Porsche Snubs Detroit Auto Show

By Mike Bartley

Porsche AG said last Monday it will pull out of the North American International Auto Show in Detroit, the largest in the United States industry, in favor of marketing efforts that more directly reach potential buyers. The luxury sports car manufacturer intends to concentrate on shows where it has more customers. The automaker plans to focus on shows in regions where it has more customers, spokesman Tony Fouladpour said.

Fouladpour said that Porsche gets better results when it spends its marketing dollars getting prospective customers into vehicles - such as at performance-driving lessons held at local dealerships than at events such as auto shows. "People are much more apt to buy if they drive the cars," he added.

Instead of having displays at many auto shows, Porsche decided to put a greater emphasis on personal marketing activities, such as local events where customers can test drive vehicles, said Fouladpour. "What we find typically is that the more people drive our cars, the more likely they are to buy them," he noted.

In 2006, Porsche sold 290 cars in Michigan, compared with 8,827 in California, 4,177 in Florida and 2,172 in New York. The decision is not intended as a snub to Detroit and the region, said Fouladpour, noting that Porsche is supporting the revived Grand Prix race later this year.
The North American office of Porsche said that it is re-evaluating its presence at traditional auto shows and wants to focus resources on interacting directly with potential Porsche customers to offer efficient performance like the Flowtech. "As a media showcase for new products, the Detroit auto show is clearly the premier international auto show in North America," said David Pryor, the company's vice president of marketing, in a statement. "Still, as Porsche strives to seek new, more personal ways to directly reach out and communicate to its potential customer base we need to look beyond the traditional consumer auto show - even ones that are highly renowned in the industry. For us, this is a strategic business decision that allows us to allocate our limited marketing resources more effectively."

The German automaker said that over the past two years or so, it has cut back from exhibiting at 23 North American auto shows to participating in nine such events. The news did not produce any buzz at Monday's golf outing for members of the Detroit Automobile Dealers Association who are also sponsors of the North American International Auto Show.

"There were no comments at all," said Carl Galeana, a Chrysler dealer and senior co-chairman of the 2008 auto show. "Porsche has been very, very good to us over the years. It's strictly a strategic marketing decision and I certainly respect it." Galeana said taht, if anything, Porsche's withdrawal is a chance for other auto show exhibitors to spread out. "It's a great opportunity for us."

Galeana said that he regrets Porsche's decision to leave and would welcome it back for future shows. The show is run by the Detroit Auto Dealers Association. "It's a shame because they're an iconic brand, but we respect their decision," Galeana said. "Certainly, they leave as friends. We hope to get them back someday.” Accordingly, next year Porsche in North America will only appear at trade shows in Chicago, Los Angeles, Miami, New York and Toronto.
The Detroit Auto Dealers Association has been pushing for a new or the expanded Cobo Center to host the show, but Porsche's departure is unrelated, he said. "I would love to say if we had more space Porsche wouldn't have left," Galeana said. "That really isn't the case. This is a marketing decision based on their sales."