2014: Continued Growth for Porsche Holding Salzburg

2015-03-17

Porsche Holding Salzburg (PHS) closes 2014 again with a sales record and continues on a course of growth despite challenging market conditions. Consolidated turnover was €17.1bn, which is 4.9 % up compared with the prior business year.

New and used car sales on the 24 markets that PHS operates as importer and retailer, grew 4.4 % to 867,249. New vehicle sales were accounted for 623,203 (+ 5.3 %) units. Used car sales rose 2.2 % to 244,046 units.

Record year for wholesale

PHS does automotive wholesale business on 16 markets (Austria, CEE, Chile and Colombia) for the Volkswagen Group brands. By selling 281,456 (+ 2.7%) new cars through wholesale business, PHS not only set a new record in terms of vehicle sales but also in terms of turnover which was reported at €6.0bn (+ €0.2bn).

Stable development in Austria

Despite a declining overall passenger car market (- 4.9 %), PHS has managed to maintain its market share in Austria at 35.8 %, clinging onto its high prior-year level (35.9 %). Volkswagen Group brands proved their unified strength counting four brands and six models among the Top 10.

The amended standard consumption tax (NoVA) legislation issued by the government in March 2014 did not lead to the desired effect. "Due to the market downturn, Austrian's Finance Minister lost expected additional revenues from NoVA and VAT of roughly €80m in 2014", reckons Alain Favey, Porsche Holding's CEO.

In 2014, PHS had a turnover of €5.0bn in Austria, which is at prior-year level. Workforce also remained nearly unchanged at 5,995 (in 2013: 5,956).

Slight recovery in wide parts of the CEE region
PHS benefits from its continued market presence to generate further growth

In 2014, an upward trend could be observed in many CEE countries . Markets develop increasingly positive, however, starting off from a low level.

Hence, passenger car markets in Romania, Hungary and Croatia grew 20 % compared with the prior year. Unlike the situation in Ukraine, where the market dropped by more than half in just a year. Overall, markets in the CEE region fell by 5.9 % due to this market slump. Without the Ukrainian market, growth would register at 14.2 % in this region.

PHS grew above current market average. 198,933 new vehicles were sold throughout Eastern Europe, up 13.1 % over 2013, and even 29.8 % without Ukraine. Market share of the Volkswagen Group brands represented by PHS rose by 2.9 percentage points to 18.7 %. Used car sales increased to 12,381 units (+ 15.6 %).

"We have maintained our trade activities during the crisis in these countries and now benefit from growth. Hence, we are more than able to compensate for losses in Ukraine", says A. Favey, confirming the decision to stay there during the crisis. He adds: "We will also stay in Ukraine and hope that the situation will calm down soon. To us, Ukraine continues to be a strategic market in Eastern European offering us great potential in the future."

Positive development of own dealerships
in Germany and Spain

Since 2012, PHS has management responsibility for a total of 163 own dealerships in Germany and Spain which are concentrated in two subsidiaries, VGRD (Volkswagen Group Retail Deutschland) and VGRS (Volkswagen Group Retail Spain). Driven by the positive market trend, sales increased in both markets generating a turnover of €4.1bn (+ 5.4 %).

VGRD's new vehicle deliveries increased to 79,972 units (+ 6.1 %) and its used car sales to 84,052 units (+ 4.8 %). Workforce remained at prior-year level at 8,224.

VGRS sold 26,028 new vehicles (+ 23.1 %). Selling 11,580 units, the used car business remained at prior-year level. Workforce counted 1,511 remaining at 2013 level.

South America

PHS has been operating import and retail business in Colombia since 2012 and in Chile since 2013, and continues to gather experience in South America. Due to recent currency developments in South America, market situation is challenging. Passenger car market share could nevertheless be increased from 2.6 % to 2.8 %. Further growth is targeted.

Business in China grows

Retail activities have started in China in 2005 and continue to grow. In 2014, six new dealerships were opened. Last year, the current total of 23 dealerships sold 16,610 new vehicles - an increase by 19.5 % compared with the prior year. Turnover rose to €1.3bn (+ 11.2 %). Due to the additional dealer locations, also workforce grew 26.7 % to 1,580.

Multi-brand automotive distribution group PGA which operates 283 dealer locations in France, Netherlands, Belgium and Poland, sold 120,026 (+ 4.5 %) new cars and 116,586 (+ 1 %) used cars in 2014, achieving a turnover of €4.3bn (+ 9.7 %).

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