Porsche's earnings heavily rely on the sale and transportation of fuel, reportedly shifting billions of pounds worth of merchandise for financial gains.
In a significant move, Porsche has announced a sweeping restructuring of its operations, aimed at adapting to industry changes and customer needs. The restructuring, confirmed by Porsche's CEO, Oliver Blume, will involve the development of new internal combustion engine models and successors for existing vehicles like the Panamera and Cayenne.
The decision comes as the parent company VW now expects an operating profit margin of two to three percent for Porsche, a decrease from the previously anticipated five to seven percent. This shift is due to additional billion-euro costs incurred from extending the production of internal combustion engine models.
Despite this, Porsche remains committed to the electric vehicle market. The new Porsche electric SUV will initially be available as an internal combustion engine and plug-in hybrid. However, the market launch of certain fully electric vehicles by Porsche will take place at a later date.
The total costs for Porsche's transformation this year will amount to 3.1 billion euros. Notably, Porsche has abandoned plans for its own battery production, opting instead to focus on its core competencies.
Porsche SE, the holding company of the Porsche and Piëch families, has also adjusted its forecast due to these changes. The shift towards electric vehicles at Porsche is not happening at the pace initially anticipated, with some electric projects being scaled back in favor of internal combustion and hybrid models.
The restructuring is heavily impacting Porsche's financial results this year, causing the operating margin for the full year to be expected at only slightly positive, up to two percent. Porsche has been investing in new internal combustion engines since the beginning of the year.
Meanwhile, there is new VfB Stuttgart news available, as the team aims for a breakthrough against a promoted team in the Oberliga. Additionally, the S-Bahn lines in Stuttgart have been halted due to a signal disruption.
Other than these updates, Porsche continues its work towards a balanced and flexible portfolio of vehicles, with plans to introduce fully electric models like the electric Cayenne and a sports car in the 718-segment by 2022. However, these models will initially be offered as internal combustion, hybrid, and plug-in hybrid variants, rather than purely electric.
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