Porsche 2004 Annual Report Download - page 9

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ceed in regaining its former strength. One of our declared aims is
incidentally to offer constructive support in achieving this and there-
fore to be represented on the VW Supervisory Board to an extent
corresponding with our participation. We regard this as a thoroughly
obvious development, since Volkswagen and Porsche can in no way
be regarded as relevant competitors: in terms of their sales, the
two companies overlap by no more than 2.8 percent.
It is important to note that participation in VW does not involve any
change in our plans for the Porsche brand. We shall pursue our
current model offensive without hesitation. This strategy is all the
more valid now that cooperation with Volkswagen can be regarded
as secure, and provides us with the backing that we need to pursue
our own path with the necessary determination.
This means above all that we will be increasing the appeal of our
model program still more. With the latest 911 and Boxster model
generations we have already demonstrated very clearly that we pro-
pose not only to defend our position as the world’s most successful
manufacturer of sports cars, but also to extend it. The new all-wheel-
drive versions of the 911 Carrera, and the new Cayman S, will pro-
vide a strong stimulus in this respect. The Cayman S in particular can
be regarded as evidence that even in its core business area, Porsche
is always good for a surprise. This new model, a two-seat mid-engin-
ed sports car with a fixed-roof body, fills the gap between the Boxster
and the 911. It will appeal in particular to a younger, demanding
group of people with sporty interests, which will enable Porsche to
extend its potential customer base still further.
The Cayenne has already demonstrated most effectively that Porsche
can access new customer groups successfully. On new markets
such as China or Russia, which we are currently penetrating most
determinedly, this sports off-road vehicle is the main attraction in our
sales program. The Cayenne of course not only stands for most gra-
tifying sales results but is also evidence that Porsche has transfor-
med itself successfully from pure sports-car manufacturer to supplier
of exceptionally sports premium automobiles of other kind too. A
sign that we intend to pursue this path further is the recent decision
to build the ‘Panamera’, a premium-category four-seat sport coupe,
that is scheduled to reach the market in 2009. This fourth model
line is intended to secure additional sales potential for Porsche in the
segment occupied by higher-priced sedans and coupes and this give
the company an even broader sales base from which to operate. In
no way does the investment in VW interfere with this clearly defined
product strategy: Porsche will pursue the path it has already decid-
ed upon with all the necessary determination.
Another topic area with relevance to a secure future is being given
close attention: the growing demand for environmentally acceptable
forms of vehicle propulsion. By the end of this decade we will there-
fore be introducing a Cayenne with hybrid driveline – a joint develop-
ment project with the Volkswagen Group. It should be noted, inciden-
tally, that only cooperation of this kind offers Porsche a practicable
economic basis for such a project to be undertaken.
In the past fiscal year the company operated at a level of profitability
well above any other automobile manufacturer anywhere in the world.
This was made possible by increasing efficiency – a task to which we
are unceasingly committed. It includes regular re-examination and
optimization of internal structures, continual reductions in the time
needed to respond to market changes and ongoing increases in cost-
saving potential in all the company’s business areas.
It seems almost self-evident to point out that all our projects depend
on the availability of highly qualified, motivated employees. Their part
in the company’s success has once again been acknowledged by
the granting of suitable special payments. In addition, the jobs of all
members of the Porsche AG workforce have been secured until the
year 2010 by a location assurance agreement, concluded in July
2005. This is a clear acknowledgement of the value of the ‘Made in
Germany’ seal of quality and of Germany as a manufacturing loca-
tion, the positive development of which is important to all of us at
Porsche. Our participation in VW is further express confirmation of
this policy.
Last but not least, our social commitments encourage customers,
staff, business associates and stockholders to identify closely with
the company’s progress. This was again evident in the past fiscal
year, and we shall do everything within our power to ensure that it
continues to hold good in the future.
Dr. Wendelin Wiedeking
President and Chief Executive Officer