Porsche, China and US tariffs sank profits in the first quarter

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Operating profit of Porsche fell 30 percent to 1.28 billion euros in the first quarter, reaching its weakest result since its IPO in September 2022. Weakness in the Chinese market was linked to difficulties in clearing cars through customs in the United States. The company Zuffenhausen (Stuttgart) had predicted that the first phase of the year could reach a low level, while working on the launch of four updated models: the second generation of Macan (the first and long-awaited electronic version), a complete new electronic Taycanthird generation of Panameranew 911 scheduled for early summer, which also has a high-performance hybrid drive.

Although the order book is full for this year, new cars such as the electric Macan and the 911 will weigh on production and return in the coming months, said Chief Financial Officer Lutz Meschke, who said that in 2025 there will be a “strong acceleration” of profits. .

Sales returns in the three months to March fell to 14.2%, below the automaker’s annual guidance of 15 to 17 percent and analysts’ expectations. In the medium term, the forecast is for the stability of profits and profits of around 17-19% next year. In the long term, however, Porsche aims for a return of more than 20%. The Group’s sports car brandVolkswagenmeanwhile, it maintained its full-year guidance, which called for group revenue of 42 billion euros.

Back in trouble in China, first-quarter deliveries in Porsche’s main market fell 24% to 16,340 vehicles. China accounts for more than a fifth of total sales. This week Meschke took part in the Beijing Auto Show (Auto China 2024), where the latest technological developments from local operators such as China’s electric car leader BYD or emerging Xiaomi were displayed, recording orders for new and A common electrical outlet. away, the SU7, whose design is similar to the Porsche Taycan. “It’s amazing what the local Chinese brands are doing in terms of power supply – commented Meschke -. The efforts of the Chinese brands are very big. We have to monitor the situation closely as European operators.”