Agency Report –
German luxury carmaker Porsche on Friday said it has decided to keep internal combustion models in its programme for longer than previously assumed.
The Stuttgart-based company expects additional special costs of around €1.8 billion ($2.1 billion) this year. In total, the costs for the company’s reorganization this year now amount to €3.1 billion.
“We are currently experiencing massive upheavals in the automotive industry, which is why we are comprehensively reorganizing Porsche,” chief executive Oliver Blume said.
The move is in response to new market realities and customer needs, he added. In addition to new combustion engine models, successors are also to be developed for existing vehicles with combustion engines such as the Panamera and Cayenne.
By contrast, Porsche’s new large electric SUV, which was primarily aimed at the US market, will initially only be available as a combustion engine and plug-in hybrid.
The market launch of certain fully electric vehicles will also take place at a later date due to the delayed ramp-up of e-mobility. With a mixture of different drive systems, the aim is to fulfil the entire range of customer requirements, Blume added.
Porsche has been investing in new combustion engines again since the beginning of the year.
The realignment is intended to have a positive impact on the financial results of future financial years, the company said.
This year, however, the turnaround is a huge burden: the operating return for the year as a whole is likely to be only slightly positive at up to 2% – meaning that less profit will remain from the targeted turnover of €37 to €38 billion.
Most recently, Blume had still expected 5% to 7%.
The sports car manufacturer has slipped further and further into crisis in recent months.
Sales have left a lot to be desired – especially in China and the United States.
US tariffs also had a negative impact on business. As a result, profits plummeted. Group net profit from January to June was €718 million – 71% less than a year earlier.
Porsche therefore intends to make savings and cut jobs in the Stuttgart region. A further savings programme is now to be negotiated.
By Julian Weber and Marco Engemann
