The German brand, Porsche, announced this Friday that they closed the past financial year 2020 with a profit of 4.2 billion euros, 220 million less than in the previous year. However, they registered a sales record, reaching 28.7 billion euros, about one hundred million euros more than in 2019.
The return on sales was 14.6 percent in 2020, despite the economic situation caused by the Covid-19 pandemic. With the aforementioned data, the German car automaker has become the most profitable within the Volkswagen Group.
In total, Porsche delivered more than 272,000 vehicles to customers around the world, which is just 3% less than the previous year.
Zero emissions by 2030
The German company has presented its strategy for 2030 in which they has set themselves the goal of being neutral in CO2 emissions throughout the value chain.
“All of the major sites like Zuffenhausen, Weissach and Leipzig have been CO2-neutral since 2021. We’ve earmarked more than a billion euros for decarbonization over the next 10 years,” Oliver Blume, Chairman of the Executive Board of Porsche AG.
In 2020, a third of all Porsche vehicles delivered in Europe were fully or partially electric, while worldwide it was 17%. By 2025, half of all new Porsche vehicles sold will have an electric motor; by 2030, more than 80% of new vehicles will be electric.
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“More than 20,000 units were delivered of the Taycan, the first all-electric Porsche sports car. This makes it the most successful electric sports car in its class. More than 50 international awards attest to this. Among other things, the Taycan was named the ‘world’s most innovative car’. Porsche stands for a robust core business, sustainable action, social responsibility and innovative technology.”
Regional deliveries: demand increases in Asia
By region, China remains as the largest market: Porsche delivered 88,968 vehicles to Chinese customers in 2020, an increase of 3% compared to 2019.
Asia and the Pacific, the Middle East and Africa also showed positive growth overall, with 121,641 vehicles delivered in 2020, 4% more compared to the same period last year.
In Europe, Porsche delivered a total of 80,892 vehicles, while in the United States this figure was 69,629.
Overcoming the pandemic situation
“The financial year 2020 was successful for Porsche – despite challenging circumstances,” says Oliver Blume.
“There are four reasons for this: our attractive product range, convincing electric models, our brand’s innovative strength and the determination with which we approached our crisis management.”
Regarding the “Profitability Program 2025”, Porsche continues to make clear that it seeks to refine its objective.
“Our new goal is to support our result cumulatively by 10 billion euros by 2025, and by 3 billion euros per year after that,” says Lutz Meschke, Deputy Chairman of the Executive Board and Member of the Executive Board for Finance and IT of Porsche AG.
For Meschke, the most important thing about our profitability program is that it is not only a savings plan, but also an innovation program that intelligently optimizes all processes and develops new business ideas.
Written by | Gabriel Sayago