Economy & Politics

Pandemic costs sports car manufacturers sales and profits

Porsche is losing a lot of profit and the long-term return targets are also a long way off. Photo: dpa / Marijan Murat

The Corona pandemic did not leave Porsche unscathed either. But compared to other car manufacturers, the sports car manufacturer still does well.

Stuttgart – The sports car manufacturer Porsche is also losing a lot of profit in the Corona crisis and sees its long-term return targets moving far away. Porsche AG’s operating result fell by more than a quarter to a good 1.2 billion euros in the first half of the year, as can be seen from the parent company’s Volkswagen annual report published on Thursday.

With sales of around EUR 12.4 billion, the return is almost 10 percent. Porsche has actually set at least 15 percent as a benchmark – and adheres to it. For this, further measures to increase efficiency will be taken, CFO Lutz Meschke announced.

In the first half of 2019, Porsche AG, which also includes financial services, had sales of EUR 13.4 billion and an operating profit of almost EUR 1.7 billion – a fine of EUR 500 million had already been deducted from the diesel affair.

Porsche still does well in comparison

As the reason for the decline, the VW report now gives the combination of corona-reduced sales figures and further high costs, especially for digitization and electrification. Porsche delivered almost 117,000 vehicles worldwide in the first six months of 2020 – a decrease of twelve percent.

Porsche emphasized that the company did well compared to many other car manufacturers, thanks to a comprehensive program to lower the breakeven point and the successful launch of new products. CFO Meschke did not want to make a forecast for the year as a whole. “We are optimistic that we can partially compensate for the dents in March, April and May. Of course, this only applies if there are no further setbacks from the corona virus, ”he said. “But we are doing everything we can to achieve a double-digit operating return on sales in 2020.”

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