Porsche is fighting the crisis: investments and return on sales in focus!

Porsche is fighting the crisis: investments and return on sales in focus!

Porsche, the well-known sports car manufacturer from Stuttgart, is tackling the challenge of the current crisis situation with a fundamental investment program. CEO Oliver Blume is focusing on the development of new models with combustion engines and plug-in hybrid drives, while at the same time the range of special and exclusive equipment is to be expanded. These steps are necessary because the company has already come under significant pressure crown reported. Despite the financial burden caused by these measures, management promises a stable dividend, even if operating margins could fall sharply this year.

The operating margin, which was already low, could fall to an alarming 10 to 12 percent, a drastic decline. Andreas Asumendi, analyst at JPMorgan, assesses the measures as necessary for a strategic realignment that will help Porsche generate growth again in the coming years. However, the financial challenges make it necessary to adjust profit expectations, as Porsche was only able to achieve disappointing figures last year. At the same time, the company needs to invest in battery technology to keep up with industry dynamics, such as Investment Week communicates. The car manufacturer is therefore faced with the challenge of achieving its ambitious target of a return on sales of more than 20 percent.

Given these challenges, Porsche shares have seen a dramatic decline since the record high in May 2023. The price has now halved and is well below the originally set issue price. There are also personnel changes in the management team, with the resignation of CFO Lutz Meschke and Sales Director Detlev von Platen, without any official reasons being given. Despite this turbulence, Porsche's stated goal remains to keep the dividend stable, while the full annual report for the previous year is scheduled to be presented on March 12, 2025.