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Porsche AG closed the year with record sales thanks to China

March 23, 2021


Abstract : More than one third of the cars of the Stuttgart-based Group were sold in China in 2020, which means around 89,000 units, up 3% compared to 2019.

MILAN, March 19 (Class Editori) -- With around 89,000 Porsches delivered in China in 2020 — up 3% compared to the former year — out of the overall 272,000 units sold worldwide, the Stuttgart-based company recorded positive results during the year of the outbreak of the COVID-19 pandemic, which led major worldwide car manufactures to losses ranging between 10% and 20% or more.

"In China, clients are fifteen years younger on average and much more sensitive to technology: they want connected cars. China is setting the market trends," Lutz Meschke, 54 years old, who in last November became Chairman of Porsche AG, explained.

Growth has been globally positive in the Asia-Pacific region, in the Middle East and in Africa as well, with 121,641 cars delivered in 2020 (+4%), while sold cars amounted to 80,892 (-9%) in the EU and to 69,629 in the US.

In order to face the climate change issue, Porsche embraced an ambitious challenge which includes a 1-billion worth investment over the next ten years. "Sustainability is an important aspect of our 2030 strategy in a holistic sense, from an economic, social and ecological point of view," Oliver Blume, CEO of Porsche AG, pointed out. "We launched a global decarbonization program with a specific goal: Porsche wants to reach carbonic neutrality in all its value chain by 2030".

All Porsche's main plants, including those based in Zuffenhausen, Weissach and Leipzig, reached the climatic neutrality in 2021, and the company launched the first CO2-neutral car throughout its use phase, the Taycan Cross Turismo. In 2021, the Group will submit its first financial statements with ESG criteria.

To provide its customers an electric and connected mobility, Porsche created Porsche Digital, that will develop the brand's software, and Porsche Ventures, which deals with partnerships with Hi-Tech startups and aims to reach a total of 200 agreements by 2022: "Digitalization and connectivity will make a difference since software is and will be increasingly important. We expect revenues from digital services to reach double digits until 2025," Meschke said, also mentioning the agreement with Croatian electric hypercar manufacturer Rimac, in which Porsche recently rose from 15% to 24% with a 70-million worth investment.

Porsche ended 2020 with record revenues of 28.7 billion euros, up 100 million from the previous year. Operating income amounted to 4.2 billion euros, down from 4.4 billion euros in 2019 (3.9 billion euros net of extraordinary items), corresponding to a 14.6% operating margin. Deliveries totaled 272,163, including more than 20,000 Taycans, down 3% from 2019's record. Profit before tax reached 4.4 billion euros, up from 2019. In Europe, one third of vehicles delivered were electric or electrified, compared to 17% in the rest of the world.

"Last fiscal year was a success for Porsche since we sell exciting products and have a great team that determinedly coped with difficulties. The crisis made us stronger, and we are ready to face change," Blume stressed.

By 2025, 50% of all new cars sold by Porsche will have an electric motor and by 2030 more than 80% of them will be electric, thus converting Porsche into the first car group to achieve zero emissions, also as concerns its suppliers. However, the development of heat engines will remain a priority: "We will continue to develop heat and hybrid engines. We are working on an e-fuel to lower emissions with a 20-million worth investment in the industrialization process," Blume said.

"We have not skimped on issues that affect our future. We are proceeding at a fast pace with transformation, digitalization and electrification process," the Chairman recalled. The workforce of about 36,000 employees is also confirmed, and their jobs will be guaranteed, thanks to an agreement, until 2030, while for 2020 Porsche has decided to distribute a 7,850-euro worth bonus. (All rights reserved)

(Source:Class Editori)

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Keyword: Porshe AG

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