By Paolo Laudani
(Reuters) -Luxury sports carmaker Porsche has seen its sales slide in China and come under pressure in the United States, a reflection of how Germany’s once dominant carmakers are battling the toughest global conditions in years.
Porsche car saw global deliveries decline by around 6% in the third quarter of this year, calculations based on its nine-month and half-year data showed. Sales were down around 20% in China and 5% in North America in the quarter.
The carmaker said the slide in China was linked to “challenging market conditions, particularly in the luxury segment, and the intense competition in the Chinese market.”
Porsche, part of the Volkswagen group, is facing a reckoning from all sides with U.S. tariffs that are starting to hit home, a stalling China market and teething issues shifting from its famed petrol engines to electric vehicles.
Porsche and VW dual CEO Olive Blume said last month that the “party was over” for European carmakers. Porsche cut its profit margin guidance in September and flagged delays to the roll-out of its electric cars.
GERMANY’S ONCE MIGHTY AUTO SECTOR FEELS SQUEEZE
Porsche’s struggles reveal a wider malaise in the European automobile sector, especially in its home market Germany.
BMW this week trimmed its 2025 earnings forecast citing delays in customs refunds and continued weakness in China, while Daimler Truck said its third quarter sales were hit by weakness in its North America segment.
Mercedes-Benz, another German auto manufacturer, said its sales between July and September declined by 12%, with big hits in both China and the United States.
Investors will have their eyes peeled for Europe’s top carmaker Volkswagen, which on Friday will publish its third quarter sales after saying last month it would take a 5.1 billion euro ($5.93 billion) hit from Porsche’s issues.
“We expect the market environment to remain challenging,” Matthias Becker, member of the executive board for sales and marketing at Porsche AG, said in a statement on Thursday.
($1 = 0.8604 euros)
(Reporting by Paolo Laudani, Editing by Friederike Heine, Adam Jourdan and Susan Fenton)
