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Porche

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Case 23 “Porsche”

“Porsche” was found by Ferdinand Porsche in 1900 who had introduced the first hybrid (petrol/electric) vehicle and all-wheel-drive racecar. In 1946, Ferdinand’s son took over and began running the company. By 2011, the company produced five models with a combined total of 40 different trim levels. But in 2008, Porsche was caught in financial crisis and in 2010; Porsche was forced to give its keys to VW. But it was then been restructured and integrate Porsche into VW group and extend its product line and increase production.

Issues

During the economic climate in early 2007, oil prices were increased. It was a challenge for Porsche because their concern was the gasoline prices. Porsche were re-engineered many of its offerings to provide high gasoline efficiency and fuel efficiency. Another issue was on the mpg requirements for all cars in the US through an old emissions policy known as Corporate Average Fuel Economy (CAFÉ) whereby the 2009 legislation imposes high mpg requirement and higher penalty if never meet the requirement. Before, for Porsche and other high-performance car makers, they merely absorbed the minor fee. But if the issue are enforce (the CAFÉ regulations), Porsche are not able to sell cars in the US.

Current Strategies
VW has implemented “Strategy 2018” to keep profit margins high amid the unstable market and to become “the most successful and fascinating automaker by 2018”. Porsche goal is to help VW achieve its goals by sharing its technology with other VW brands, increasing production and diversifying the Porsche product line and also continued growth by value added investment opportunities and expansion.
They want to remain the world’s most profitable car manufacturer. As for customer satisfaction, employee satisfaction and product quality, they want to raise the bar even higher in terms of these three factors.

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