By Urvi Dugar
(Reuters) -Porsche SE, the holding firm of Porsche AG, said on Thursday it expects impairments on its stake in the carmaker to nearly double to a range of 2.5 billion euros to 3.5 billion euros ($3.63 billion).
The holding firm also said it expects writedowns related to Volkswagen to tend towards 20 billion euros in its previously expected range of 7 billion euros to 20 billion euros. Porsche SE is Volkswagen’s top shareholder.
Volkswagen declined to comment.
Porsche SE added that the expected impairment on its stake in Porsche AG will also affect its annual financial results, though to a lesser extent.
Porsche AG said expenses for vehicle development and battery activities in its units will impact its operating profit and automotive net cash flow by up to 800 million euros in 2025.
The German luxury carmaker said it expects 2025 sales revenue between 39 billion euros and 40 billion euros, and automotive net cash flow margin in a range of 7% to 9%.
As the carmaker struggles to boost flagging earnings and sales in China, the board is looking to expand the company’s product portfolio to include models with combustion engines or plug-in hybrids.
The company added it will also make adjustments to its corporate organization.
On Saturday, the supervisory board of Porsche AG started talks to end Chief Financial Officer Lutz Meschke’s and sales executive Detlev von Platen’s contracts early.
In October, the carmaker said it would cut costs. This comes at a time when other top-end German carmakers took a battering at home and in China in 2024, sales volume data showed, as wealthier consumers held back on purchases amid an uncertain economy and slower-than-expected electric vehicle sales.
($1 = 0.9633 euros)
(Reporting by Urvi Dugar; Editing by Alan Barona and Shounak Dasgupta)
