Berlin (Business Emerge), July 25: Porsche is intensifying its efforts to restore production levels and shift its spending focus toward a more adaptable product lineup in response to ongoing supply chain disruptions, sluggish electric vehicle (EV) demand, and a decline in sales in China. The luxury car manufacturer has been grappling with these challenges in recent months.
In light of its latest financial results, which analysts described as solid and in line with forecasts, there remains some concern among investors following news of a significant reduction in expected production volumes for the second quarter. This has led to increased skepticism about the company’s operational capabilities.
Tim Rokossa of Deutsche Bank highlighted the need for exemplary execution in the premium automotive sector, noting that investor confidence has been shaken. On an analyst call, he emphasized that doubts about operational effectiveness are growing.
Despite a slight 0.8% increase in Porsche’s stock during morning trading, the company faced losses the previous day when it announced a potential reduction of over 10,000 cars in production for the latter half of the year due to an aluminium shortage.
Porsche’s executives are working diligently to address these concerns by enhancing dual sourcing strategies and improving visibility into issues with indirect suppliers. CEO Oliver Blume explained that the company is experiencing a more severe impact from the aluminium shortage compared to competitors, primarily due to its high volume of pre-ordered vehicles, low production numbers, and precise vehicle specifications.
Chief Financial Officer Lutz Meschke noted that the sales decline could not be quickly mitigated, necessitating a downward adjustment in Porsche’s profit margin forecasts.