Porsche CEO Confirms Plan for $6.8 Billion Profit Boost by 2025

(Bloomberg) -- Porsche AG is planning to boost its profits by 6 billion euros ($6.8 billion) by 2025 as it reduces costs and focuses on digital development, Chief Executive Officer Oliver Blume told German magazine Automobilwoche in an interview.

“On the cost side, it’s about reducing complexity in drive variants, more common parts between the different series, less physical prototypes and more digital development," he said. By 2025, "we want to target an additional annual profit contribution of two billion euros."

Blume said Porsche’s 32,000 employees would remain unaffected by the plans, and that the company plans to hire 1,500 more staff for its electric-powered Taycan model.

Last month, Bloomberg reported the profit goal, saying the carmaker aims to increase earnings before interest and taxes by about 750 million euros annually through 2025 by increasing efficiencies, cutting costs and boosting contributions from new business such as digital offerings.

To contact the reporter on this story: Carolynn Look in Frankfurt at clook4@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Christopher Elser

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