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May 16th, 2008
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10 QuestionsWith Ale Novák10 Questions | Search restaurants | Archives September 20th, 2006 issue
Your company focuses on importing and selling luxury Porsches. Did your hobby become your job? Indeed, I can say that my hobby did become my job. I've had a passion for cars since boyhood. During that time, I developed my theoretical and practical knowledge of cars, which helped me work in the automobile industry.
Czechs are still not as wealthy on average as West Europeans, so the number of people who can afford luxury cars is not that big. What's the level of competition among luxury car dealers? It's certainly tough. On the other hand, the fight for customers is still not as hard as the battle for customers that mass car brands face. Porsche has such a strong appeal that the base of our clients is quite stable, and it's actually expanding with the growing efficiency of the Czech economy. We take our competitors quite seriously, but we also bear in mind the kind of quality we offer our customers. The numbers say it all: While we sold 17 Porsches here in 2001, the amount rose to almost 130 last year, and we also sold 6,000 cars of other makes.
Do you think Czechs buy luxury cars for the power and quality or to show their affluence? I would divide customers into two groups. The first group consists of 'heart cases.' Those people have a passion for cars, and they enjoy their design, efficiency and technical supremacy. The second group sees such cars as a tool for expressing their status in the society. Generally speaking, cars express their owners' positions in society. After the introduction of penalty points for violating road traffic, most drivers are afraid of being caught speeding. Is there still any point in buying fast cars? Well, penalty points are in force in other European countries, too, and people still invest in fast luxury cars there. Should a customer have sufficient financial resources for purchasing a luxury car and be addicted to a particular brand, not even penalty points could change his decision to buy such a car. There are still ways to fully enjoy your car. What do you think of the new penalty point system? I drive every day, and I'm in favor of penalty points. However, I do not support the system as introduced here. The strictness of the system is extreme, and I'm glad that there are efforts to soften it. I like dynamic driving, but always with an emphasis on safety. And the dangerous driving of many Czechs is really alarming. I think that all applicants for driving licenses should pass psychological tests. A fast car driven by a brainless driver is indeed a dangerous weapon. Following car sales in this country over the past few months, it seems that there is an increasing demand for smaller cars. Can you imagine a situation at which there would be no point for Mercedes to keep its Czech branch? I believe the growing demand for small cars should not affect the development of the demand for luxury cars. Luxury-car buyers are not so sensitive to immediate economic developments and changes in fuel prices. I hope the group of luxury car buyers will further expand in this country. The Czech market is certainly interesting for Porsche, and there is no reason to consider any catastrophic scenarios. Porsche is, and will continue to be, present in the Czech Republic. The Czech Republic is often labeled as heaven for automobile manufacturers. Why haven't luxury car producers opened assembly lines here? What doesn't exist now could very well exist in the future. The automotive industry has a long tradition in this country, and many carmakers have begun to realize that. There's a large group of Czech components makers delivering to luxury-car producers, including Porsche. Indirectly, the Czech industry therefore participates in the production of Porsches. Also, it is a little-known fact that the Porsche has its roots in the north Bohemian village of Vratislavice nad Nisou, the birthplace of Ferdinand Porsche. After leaving his motherland, he moved to Austria and later launched a consulting firm and design studio in Stuttgart, Germany. Your customers are mostly wealthy people. How do you perceive the efforts of the left-wing government to impose higher taxes on them? I disagree with it. Although the richest people would hardly suffer any major harm, I would not increase their tax duty. Even now, those people are paying above-average sums to the state coffers and the money does not reach the fields that it should reach, anyway. I'd rather focus on directing the cash flow and distributing the money to the areas where it is most needed. Would you agree with the introduction of flat tax? Personally, I like it, although we have no experience with it in the Czech Republic. I believe it would appeal to many people. However, given the postelection situation, I don't believe there is a chance of implementing it anytime soon. You sell luxury cars. What is your attitude toward luxury? I follow luxury cars. I like them, and I like the opportunity to drive them. Still, for everyday work and family life, I prefer driving bigger cars with powerful diesel engines. I've never lived for luxury. My priorities are different. Want your top manager to answer our 10 Questions? Send a message to Frantiek Bouc at fbouc@praguepost.com Other articles in Business (20/09/2006):
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