Porsche is small but highly lucrative

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Porsche is small but highly lucrative
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Some smaller VW shareholders think it's time to reclaim Porsche as a stand-alone business

to car buyers is built on the growl and scream of its internal-combustion engines. That is why the firm elected not to build the Taycan, its brand-new all-electric model, at a spacious fresh site but instead cram production into a plot at its headquarters in Stuttgart, hemmed in on all sides by suburban housing.

Making a success of electrification is as vital to Porsche as it is to Volkswagen Group, its parent company, which also launched the.3, the first of a range of electric vehicles, at the Frankfurt motor show, which opened on September 10th. In some ways, Porsche is a tiny cog in Volkswagen’s machine. It made 253,000 cars in 2018, out of 10.9m vehicles atcars. But it makes so much money forGet our daily newsletter’s high-revving engine.

Porsche began to boom once it cannily realised that its coveted horse-and-antlers badge could adorn the bonnets of a range of less obviously sporty models. It sold 55,000 sports cars in 2002, when it launched the Cayenne, a bulky, the Macan, now make up 64% of production. Ferdinand Dudenhöffer of the Centre for Automotive Research, a think-tank, reckons that electric cars could help Porsche double sales in five years.

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