2024-04-27 14:50:28
Porsche’s profitability hit a sharp halt, with the Volkswagen Group brand posting its worst performance since going public in September 2022. Upgrades to various models, but also weak demand in one of its biggest markets, China, acted as a drag.
With an eye on Macan and Cayenne
The German luxury car maker’s operating profit plunged 30% to $1.28 billion in the first quarter of the year, Volkswagen said. In this particular quarter, four models went through an “upgrade” process, which weighed on profits. However, it is these models that are expected to boost second-quarter earnings.
“After the upgrade of various models, including the electric Macan and Cayenne, we will pick up speed again,” assured CFO Lutz Meske.
Weak performance in China
However, the performance in the world’s second largest economy, where it faces fierce competition from local companies, is also problematic. In China, Porsche sales fell 24% to 16,340 vehicles. Thus, the Chinese market covered only 1/5 of the company’s total sales during this period.