Porsche Passport Attracts Younger Drivers

The Porsche subscription service, Porsche Passport, is attracting much younger drivers than expected, according to the automaker executives.

The new subscription of the luxury car brand started in Atlanta last November.

“We engage people with a brand that they usually wouldn't,” said Klaus Zeller, CEO of Porsche North America.

“We're conquesting a target group, and engaging them with a brand, who do not want to commit to a three-year lease. They just want to go month by month and are willing to spend for that,” stated Zellmer.

Passport Porsche, which provides subscribers to access Porsche vehicles through their mobile app, is currently available in Atlanta, the home of Porsche North American operation. It is also the home of the company hosting the app, Clutch Technologies.

The month-to-month subscription service of Porsche gives its consumers two price options, which are a flat fee of $2,000 or $3,000.

The subscription also includes a $500 activation fee and credit check, it covers tax and registration, insurance, unlimited mileage, and maintenance.

Smartphone users can download the app and start using it on the same day or schedule future rides.

Meanwhile, the subscription service may be part of what is giving the company a boost in an otherwise grim industry. As the U.S. new vehicle sales went down 2 percent last year, Porsche’s sales in the U.S. had its eight consecutive year of growth.

The overall value of the automaker went up almost 42 percent, as the market cap surged to $24.457 billion this month, compared with $17.26 billion last March.

According to Zeller, the growth can be attributed to many things, such as tax reform and modern lifestyle habits.

“It's driven by the overall economy,” Zeller stated. He added that 2017 was “fantastic year” for Porsche.

On the other hand, Fiat Chrysler’s sales dropped 13 percent in January and another 1.4 percent last month. The sales of Ford also went down 6.6 percent in January and 6.9 percent in February.

General Motors' sales went up 1 percent in January, but it dropped 6.9 percent last month.

According to J.D. Power and LMC Automotive, the U.S. auto sales increased 0.4 percent this month, compared with last year. However, the growth is most likely caused by increased consumer discounts, something that is not sustainable.

Sales of U.S. auto are expected to fall even further for the remainder of 2018.

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