STUTTGART – Porsche AG carries record car sales, revenue, and operations throughout 2017. The sports car company posted sales of 246,375 units, up 4% and revenue growth of 5% to 23.5 billion euros. Operating profit rose 7% to EUR 4.1 billion.
Porshce AG Executive Board Chairman Oliver Blume said the achievements were a testament to the success of the company’s strategy. “We will use the profit increase to develop future vehicle plans,” he said, citing newroom of porsche, Saturday (17/3/2018).
Blume said the company will invest more than 6 billion euros for vehicle electrification, focusing on plug-in hybrids and pure electric vehicles by 2022.
Nearly half of the capital will be used for investment of material assets, and more than 50% for development costs. In development costs, approximately EUR 500 million will be used for Mission E, and 1 billion euros for the electrification of existing models.
Vice Chairman of the Executive Board of Porsche AG Lutz Meschke said the company’s profit reached 50% in the last three years. With a profit growth of 17.6% last year, Porsche proved itself to be the most lucrative automotive company in the world.
“This is thanks to a periodic increase in productivity, cost efficiency, and the launch of superior products,” he said.
Meschke continues that digitalization, electrification, and connectivity are the biggest challenges the automotive world needs in large investments. Nevertheless, Porsche holds the target to at least maintain a 15% profit growth.
“We should and will look for opportunities from growth potential in addition to the actual vehicle business. In the medium term, we want digital service sales to grow double digits, “he explained.
As for this year Porsche AG seeks to maintain the stability of revenue and sales. The company believes there will be significant additional sales once Mission E, Porsche’s first pure electric vehicle is released into the market.