Global recession? Time to buy more Porsches then!
Despite the worldwide economic recession, it seems people are buying more Porsches than ever before! Porsche Automobil Holding SE, Stuttgart, reports that the company has set new records in the business year 2007-08, with profits, turnover, sales, and production reaching new all-time highs.
The business year 2007-08 was the most successful year ever in the 60-year history of Porsche, with Group profit before taxes increasing by 46 percent to 8.569 billion Euro. This significant jump in profit was again due to special influences in connection with the holdings in Volkswagen AG, Wolfsburg, Germany.
Porsche’s operative earnings before taxes, corrected for special effects from hedging operations as well as the interest result of Porsche SE, amounted to around one billion Euros. Increased development costs incurred (for the Panamera, for the hybrid drive in the Cayenne, for new, reduced fuel consumption engines and for new vehicle models etc.), proved a burden on this result.
Porsche’s sales growth was fuelled first and foremost by the Cayenne series. Increasing by 34 percent to 45,478 units, sales of the all-wheel drive four-door Cayenne reached a new record level. Sales of the 911 model series, amounting to 31,423 units, were only 16 per cent below the previous year’s very high figure. The Boxster series, which also includes the Cayman, accounted for a total of 21,747 units sold, 16.8 percent less than in the previous business year.
Porsche’s total production in the business year 2007-08 was 105,162 units, an increase of 3.3 percent. The number of Porsche Group employees was also up 5.5 percent to 12,202.
However, Porsche Automobil Holding SE expects a significant drop in sales in the current business year 2008-09. The signs of a severe decrease in demand in the automotive industry are unmistakable the world over, and it is virtually impossible to calculate further developments, particularly in the USA, the largest single market for Porsche. However, a slump in demand for Porsche’s cars in the US, Japan and Europe may at least partially be offset by the significant surge in demand in Asia, including India.
Production at the company is being scaled down to reflect actual demand in the market. Porsche’s Zuffenhausen plant will remain closed on seven days up to the end of January 2009, after production ceased for the first time on 21 November 2008.
Porsche expects the next significant move ahead in the upcoming business year with the launch of the four-door, four-seater Panamera Gran Turismo.