(BFM Stock Exchange) – The German premium car manufacturer once again lowered its forecasts for the current year, due to its strategic turnaround in the electrical. Porsche’s setbacks have repercussions on his Mother House Volkswagen.

“The party we have celebrated in the automotive industry for decades is completed in its current form,” said Munich Automobile Salon, Oliver Blume, Chairman of the Board of Volkswagen, the largest European manufacturer, and its luxury division Porsche.

Between requests at half mast in China and American customs duties, the automotive sector navigates in troubled waters. Including Porsche, who lowered his annual profitability prospects at the end of July due to American customs duties, but also due to the weakness of the Chinese market, and a difficult transition from its range to electric cars.

To reduce the terms of its manager, Porsche is “sandwiched” between these different opposing forces.

This vice is so powerful that the premium automotive group declared Friday, September 19 after the closing of European markets having carried out a strategic reorientation which will come to weigh on its accounts.

Vollying on electric

Porsche has explained to postpone the launching calendar for its electric vehicles, and concentrate new models with thermal and hybrid motors. “We see massive changes in the automotive environment,” said Oliver Blume, CEO of Porsche and Volkswagen, citing a clear drop in demand for electric vehicles, and weakness of the luxury market in China.

In the first half, the German premium car manufacturer, for example, announced a drop in deliveries of electric vehicles in China of 28% over a year.

The flip-flop of Porsche in the electric will weigh on its operating profit up to 1.8 billion euros in 2025. A charge which leads it to lower its annual prospects again. For the current year, Porsche AG is counting on an operating margin “up to 2%” against a previous forecast of 5%to 7%.

This lowering “implies a downward revision of the 2025 EBIT consensus (operating profit) by around 70%”, add the ODDO BHF analyst.

Porsche also tables sales between 37 and 38 billion euros, and an automotive operating margin between 10.5% and 12.5% ​​against a previous forecast of 14.5% to 16.5%.

“A new Warning (Warning) (the 3rd this year) which illustrates the deep break that the group is going through and the pressures on all sides it faces. This Warning also crystallizes our fears compared to the risk of execution associated with the modifications of the product plan, a risky, expensive exercise, and which could, in our opinion, always reserve unpleasant surprises (see multiple delays on the products/platforms years) “, wishes to warn Oddo BHF.

Dax ousted

Porsche’s difficulties go back by capillarity also to Volkswagen, which holds more than 75% of its subsidiary. Porsche’s parent company has thus declared that this flip-flop will weigh for 5.1 billion euros on its operating profit, bringing the operating margin of sales to between 2 and 3 %, against 4 to 5 % before.

These announcements are logically sanctioned by investors, the title Porsche AG losing 7% this Monday, September 22, while Volkswagen, falls 6.8% on the Frankfurt Stock Exchange.

Porsche leads to its wake the other car manufacturers listed in Germany. Wednesdays-Benz gave up 2.9%, BMW drops by 2.45%. In Paris, Stellantis contracts by 3.2%, Renault contains its decline at 0.5%.

Chance of the calendar, Porsche has not been a part since Monday of the Dax Monday, the star index of the Frankfurt Stock Exchange. This eviction testifies to the serious difficulties encountered by the German automobile group, since its IPO three years ago.

Introduced with great fanfare on the Frankfurt Stock Exchange in 2022 at a price of 82.5 euros, Porsche AG has since experienced a painful outing of road. The German premium and subsidiary manufacturer of Volkswagen is currently evolving around 40 euros per share, more than 50% less than its introductory course. The communication of the company, will hardly help to restore its stock market …