Porsche has lowered its outlook for the third time this year due to American import duties. The Stuttgart-based sports car manufacturer anticipates that its profit margin this year could fall to 5 percent.
In April, the company was still aiming for at least 6.5 percent, and before that, over 10 percent. The lowered profit expectation takes into account the impact of the new American tariffs of 15 percent, which the European Union agreed to. In addition, Porsche expects extra costs of 1.3 billion euros to reposition the brand. This involves investing more in models with combustion engines and plug-in hybrids.
Earlier this month, it was announced that Porsche’s global sales fell by 6 percent in the first half of the year. The US is the largest market for Porsche, with strong sales of more expensive models like the 911. However, Porsche does not have production facilities in the US and is entirely dependent on imports from Europe.