Porsche aims to raise profits by €6bn by 2025

Porsche is planning to improve its operating profit by €6bn over the next eight years by streamlining operations as company spends more in the development and production of new electric vehicles reported Reuters on Friday.

Porsche said it is seeking to increase its earnings before interest and taxes by €750m every year until 2025. It plans to do so by increasing efficiency, cutting costs and boosting contribution for new business.

It is also boosting its range of electric vehicles which will require the company to push for savings from elsewhere to offset the lower profits that will come from the electric cars.

Porsche is currently working on electric vehicles alongside Audi and could use the jointly developed underpinnings to offer electric versions of already existing cars.

The Volkswagen group is on its way to become "the electric powerhouse within the auto world" and should have higher revenue and earnings momentum than Daimler AG and BMW AG, Bankhaus Metzler analyst Juergen Pieper said in a note.

After 2025, Porsche expects that efficiency gains will improve profits by €2bn annually, Reuters reported.