Porsche to invest billions more in electrification

Porsche is investing around 10 billion euros in the hybridisation, electrification and digitalisation of its vehicles by 2024 and, according to their statements, is “consistently expanding” the product range in the field of electric mobility.

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The Stuttgart-based sports car manufacturer announced this at the presentation of its annual figures for 2019. Despite the uncertainties caused by the coronavirus, plus the high investments in the electrification of the product range, digitalisation, and the expansion and renewal of locations, the company wants to ensure that it continues to meet its high earnings expectations, said CFO Lutz Meschke in the announcement.

Porsche does not provide more detailed information in the communication which areas and plants will benefit from the investments into electromobility. As confirmed earlier, the next electric car to be launched on the market will be the first derivative of the Taycan, the Cross Turismo. The new generation of the Macan is to follow as the second battery-electric series – Porsche does not mention a year for the premiere of the electric SUV. The company expects that by the middle of this decade half of the entire product range will be sold as plug-in vehicles.

Overall, Porsche CEO Oliver Blume is satisfied with the launch of the first electric model. “We had already received around 30,000 serious purchase enquiries for the Taycan before our world premiere in September,” says Blume: “More than 15,000 customers have now signed their purchase contract.”

Also, electric mobility has proven to be a job motor, and around 2,000 new jobs have been created for the Taycan. A total of 35,429 employees now work for the sports car manufacturer – ten per cent more than a year ago.

Regarding the financial figures: In 2019 Porsche delivered 280,800 vehicles (+10%), achieved a turnover of 28.5 billion euros (+11%) and an operating profit of 4.4 billion euros (+3%). After special items (including €500 million due to the “diesel issue”), the operating profit amounted to €3.86 billion, resulting in a return on sales after special items of 13.5%.

Update 23.03.2020: In the sustainability report, Porsche revealed another detail about the Taycan Cross Turismo. According to this, Porsche intends to present the series version of the first derivative of the purely electric Taycan at the end of this year. Porsche had already presented the Taycan Cross Turismo as a concept at the Geneva Motor Show 2018.

porsche.de, motor1.com (Update), porsche.com (Sustainability report as PDF, Taycan info on page 88)