Latest news with #Porsche
Business Times
17 minutes ago
- Automotive
- Business Times
Porsche cuts outlook as US tariffs, model revamp eat into profit
[Stuttgart] Porsche cut its outlook for the third time this year, with US President Donald Trump's 15 per cent tariffs on European autos piling further pressure on the maker of 911 sports cars. The manufacturer's return on sales for 2025 could slide as low as 5 per cent, having previously targeted at least 6.5 per cent, the Volkswagen-controlled brand said Wednesday (Jul 30). The lower forecast includes the hit from US tariffs the European Union agreed and roughly 1.3 billion euro (S$1.93 billion) of costs related to the brand's strategic reset, including adding more combustion-engine and plug-in hybrid models, Porsche said. 'We continue to face significant challenges around the world,' said chief executive officer Oliver Blume. 'And this is not a storm that will pass.' Porsche is under pressure due to tepid demand for its electric models and the collapse of sales in China, with US tariffs now adding to the burden. The sports-car maker is trying to get back on its feet by replacing several top managers, slashing costs further – including through job cuts – and revamping its lineup. The US and the EU agreed on Sunday to lower the tariff rate on cars imported from the bloc to 15 per cent. That's significantly below the earlier 27.5 per cent rate but far higher than the 2.5 per cent levy before Trump's trade offensive. The US recently overtook China to become Porsche's single biggest market, but the company has no local factory and imports all of the cars it sells there from Europe. One of several options being considered as part of parent Volkswagen's US production expansion is final assembly of Porsche models there, Bloomberg previously reported. Volkswagen is seeking a further reprieve from the duties based on current and future investments there, with Blume, who runs both companies, saying US negotiators reacted positively to a proposal to reduce the tariff burden by US$1 for every US$1 invested in the country. Volkswagen last week cut its full-year guidance due to the duties. Porsche's operating profit fell to 250 million euros in the second quarter, its lowest quarterly earnings since at least its initial public offering in 2022. BLOOMBERG
The Guardian
18 minutes ago
- Automotive
- The Guardian
Mercedes-Benz and Porsche flag €800m in combined costs from Trump tariffs
Update: Date: 2025-07-30T07:01:00.000Z Title: Mercedes-Benz, Porsche and Aston Martin count steep cost of US tariffs Content: Good morning, and welcome to our live coverage of business, economics and financial markets. Car companies around the world are laying out the cost of Donald Trump's trade war, with Mercedes-Benz saying tariffs will cost it €362m (£313m) while German sportscar maker Porsche saying it would cost €400m. British sportscar manufacturer Aston Martin Lagonda also said that it cut production and limited exports to the US to try to limit the financial impact. Mercedes-Benz said the tariffs were 'causing great uncertainty', and had hit sales, which dropped 9% year-on-year to 453,700 units in the second quarter. Reuters reported that Mercedes said tariffs would cut profits by about 1.5 percentage points, equivalent to a tariff effect of €362m on the division's adjusted operating profit. Ola Källenius, Mercedes-Benz's chief executive, said: We achieved robust financial results in the second quarter given the dynamic business environment. The best response is to stay on course to deliver desirable and intelligent products, while keeping a tight grip on costs. Porsche said the introduction of increased US import tariffs resulted in additional costs of €400m in the first half of the year as the company protected customers from price increases. The effect of Trump's trade war was also evident in the UK, where Aston Martin was forced to cut back production and run down stocks at US dealers in order to avoid the tariffs of 27.5%. Those have now been reduced to 10% under the UK's trade deal with the US – although only for the first 100,000 exports on a first-come, first-served basis. Adrian Hallmark, Aston Martin's chief executive, said: The evolving and disruptive US tariff situation was unhelpful to our operations in the second quarter. In response, we adjusted production and limited imports through April and May while awaiting confirmation of a trade agreement between the UK and the US, leveraging existing inventory held by our US dealers in that period. We resumed shipments to the US in June in anticipation of a finalised agreement which came into effect on 30 June 2025. We continue to actively engage the UK government to urge them to improve the quota mechanism to ensure fair access for the whole UK car industry to the 10% rate on an ongoing basis. 9am BST: Germany GDP growth rate (second quarter; previous: 0.4%; consensus: -0.1%) 9am BST: Italy GDP growth rate (second quarter; prev.: 0.3%; consensus: 0.2%) 10am BST: Eurozone GDP growth rate (second quarter; prev.: 0.6%; consensus: 0%) 10am BST: Eurozone economic sentiment index (July; prev.: 94 points; consensus: 94.5) 1:30pm BST: US GDP growth rate (second quarter annualised; prev.: -0.5%; consensus: 2.4%)
TimesLIVE
18 minutes ago
- Automotive
- TimesLIVE
Porsche trims outlook as tariffs add to ‘storm' of challenges
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 (R8.23bn) hit from tariffs in the first half. The burden of tariffs on car imports to the US 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. 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 (R764.30bn) to €38bbn (R784.95bn), in line with its previous forecast, and a return on sales of between 5% and 7%, down from a previously expected 6.5% to 8.5% range. Countermeasures such as price adjustments are included in the outlook as Porsche seeks 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 (R3.18bn).
Reuters
an hour ago
- Automotive
- Reuters
Porsche trims outlook as tariffs add to 'storm' of challenges
BERLIN, July 30 (Reuters) - Volkswagen's embattled luxury brand Porsche (P911_p.DE), opens new tab cut its full-year profitability target on Wednesday after the EU's trade deal with U.S. President Donald Trump and reported a 400-million-euro ($462 million) hit from tariffs in the first half. The burden of tariffs on car imports to the United States 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 37 to 38 billion 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 are included in that outlook as Porsche seeks 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 154 million euros. ($1 = 0.8655 euros)
TimesLIVE
an hour ago
- Automotive
- TimesLIVE
From farm to fame, Nick Tandy recognised for 24 Hours grand slam
The answer came in 2018 when he won the Nürburgring 24 Hours, again with Porsche. In 2020 he conquered the Spa 24 Hours with Bamber and Belgian Laurens Vanthoor. That left Daytona and Tandy had won the US race previously in the GT class. "Somebody said to me 'you do realise nobody has ever won them all, overall, and you've won three and you've got a class win at Daytona'. I thought 'Oof! Now there's a challenge'," he recalled. The Briton succeeded last January with Brazilian Felipe Nasr and Vanthoor. Tandy also won the 2015 Petit Le Mans at Road Atlanta, Georgia, and 12 Hours of Sebring in Florida last March, becoming the first driver to win endurance racing's "Big Six". In a world where the car is more often the star, Tandy said he had been taken aback by the amount of interest suddenly penetrating his "little bubble". "I drive my little car in my little races around and around and kind of finish where we started up," he said. "I haven't been on water and driven a boat faster than anybody's ever done. I haven't won a world championship in a plane. I haven't circumnavigated the globe. "It makes you realise that what you've done is probably bigger than I ever thought." Comparisons have been made to double Formula One champion and Indianapolis 500 winner Jim Clark, an all-time great who came from a Scottish farming family and died in 1968. Tandy said being mentioned in the same breath as Clark was unbelievable but the background similarity was not a surprise. "There's many more other good drivers who come from farming," he said. "There's something about having the land available and growing up and driving machines, working on machines and understanding mechanics. "I'm a professional racing driver, but when I come home, I can switch off and go back to family life and working in my workshop, helping my dad on the farm. Being a normal person."
