Last year, 911 sales at 27,000 were off 14%.
Porsche announced this morning that it would extend shortened working hours at the Zuffenhausen plant until the end of March 2010.
In the coming three months, approximately 2,300 employees who make 911 sports cars will not be working on a total of 16 days, according to a statement issued jointly by the Management Board and Works Council of Dr. Ing. h.c. F. Porsche AG.
This follows short time of 18 days for the September to December period.
The Works Council said it came to an agreement with Porsche to ensure that employees will “suffer no financial disadvantages” because of these shortened hours.
Bitte!
It is the first time since 1995 that the sports car manufacturer shortened hours, in what was once thought to be a recession proof business.
In November, Porsche SE reported it lost (-€4.4) billion before taxes for the business year 2008/09, or operations for August 1, 2008 to July 31, 2009. Net loss was (-€2.52) billion for the 12 months.
The loss was Porsche’s first annual deficit since 1994.
On the same day as the losses were announced, Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen AG, and Hans Dieter Pötsch, Member of the Board responsible for “Finance and Controlling,” joined the Board of Management of Porsche.
Those appointments were part of VW’s ongoing integration of Porsche into its business, after the smaller company failed to gain control of VW with borrowed money during a contentious multi-year takeover bid, which failed earlier this year when Porsche debt reached an unsustainable €10 billion.
Earlier this week VW took 49.9% ownership in Porsche AG at a price of €3.9 billion. It will buy the balance in 2011. VW expects that Porsche will eventually add €700 million in profits annually to its business.
It is ironic that the profitable VW is also financing the takeover by issuing debt and watering its stock. Last week, VW shareholders authorized the sale of up to 135 million non-voting preferred shares during the next five years. Additional shares could be offered in the first half of next year, the company said.
The Porsche plant in Leipzig, which produces the Cayenne SUV and the new Gran Turismo Panamera sedan, is not affected by the shortened hours.