Turbulence at Porsche Hits Parent Company's Profits

The crisis facing luxury car manufacturer Porsche has directly impacted the results of its main shareholder, Porsche SE, whose adjusted profit after tax fell by more than a third in the first nine months of the year.

The investment company, controlled by the Porsche and Piëch families, reported that its adjusted earnings between January and September stood at 1.6 billion euros, 36% less than in the same period last year.

Porsche SE holds 31.9% of the shares and 53.3% of the voting rights of the Volkswagen Group, as well as a 12.5% stake in Porsche AG, whose majority stake remains in the hands of Volkswagen.

According to the company, the profit decline was "significantly influenced" by the issues at both Volkswagen and Porsche AG. The latter faces costs of billions of euros after delaying the launch of a new electric model above the Cayenne, in an attempt to curb falling demand in China.

Despite the challenges, Porsche SE's Chief Financial Officer, Johannes Lattwein, assured that the company has improved its financing structure, allowing it to maintain a solid position "even in the challenging automotive industry environment."

In September, Porsche SE had already issued a profit warning, reducing its profit margin forecast to 2%, down from the previous range of between 5% and 7%, due to the impact of strategic adjustments at Porsche AG.

At that time, the brand had already announced it would reverse its electric vehicle plans due to lower demand, increasing pressure in China, one of its key markets, and higher tariffs imposed by Donald Trump's administration in the US.

The parent company, Volkswagen Group, stated that it estimated an impact of 5.1 billion euros on its annual results due to the planned product transition for the iconic 911 manufacturer.