FRANKFURT (Dow Jones) – The sports car manufacturer Porsche is expanding its savings program in order to achieve further cost reductions and revenues in the billions. “In the next five years we are now planning a total of around ten billion euros to secure the result. Originally it was six billion euros. After 2025 it should be three billion euros a year,” said CEO Oliver Blume of the Automobilwoche.
Initially, an additional two billion euros per year were earmarked for the second half of the decade. “We are thus strengthening ourselves for a successful transformation under our own steam,” added Blume. This is necessary to maintain the strategic return: “15 percent in the transformation phase is worth as much as 20 percent in earlier times”. It must be in electrification and digitalization to be invested. In addition, there would be higher material costs for batteries, the parallel offer of drives or the qualification of employees.
The order intake in the past few months has been great, we have a stable financial basis.” Nevertheless, the challenges are great. “Because of Corona, many trading companies are currently closed again nationally and internationally,” said Blume. One observes the situation at the suppliers daily.
Blume indicated that, together with the Croatian electrical pioneer and partner Rimac, there could be a super sports car from Zuffenhausen in the second half of the decade. This will be an “automotive lighthouse”. Nothing has been decided at the moment.
The deal between Bugatti and Rimac, on the other hand, is relatively specific, in which Porsche is more than just an agent and could further increase its stake in Rimac. According to Blume, a decision in the VW Group should be made in the first half of the year.
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(END) Dow Jones Newswires
February 21, 2021 06:08 ET (11:08 GMT)