Porsche CEO Confirms Plan for $6.8 Billion Profit Boost by 2025

Porsche CEO
Oliver Blume, chief executive officer of Porsche AG, attends the launch event for the new Cayenne sport utility vehicle (SUV) in Stuttgart, Germany, on Tuesday, Aug. 29, 2017. The Cayenne's success following the model's introduction in 2002 led Porsche's push to expand beyond pure sportscars and opened the door to boost the nameplate's presence in China, which has since emerged as the Volkswagen AG units biggest single market ahead of the U.S. Photographer: Krisztian Bocsi/Bloomberg

Porsche AG is planning to boost its profits by 6 billion euros ($6.8 billion) by 2025 as it reduces costs and focuses on digital development, Chief Executive Officer Oliver Blume told German magazine Automobilwoche in an interview.

“On the cost side, it’s about reducing complexity in drive variants, more common parts between the different series, less physical prototypes and more digital development,” he said. By 2025, “we want to target an additional annual profit contribution of two billion euros.”

Blume said Porsche’s 32,000 employees would remain unaffected by the plans, and that the company plans to hire 1,500 more staff for its electric-powered Taycan model.

Last month, Bloomberg reported the profit goal, saying the carmaker aims to increase earnings before interest and taxes by about 750 million euros annually through 2025 by increasing efficiencies, cutting costs and boosting contributions from new business such as digital offerings.

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