Porsche 2006 Annual Report Download - page 18

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Group Management Report
and Management Report of
Dr. Ing.h.c. F. Porsche AG
Robust Global Economy
In the reporting year, the global economy continued to grow, driven by the fast
developing countries in Asia. In China alone the gross domestic product grew in
the first half of 2007 at a rate not seen for twelve years, even somewhat eclipsing
the slowing momentum of the US economy. The US economy was indeed suffering
increasingly from the consequences of bad debts in the property market and the
impending loss of assets by consumers. Towards the end of the reporting year
in August 2007, a number of banks also got into difficulties, not only in North
America but worldwide. The impact of the mortgage crisis was, however, restricted
and the USA steered clear of a slump in economic activity. The important econo-
mic force Japan and also the European Union kept on course for growth along-
side China.
In the euro zone, the main driver of the upswing was further growth in investment.
Overall, private consumption also picked up, unfortunately with the exception of
Germany. The increase in VAT at the beginning of 2007 caused Europe’s largest
economy to lag behind. However, all things considered the effects of the tax
increase were contained. Thanks to growing investment in capital goods, the eco-
nomic upswing in Germany continued. Unemployment figures dropped markedly
and good progress was made in the consolidation of public budgets.
German exports continued to grow at a faster rate than world trade as a whole.
The slight dip in the US economy and the strong euro were, however, hardly
perceptible because German companies have greatly improved their international
competitiveness in recent years and the order books are full.
Porsche Sets the Next Record
Once again, Porsche returned record unit sales. Despite the model change in the
Cayenne series, unit sales grew 0.7 percent to 97,515 vehicles in the 2006/07
fiscal year. Yet again, the classic Porsche 911 series was the main driver of
growth. The second generation of the sporty all-terrain vehicle Cayenne was also
very well received by customers throughout the world. Although production of
the first generation was phased out in November 2006 and the new Cayenne was
not launched until the end of February 2007, unit sales of the series in the reporting
year almost matched the figures of the previous year. The Boxster series, to
which the two Cayman models belong, held its position in a segment which is
characterized by tough competition worldwide.
New records in sales, turnover and profit reflect
Porsche’s successful course. The very healthy
core business was, however, affected by expenses
arising from measures to safeguard the future of
the company such as high development costs for
the four-door Gran Turismo Panamera.