March 9, 2025 – According to Bloomberg, