Porsche is spending more money to expand its production capacity at its sites in Stuttgart and Leipzig, Germany. The sports car maker plans to invest over EUR700 million ($923.8 million) alone at its main Stuttgart site in the next five years, according to chief executive Matthias Mueller. Porsche has also announced investments of around EUR500 million to expand its Leipzig site.
The sports car maker is targeting to sell over 200,000 vehicles annually in 2015 or 2016 -- three years earlier than planned. Mueller said that the carmaker is planning to decide on a new model line in 2014. Porsche logged a five-percent surge in sales in August to 11,481 cars, and a 16-percent hike in deliveries in the first eight months of 2013.
The German sports carmaker is expected to top 150,000 deliveries in full-year 2013, higher than its 143,000 vehicle sales in 2012. Porsche posted EUR2.4 billion operating profit in 2012. Porsche’s parent, Volkswagen, managed to offset lower demand for its vehicle in Europe thanks to stronger earnings performance of its luxury brands. Porsche accounted for EUR1.29 billion of VW’s EUR5.78 billion operating profit in the first half of 2013.