Proud of its Made in Germany production, the German sports car brand will not open a factory in China Porsche which two days ago released preliminary 2020 data with an after-tax profit of 2.6 billion euros, down 41% compared to 4.4 billion the previous year, influenced by the results, in turn, of the group Volkswagen (Porsche, which represents about 40% of the VW Group’s annual profits,), in which it holds a stake of almost 31. But the results of the Stuttgart carmaker, despite the pandemic, are instead positive in China, its largest and most profitable market, which accounts for approx a third of Porsche sales. Just 10 years ago, Porsche was selling less than 100,000 units globally – said Arndt Ellinghorst, Bernstein analyst at Financial Times -. It now sells nearly 90,000 units in China alone.
Despite the difficulties in shipping the cars from Germany to China in an ever growing market and a question of quality still produce from Europe for China -, he told al Financial Times the managing director Oliver Blume -. There is no point in moving production today. Other German premium brands are not of the same opinion, including Audi, BMW and Mercedes, which are producing more and more cars for the Chinese market locally, often through joint ventures. Too high production costs in Germany for example for Daimler CEO Ola Kallenius who last year declared that he will invest in China. But for Bloom, dealers and customers, the higher costs for the Made in Germany brand are worth absorbing. Land sales of the “premium” automotive market in the Asian country they have grown beyond expectations but those of Porsche which registered a + 3% have not been able to keep up with others such as Audi (+ 5.4%), BMW (+ 7.4%) and Mercedes ( + 11.7%) precisely because the production comes from Europe, explained Blume. Porsche for being able to keep prices stable compared to competitors with factories in China that have had to push sales by discounting prices.