2016: Yet Another Year of Growth for Porsche Holding Salzburg

• A million sold cars for the first time (NC and UC)
• Headcount of 35,500 employees (+ 2,400)
• New digital and e-mobility initiatives

Vienna, December 13, 2016 - According to preliminary figures, Porsche Holding Salzburg (PHS) will again record top values for 2016.

Alain Favey, CEO of the Porsche Holding Salzburg Management Board, presented the preliminary figures for the financial year 2016 at today's annual press conference. Selling a million new and used cars, PHS sales in 2016 were up 7.8 %, thereby achieving yet another record. These sales comprise 719,000 NC (+ 7.2 %) and 281,000 UC (+ 9.4 %).

Porsche Holding Salzburg has automotive wholesale and retail operations in 26 countries. Beside Europe, it is present in South America, China and since September 2016 in Malaysia where it took over market responsibility for Volkswagen Passenger Cars. PHS thus has set foot in the ASEAN region.

PHS has 644 dealerships throughout the world, 16 more than last year, and a headcount of 35,500 employees (+ 2,400).

Record sales in automotive wholesale operations

PHS expects total deliveries (passenger cars, LCV, trucks and buses) to amount to 323,300 units by the end of the year, a rise of 11.3 % compared to the prior year. "We are very satisfied with this year's business development, and were able to increase sales in all markets where we do wholesale business", Alain Favey said. Until the end of November, passenger car markets where PHS is operating, grew 8.3 % reaching 1,409,000 new cars. PC market share of the brands represented by PHS amounts to 18 %, an increase of 0.3 percentage points over previous year's value.

Further recovery in CEE region

PHS operates in wholesale on 14 markets across the CEE region and benefits from the continued positive market development. Overall PC market in these countries is estimated at 777,600 units in 2016, up 15.9 % compared to the prior year. Market share of 18.8 % lies at prior-year level. For the sixth time in a row, PHS manages to increase NC sales in the CEE region, delivering 183,000 new cars (+ 14 %) in 2016.

In 2016, Ukraine's market has regained strength. Market picked up 37 % from a very low level. Market growth in Hungary (+ 26 %), Croatia (+ 20 %) and in Romania (+ 15 %) is also remarkable. Porsche Ceska, the most successful import company of PHS in terms of sales behind Austria, will cross this year the threshold of 50,000 sold new vehicles (+ 9 %).

Upward trend also in Austria

Austria's passenger car market will increase to 325,000 registrations by the end of the year, which is a rise of 5.3 % over the previous year.

Official market figures at the end of November

At the end of November, the Volkswagen Group brands achieve a market share of 34.5 % in Austria, remaining at prior year's level in a growing market and thus realizing the fourth most important market share in the Group's history.

Four brands of Volkswagen Group among the top 10

The Volkswagen brand undoubtedly is in leading position in Austria and uninterruptedly number 1 since 1957. By the end of November, Volkswagen managed to increase its sales and to maintain the high prior-year level of 17.1 % in terms of market share. ŠKODA remains in third place, Audi grows in terms of sales and market share and comes in sixth place. SEAT also grows compared to the prior year and ranks ninth.

Seven models among the top 10

Not less than seven models from the Volkswagen Group rank among the ten best-selling models. The VW Golf is number one by far in the ranking and Austria's most popular car - uninterruptedly for 39 years. Then follow the Skoda Octavia, the VW Tiguan and the VW Polo coming in second to fourth place. The Skoda Fabia ranks sixth. Finally, the Seat Ibiza and the VW Multivan occupy eighth and ninth place.

Growth in 4WD vehicle market

The 4WD market in Austria continues to be on the rise. With a market share of 23.7 %, one in four new car customers choose a 4WD vehicle. Volkswagen Group's 4WD models achieve a 36.8 % market share, which is far above the overall market in Austria.

This segment is clearly headed by the VW Tiguan 4MOTION where sales more than doubled in the year of its model change (4,035 registrations by the end of November).

Record year also for Porsche and Exclusive Cars

With 1,290 registrations, 2016 will be another record year for the sports car brand Porsche in Austria. Exclusive Cars with its brands Bentley and Lamborghini keep up and will not only record their best year ever, but also an increase in deliveries to customers.

Bike brand Ducati also grew in 2016, and registrations in Austria will total 785 units (+ 7.1 %).

Diesel topic in Austria

The recall of Volkswagen Group models fitted with an EA189 Diesel engine, which started at the beginning of this year, is moving on very well. Currently, 175,000 models have been approved for service action. The customers concerned willingly accept to have the released update applied. The execution rate for those models which have officially been approved for service action during the first half-year, amounts to 84 %.

