Porsche Is Counting on Macan for Sales Boost in 2014
Volkswagen Groups says that not only have they seen an increase in deliveries, revenue and operating profit in the first three months of 2014, they expect to continue to see positive developments in profit as the year continues.
Deliveries were up 4.5% at 38,663; revenue increased by one-fifth, registering 3.93 billion euro; and operating profit increased, as well, during the first quarter of the fiscal year, growing to 698 million euro—an increase of 22%. Additionally, employment by Porsche rose, exceeding 20,000 employees in February. Just three years ago, the number of employees at Porsche was around 13,000.
On the other hand, Lutz Meschke, Member of the Executive Board Finance and IT of Porsche AG, underscored the fact that Porsche will have to bear substantially rising labor costs and write-offs due to the launch of the new Macan model range. “In addition to that, there are high expenditures for meeting the CO2 requirements and substantial investments in the build-out and modernization of the Zuffenhausen, Leipzig and Weissach locations,” Meschke continued. Nevertheless, the CFO is optimistic about the course of the 2014 fiscal year: “Assuming that sales in Europe will continue to stabilize despite the unresolved structural problems, our aim is to achieve at a minimum a profit comparable to the previous year.”
Matthias Muller, Chairman of the Executive Board of Porsche AG, explained the requirement of the substantial investments and development expenditures, amounting in each case to significantly more than one billion euro in the ongoing fiscal year: