Porsche trims outlook as tariffs add to ‘storm’ of challenges

Rachel More

Berlin (Reuters) -Volkswagen’s safe luxury brand Porsche, after the EU’s trade agreement with us, the full year’s profitability target on Wednesday President Donald Trump and 400 million-Euro (462 million dollars) reported a shot tariffs In the first half.

The burden of tariffs on car imports to the United States only contributed to Porsche’s troubles, because he underwent an expensive restructuring while encountering weakness and stagnant transition to electric cars in his basic market.

“We continue to face significant challenges in the world. And this is not a storm.” He said.

Considering the 15% tariff on the new as of August 1, the German car manufacturer is waiting for group sales in the range of 37 to 38 billion euros in accordance with its previous estimates and 5% to 7% of the previously expected expected 6.5-8.5%.

The company said counter measures such as price adjustments because Porsche is trying to reduce the damage.

The group figures released last week showed that Porsche’s operating profit collapsed by 91% annually in the second quarter and increased to 154 million euros.

In February, Porsche announced 1,900 additional business deductions in the next four years, but he said he could not announce the compulsory surplus within a valid location protection agreement until 2030.

On Wednesday, Porsche, the administration “the company is progressing decisively with comprehensive measures to re -scale and re -calibrate” and with its negotiations with its representatives working in the second half of the year.

In the first half, Porsche reserves special expenses for the reorganization of approximately 500 million euros for the company’s approximately 200 million euros and battery events.

($ 1 = 0.8655 euro)

(Reporting by Rachel More, arrangement by Kirti Knolle)