direct impact on how people feel when they get into—or shop for—a piece of technology as big as a car. “We have to integrate [digital] with the physical experience because we are a very, very physical product. If you don’t have digital experiences, you are not on the radar screen. You’re irrelevant.”
Digital experience includes everything from an electric vehicle turning itself on and instantly syncing with your phone the moment you step inside, to an app that lets you build your own “dream garage” of cars, to being able to download performancerelated software directly to the vehicle.
On a private video call on April 21, Gruner spoke admiringly of the instantaneous, seamless nature of Apple’s integration into daily life. The expectation now extends to cars, he says, which makes staying relevant “tricky” for the 90-year-old automaker that cut its teeth producing naturally aspirated, manual, decidedly analog racing machines.
Indeed, when Porsche executives talk about future plans, they typically focus on improvements and upgrades to those heritage-inspired 911s that titillate longtime fans, as well as the heightening luxury in its SUVs, which help expand its market share. For Volkswagen Group’s top-earning brand, that’s long been enough to generate passion among die-hard customers, spurring record sales in recent years for the Stuttgart, Germanybased automaker.
In the first quarter of 2021, Porsche sales were up 36% from a year earlier, to 71,986 units sold globally. The number was pushed mainly by demand in China, its largest market. But while car buyers in China and Europe might happily wait six or nine months for a special color combination or track spec on their new car, Gruner says, Americans expect instant gratification. Phone apps, online configurators, social media, and even video games have made U.S. consumers more discerning and particular than ever about car culture—and what they want for themselves. “They have a certain view of what configuration they want,” he says. “And also, they want it tomorrow.”
Gruner says digital products both inside and outside the car will actually enhance the driving experience for Porsche’s cadre of loyal enthusiasts, including those hesitant to accept new vehicles such as the Taycan and other EVs, which can sometimes seem more like appliances than machines.