Porsche To Spend 6 Billion Euros On EVs By 2022

Porsche AG announced that it recorded deliveries of 2,46,375 vehicles in the 2017 financial year and the company showed an improvement in revenue of 5 per cent with 23.5 billion euros. Its operating profit rose by 7 per cent to 4.1 billion euro. As a result, its operating return on sales increased from 17.4 per cent in the previous year to 17.6 per cent. This makes Porsche one of the most profitable automobile manufacturers in the world. Given this success, the German car maker has announced that it'll be doubling its expenditure in the field of electromobility by 2022.

Oliver Blume, Chairman of the Executive Board of Porsche AG said, "This successful financial statement confirms our strategy. We are using our high earnings level to support an unprecedented future development plan,"

The company will make sizeable investments in its core sports car business, but has made a commitment to invest over 6 billion euro in electromobility by 2022. The money will be spent on derivatives of the Mission E, hybridisation and electrification of the current model range, as well as on developing a charging infrastructure and smart mobility.

"We have succeeded in boosting our operating result by over 50 per cent within the last three years," emphasised Lutz Meschke, Deputy Chairman of the Executive Board and Member of the Executive Board for Finance and IT. "With a profit margin of 17.6 per cent, Porsche continues to be among the most profitable automobile manufacturers in the world. This is down to continuous improvements in productivity, our stringent cost management strategy as well as our outstanding product range," continued Meschkomobile. Digitisation, electrification and connectivity are major challenges that require substantial investment. "Nevertheless, we are sticking to our strategic return target of at least 15 per cent. We must and we will generate growth potential alongside the actual vehicle business. In the medium term, we want to generate a double-digit percentage of sales through digital services."

Porsche expects the next boost in sales to come when the Mission E, the first purely electric vehicle, hits the market. Plans for derivatives of the Mission E are also under way: Just last week, Porsche presented a production-ready concept study of the Mission E Cross Turismo at the Geneva Motor Show.

For the next ten years, Porsche intends to continue with a three-pronged approach, incorporating optimised combustion engines, plug-in hybrid models and purely electric sports cars - all in typical Porsche style of course.