Porsche Cayenne: More Valuable than the 911?

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July 15 (Bloomberg) -- Howard Davidowitz, chairman at Davidowitz & Associates and Bloomberg Contributing Editor Jeffrey Hayzlett discuss the growth of Porsche into one of the hottest brands in the United States and what that success means for high-end retail. They speak on Bloomberg Television's "Bloomberg Surveillance."

Porsche, it doesn't actually sell a lot of vehicles, but it's margins are so high that for american car dealers getting a porsche franchises like buying a gold mine.

Porsche has post it sales franchise past high-volume brands like chrysler and cadillac.

Plus porsche models like the 9/11 have some of the highest margins in the business.

The real turning point was when it began selling the cayenne suv in 2003. it was not just rich men who were driving a porsche.

Well off families could pile the kids into an suv that went for $60,000. i favorite moment was when carmela soprano got a cayenne.

Tony bought one for her.

It was like the pepper.

A big moment.

It became a car for housewives.

What?

You don't know the porsche?

My head is spinning on the sopranos.

A lot of porsche enthusiasts were upset about the cayenne.

It was supposed to be a sports car, and all of a sudden, it became a family car.

As you said, it went from older men over 50 who could afford to buy this car, and now they will have to share it with their second or third wife.

[laughter] that was the problem.

This was a very exclusive brand to mostly older men who probably left their wives.

That is what most of the guys that i know that on these cars.

They are usually single, showing off.

A lot of other carmakers went in there and came up with high- value suv's. i thought the car was a great car.

When i saw it, i said to my wife, you should buy one of these.

It wasn't a real spectacular environmental car.

It raises the question of how much you're willing to sacrifice a friend.

I cannot imagine ferrari putting out a family suv.

Howard davidowitz with us.

It is about aspirational america.

There is all the cynicism about retail and digital and sterile.

Baloney.

We still want to buy whatever.

Nothing changes.

Nothing has changed.

We aspire to things.

We are not france.

Down in the dumps.

We are a different kind of country.

When you look at this and the pulse of new york, i see you up and down and down 5th avenue, what do you observe on 5th avenue that in two years or five years will translate across america?

The first thing i look at are the rents.

I cannot believe this is the most expensive retail real estate in the world.

There is a big turnover.

By the way, it is double in tokyo where we happen to have an apartment.

It is double the rent on 5th avenue.

It is astounding.

By the way, the space is being sucked up like crazy.

Who is going to wind the high-end individual stores, -- win, the high individual stores, or department stores?

There has been no growth for 20 years.

It has been shrieking for 20 years.

It is not going to disappear, but it will be less and less of a factor.

Chanel, sarah, just opened their new wing.

It is the square footage of rhode island.

This text has been automatically generated. It may not be 100% accurate.

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