Posted By Wanda Rich
Posted on November 13, 2024
(Reuters) – Porsche SE’s earnings after tax fell a third, to 2.5 billion euros ($2.65 billion), in the first nine months of 2024, it said on Wednesday, weighed by the holding’s investments in carmakers Porsche AG and Volkswagen.
European carmakers are facing multiple hurdles, including high production costs, weak demand, the shift to electric vehicles and fierce Chinese competition.
Carmakers BMW, Mercedes-Benz and Stellantis have all issued profit warnings this year, and Volkswagen has proposed a 10% pay cut for employees and could close plants in Germany to save costs.
Porsche SE, which also holds shares in German bus service company Flix SE and Swiss car charger maker ABB E-mobility, said it supported planned cost-cutting at Volkswagen and expected the carmaker to meet its targets.
Porsche SE holds the majority of ordinary shares in Volkswagen and 25% plus one share of the ordinary shares in Porsche AG, the firm said.
All of its voting shares are held indirectly by members of the Porsche and Piech families.
($1 = 0.9427 euros)
(Reporting by Louis van Boxel-Woolf, Editing by Miranda Murray)
