Porsche to cut costs and investment in 2013 to remain highly profitable image

VW Group’s sports car brand Porsche will reduce investment spending and cut costs next year in order to maintain its high profitability in 2013.

The brand had lower than expected sales so far this year and wants to offset lower sales by cutting spending and costs next year. “We will possibly delay the one or the other project,” said Porsche brand chief Matthias Mueller at the production launch of the new Boxster. Mueller added that car sales next year may be 5 to 10 percent lower than Porsche’s internal target. However, 2013 sales should be at least equal to those from 2012, according to Mueller, who added that Porsche will moderately reduce its production in 2013.

Porsche SE sold its 50.9 percent stake in Porsche sports cars to Volkswagen Group in August, making the Stuttgart-based brand a wholly-owned subsidiary of Europe’s largest carmaker. In the first half of 2012, Porsche’s operating profit rose by about 20 percent to 1.26 billion euros ($1.55 billion) thanks to strong sales of models such as the 911 sports car and the Cayenne SUV. Porsche’s worldwide sales rose 15 percent in the first eight months of this year to 92,474 vehicles.

Last year, Porsche sold a record 118,867 vehicles worldwide, up 22 percent compared with 2010. The carmaker’s biggest markets are the United States and China.