Very rich people are coming – a sports car manufacturer wants to take advantage of it. The same applies to pure electric cars: Porsche intends to significantly increase its profitability in the coming years.
Sports car maker Porsche has big plans for the coming years ahead of the planned IPO. The management around boss Oliver Blume wants to benefit primarily from the growing number of wealthy people, but also to earn money by switching to fully electric cars. To this end, the company also intends in some areas to separate the road from Volkswagen, the Wolfsburg-based parent company: the software for its own electric cars is to be developed independently due to delays at VW’s software subsidiary Cariad.
At the Monday investor event, Porsche provided a deeper insight into its own finances and plans for the coming years – primarily to convince the car manufacturer’s potential shareholders. Blume’s goal, as well as VW CEO Herbert Diess, is to achieve the highest possible valuation for the company if the stock is traded on the stock exchange in the fourth quarter as planned. Because VW wants to make a lot of money by selling shares in order to be able to make the necessary investments in its own electrical plans.
Porsche CFO Lutz Meschke promised long-term operating profits before interest and taxes (EBIT) of 20 percent of sales, last year Porsche hit 16 percent. Such margins can only be achieved in the high end segment with appropriate selling prices. The company from Stuttgart-Zuffenhausen is well positioned with a range of € 100,000 and more per car.
“Mass was never conducted”
Blume wants to offer luxury to customers but not become a niche supplier. However, balancing between higher sales and exclusivity will not be a certain success. “The Mass has never been and will never be our driving force,” promised the manager. The manufacturer wants to noticeably increase sales in the medium term, on average by seven to eight percent per year in the coming years. Porsche aims to achieve a margin of 17 to 19 percent. As announced, the management feels good with the current market share.
The basis is a planned increase of 18 percent to 38 to 39 billion euros in revenues this year. 16 percent each in the previous year, the operating margin should be between 17 and 18 percent. As a result, Porsche can achieve an operating profit of around seven billion euros.
The increase in return should also come from new electric cars. Meschke sees Porsche’s even greater price power for electric model buyers than for the group’s internal combustion engines. After Macan and Cayenne, Porsche is planning a third city all-terrain vehicle (SUV) to be built in Leipzig that will be fully electric and, according to Blume, “very sporty”. Eight out of ten Porsches sold will be fully electric by the end of the decade.
Independence through IPO
After many years under the umbrella of the VW group, Porsche was able to regain its independence through an IPO. Half of the share capital is to be divided into ordinary shares with voting rights and non-voting preference shares. VW wants to list up to a quarter of its preferred shares.
The fact that the car maker Porsche is currently moving away from the corporate corset is also reflected in the already truncated partnership with Cariad, VW’s software subsidiary. Their software platform, called “2.0”, for general use across the group, arrives far too late for Porsche executives in 2026 – as the new all-electric Macan is due to be launched in 2024. In this area, Porsche has abandoned the VW-related software package and is initially relying on the nearly completed “1.2” software platform, which is specially adapted to Porsche.
Meschke’s chief financial officer said Porsche has arranged a meeting with prominent technology companies in the US and China about autonomous driving software. He did not want to name specific names yet. In the coming weeks, there should be information about the planned further industrial cooperation with the VW Group, Blume said. (dpa)