Porsche CEO Says Carmaker will Reduce Initial Production and Investment Targets for 2013

Its global sales may be better than ever, having increased by 15 percent in the first half of 2012, yet Porsche is already trimming its initial production and investment projection for next year in anticipation of slowing demand. On the sidelines of the ceremony for the beginning of the Boxster production at VW’s Osnabruck plant, Porsche CEO Matthias Mueller said that 2013 sales could very well be 5-10 percent below initial expectations, despite the introduction of the Macan compact SUV, which the company expects to be a best-seller, and the second generation of the Cayman sports coupe. As a result, the company will adjust its production and spending accordingly in order to maintain its high operating profits which, during the first six months of the year, rose about 20 percent to €1.26 billion (US$1.55 billion). Mueller, however, believes that slowing demand in China as well as the dwindling European market will necessitate a revision of original estimates. “We will possibly delay the one or the other project”, he told Reuters but declined to specify which vehicles he was referring to. Mueller added that total sales should be equal to those of 2012. Thanks to an increase of deliveries in the US and China, its two biggest markets, and strong sales of the new 911 and the Cayenne the brand’s first-half revenue in 2012 increased by 30 percent to €6.76 billion (US$8.83 billion). By Andrew Tsaousis