Recession bites at car company Porsche

Jun 20 2009 by Iain Laing, The Journal

CAR company Porsche has seen its nine-month sales fall by more than a quarter as the recession continues to hit the sector.

Worldwide sales at the German company fell 28% to 53,635 vehicles between August 2008 and the end of April compared with a year earlier with revenues, not including those from its stake in Volkswagen, down 15% to £3.9bn.

Porsche, which has increased its stake in VW to 51%, is continuing talks with the Gulf state of Qatar over a possible investment by the country’s state-run sovereign wealth fund in the firm.

Reports have suggested that the Qatar government wishes to buy a 25% stake in Porsche.

The fall in sales at Porsche was most pronounced for its Boxster and Cayman models, which fell a combined 47%. Sales of its core 911 model slipped by 18%, while those of its Cayenne four-wheel drive vehicle were down 25%.

Porsche said it had seen demand fall around the world, but was most extensive in the US and Canada. “In the first nine months of the ongoing fiscal year, the Porsche subgroup could not avoid the downward trend that has overtaken the worldwide automobile industry,” said Porsche.