Porsche expects lower profit gains amid huge expenses on EVs, new facilities

Article by Christian A., on February 24, 2016

Porsche, through its CEO Oliver Blume, recently announced that the automaker’s profit growth in the near future might be tempered as a result of its aggressive spending on facilities upgrades as well as research and development costs as the company is preparing to introduce new models in its lineup.

However, Blume told reporters that this slowdown in profit growth is only temporary, as the current spending would ultimately mean an explosive growth period for Porsche once these “many new projects in the pipeline” eventually get to the production line.

Porsche had earlier announced that it allocated 1 billion euros ($1.12 billion) to create the carmaker’s first all-electric car based on the Mission E Concept. The company’s new investment into the electric car sectors is likewise expected to generate more than 1,000 new jobs in its Zuffenhausen factory where the new cars will be produced.

According to Blume, Porsche did exceptionally well for 2015 with its annual reports to be available by March 11. Porsche, the second-biggest division of parent firm Volkswagen’s diversified automotive interests, managed to sell more than 200,000 vehicles last year - which is a company first – boosted by sales of its compact SUV Macan.

This figure translates to a 20% increases in numbers of cars sold when compared to 2014’s figure of 187,000 units.

Lingering US problems

The company is still feeling the effects of the US emissions scandal with CEO Blume admitting that during the Detroit auto show last January, Porsche submitted proposals of replacing catalytic converters and updating the software of 2013, 2014, 2015 and 2016 car models.

Feedback from US regulators is likely to be expected in the coming weeks which would cover the 13,000 Cayenne SUVs with VW Group engines.

Blume is hoping that Porsche’s suspended R&D head Wolfgang Hatz would soon be reinstated as this would be favorable to the company’s developmental efforts for its new lineup. Hatz, along with top engineers, was placed on leave by VW Group’ supervisory board last year in response to the emissions scandal.

If you liked the article, share on:

Comments

Recommended

Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 2017
Mercedes-Benz just made an announcement that the 2018 E Class Cabriolet has finally landed in the United States. If you had not known, the E Class will be positioned in...
by - November 22, 2017
After a somewhat successful fray into the automotive market in China, the resurrected German automobile brand Borgward is finally heading to Europe, bringing along with it the Borgward BX7 sports...
by - November 22, 2017
Automotive industry veteran Bob Lutz has once again spoken out against Tesla. Known as one of Tesla Motors’ greatest skeptics, Lutz had stated two years ago that the Silicon Valley...
by - November 22, 2017
Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries