Porsche feels the global economic crisis

Porsche Automobil Holding SE, announced today that due to the global economic ciriss, the company’s sales have dropped by 14.3 per cent.

According to the President and Chief Executive Officer of Porsche Automobil Holding SE, Dr. Wendelin Wiedeking, the company “was not able to escape the general downward trend in the global automotive industry in the first six months of the current year of business 2008/09 (1 August 2008 - 31 January 2009) and will therefore show a decrease in revenues according to provisional figures of 14.3 per cent to approximately Euro three billion.

Outlook

The future development of the world economy holds many more risks than in previous years. In the US, the government and the Federal Reserve attempted to stabilize the economy by issuing tax rebates and lowering interest rates. The financial crisis expanded dramatically despite these efforts. The collapse of a major investment bank and the 700 billion dollar rescue package from the US government revealed the precarious state of the world economy at the end of 2008. Even if a long-term recession can be avoided in the US, 2009 will at best see the gradual recovery of the economy.

Apart from the US economy, the high price of oil proved a crucial factor in the development of the global economy. A further price shock could lead to new reductions in growth. After the record of 147 dollars for a barrel of crude oil in mid-2008, prices have fortunately begun to come back down. However, this also reflects the weakness of the world economy and the ensuing drop in demand.

Although eurozone countries were able to profit in the fall of 2008 from exports to the emerging economies of China, Russia and India, they are unable to escape the pending recession that is spreading from the US. This also applies to Germany. The rescue package totaling hundreds of billions of euros introduced by the EU in October 2008 with the aim of mitigating the financial crisis will do little to change this situation.

The German economy has a strong position in foreign markets thanks to its range of products. It offers premium consumer goods and capital goods that are in demand in the rich oil-producing countries as well as in China. Exports remain the most important engine of the economy. If the oil price and rate of inflation develop favorably private consumer spending could recover in 2009, while unemployment is expected to remain low. However, Germany will not be able to avoid an interruption in growth.

New 911 Carrera well received by customers With regard to the current 2008/09 fiscal year, Porsche Automobil Holding SE sees high demand for the new 911 Carrera models with direct fuel injection and Porsche Doppelkupplungsgetriebe (PDK). The basic variant of the 911 Carrera was launched on the important US market on 20 September 2008. The 911 Targa models, the latest additions to the 911 family with reduced-emission drive systems, are to be launched onto worldwide markets on 25 October 2008. In spring, the product portfolio is to be made even more appealing by the reissue of the Boxster series mid-engined sports cars. At the same time, it is difficult to make reliable statements on the development of the entire current fiscal year in the current economic climate.

Porsche anticipates the next growth spurt in the subsequent 2009/10 fiscal year, with the market launch of the Panamera. As well as enabling Porsche to benefit from the growth in demand for luxury vehicles in the large emerging markets of China, the Middle East and Russia, the four-door, four-seater Gran Turismo will also make waves in the traditional sales regions of Europe, North America and Japan.