It is Volkswagen's intention to release technical measures for all remaining vehicles with an outstanding EA189 service action by the end of the year. Implementation of these measures will however continue into autumn 2017. Porsche Austria intends to inform the customers concerned at the beginning of 2017.

Expansion toward ASEAN region

In September 2016, PHS took over import business for Volkswagen Passenger Cars in Malaysia, entering the ASEAN region for the first time. This South-East Asian country has approximately 32 million inhabitants and an expected passenger car market of 500,000 vehicles in 2016. This year, Volkswagen there delivers some 6,100 passenger car models.

The next step in this region is already scheduled. PHS intends to take over distribution for Volkswagen in Singapore and Brunei as of April 2017 and to launch its import activities and retail dealerships at three locations. Singapore is one of the world's most expensive car markets. Their overall PC market in 2016 totals 93,000 vehicles. In 2016, some 3,600 Volkswagen (PC and LCV) were registered.

Electromobility on the rise

The Volkswagen Group consequently pushes its development in terms of electromobility. On one hand, this is reflected by the introduction this year of new plug-in hybrids from Volkswagen, Audi and Porsche as well as all-electric VW models, such as the e-up! or the e-Golf. On the other hand, very advanced concept cars, such as Porsche's Mission E, Audi's e-tron quattro concept or Volkswagen's I.D. or Budd-e, illustrate the future of electromobility.

By 2025, the Volkswagen Group intends to launch another 30 electric vehicles and plug-in hybrids, striving to become market leader in electromobility.

As per end of November, the all-electric vehicle market in Austria grew 133 %. Up to now, a total of 3,604 electric vehicles were registered.

Volkswagen's electric car models - the e-up! and the e-Golf - represent a share of 12.8 % in this market segment.

Government incentive for new e-Golf in Austria

Last year's sales promotion to offer the e-Golf at the same price as a Golf TDI, produced its effects. E-Golf sales have more than tripled and are expected to reach 400 units in 2016.

The new e-Golf with a range of up to 300 kilometers, more power and torque, will be presented in Europe at the occasion of the Vienna Autoshow. The announced government incentive for EVs of 4,300 euros for private customers and 3,000 euros for corporate customers as well as tax incentives for electric vehicles make the purchase of an e-Golf even more attractive. A further increase in 2017 sales is expected.

Digital initiative

In its newly created Department "Digital and Electromobility", PHS works on concrete projects which deal with new customer expectations and future mobility services.

Future buying experience

Many focal points of development were launched over the past months in order to provide the dealerships, repair shops and above all the customers with new digital services. There is for example the Sales Pad, a programme running on a tablet, which helps the sales consultants in their daily sales process in a new and innovative way as of January 2017, or the Mobile Service Reception, also running on a tablet, which enables a modern and efficient service reception directly at the vehicle. In 2016, already 116,000 service orders were processed this way.

The customer's future expectations as to dealerships and the car purchase of the future are in the centre of various PHS projects called "Porsche InnovationEngine". In-house project teams work with external innovators, such as universities, research facilities or start-ups. It is thereby possible to identify the best ideas on the market, to develop them in-house and to offer the customer tailor-made solutions at an early stage.

The Automotive Retail Lab, a cooperation between the University of Salzburg and Porsche Holding Salzburg existing since April 2016, is working on the customer's future dealership experience in an innovative way.

Platform for customer reviews

With car.advisor, a new review platform for services rendered by a dealership, customers can enter their reviews in a simple and swift way and recommend it on-line. The dealership thereby gets a direct feedback and the possibility to improve their customer care, if necessary. Car.advisor helps the customer in finding the best dealership or service. Car.advisor was first put on the "Das WeltAuto" homepage in December and will be rolled out to the websites of the various brands as a stand-alone review platform.

Market outlook 2017

PHS expects a stable market in Austria for 2017 and a further recovery of the markets in the CEE countries. The positive buying mood in Austria in 2016 was backed by a overall favourable economic situation, a relatively low unemployment rate, a low interest level as well as low fuel prices.

For the upcoming year, PHS doesn't expect these factors to change and therefore assumes that the passenger car market will remain stable in 2017.

The new VW Group brand models, such as the VW Golf, the Audi A5, the Skoda Kodiaq or the Seat Ibiza, to be launched in 2017, will help boost sales. PHS expects to keep its market performance next year on the same level as in 2016.