Posted Sep 21st 2012 9:44AM
Automotive News reports Porsche is set to scale back the company's investment spending. The sports car manufacturer expects to see sales decline between five and 10 per cent next year compared to earlier estimates, and the move is aimed to help the company keep its profitability up through 2013. According to Matthias Muller, Porsche brand chief, the cut in spending may delay a project or two, though there's no indication as to which exercises are going to get the back-burner treatment.
In addition, Porsche will also cut back production slightly in 2013 to more accurately reflect sales estimates. Last year saw the manufacturer sell 118,867 vehicles around the world, setting a record and marking a 22 per cent jump over 2010.
Vehicle sales in Europe have slackened in 2012 as the continent continues to wrestle with economic woes. Even so, China and the United States have helped bolster the Porsche bottom line, and the first half of the year has seen the company's operating profit increase to around $1.55 billion USD. That number marks an increase of around 20 per cent, thanks largely to the popularity of the 911 and Cayenne.