Volkswagen’s embattled luxury brand Porsche cut its full-year profitability target on Wednesday after the EU’s trade deal with US President Donald Trump and reported a €400m hit from tariffs in the first half.
The burden of tariffs on car imports to the US only added to Porsche’s woes, as it undergoes a costly restructuring while facing weakness in its key market China and a sluggish transition to electric cars.
“We continue to face significant challenges around the world. And this is not a storm that will pass,” Porsche CEO Oliver Blume said.
Taking into account the newly agreed tariff of 15% from August 1, the German carmaker expects group sales this year in the range of €37bn-€38bn euros, in line with its previous forecast, and a return on sales of between 5% and 7%, down from a previously expected 6.5%-8.5% range.
Countermeasures such as price adjustments were included in that outlook as Porsche sought to mitigate the damage, the company said.
Group figures released last week showed Porsche’s operating profit collapsing by 91% year on year in the second quarter, to €154m.
Reuters
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