FRANKFURT, July 29 (Xinhua) -- German luxury carmaker Porsche delivered 122,306 vehicles in the first half of the year, down 16.5 percent from the same period last year, according to its half-year report released Wednesday.
Sales revenue fell 5.1 percent year-on-year to 17.23 billion euros (19.28 billion U.S. dollars). Despite the declines, operating profit rose 33.9 percent, which the company attributed to rigorous cost management, pricing measures, an improved product mix and its value-over-volume strategy.
Porsche is pursuing a strategic realignment aimed at strengthening its financial position and competitiveness. The company also said it was preparing a further round of job cuts involving about 5,000 positions. Together with previously announced reductions, Porsche plans to cut around 9,000 jobs, equivalent to roughly 20 percent of its workforce.
The measures reflect broader efforts by German automakers to reduce costs and restructure their businesses amid weaker demand, particularly in China.
Porsche's parent company Volkswagen sold around 4 million vehicles in the first half of the year, down 8.4 percent year-on-year. Its operating profit fell 11.6 percent to 5.9 billion euros (6.68 billion U.S. dollars).
Volkswagen Chief Financial Officer and Chief Operating Officer Arno Antlitz said the group's operating margin of 3.8 percent was "too low" and called for further action.
BMW delivered around 1.15 million vehicles in the first six months, down 4.2 percent from a year earlier.
German automakers have been particularly affected by slowing sales in China, with deliveries by major manufacturers falling by around 20 percent to 30 percent in the first half of the year.
Hildegard Mueller, president of the German Association of the Automotive Industry, said earlier this month that the industry needed "comprehensive and far-reaching reforms" to return to growth.
"They face the task of consistently securing and reshaping their competitiveness and business models. This entails cost discipline and far-reaching reforms to their business models," Mueller said.
Business sentiment in the sector also remained weak. The ifo Institute's business climate index for the German automotive industry fell to minus 21.4 points in June from minus 20.7 points in May.
Electric vehicles, however, remained a relative bright spot. New registrations of battery electric and plug-in hybrid vehicles in Germany rose 60 percent year-on-year to 116,300 units in June, according to industry association VDA. ■
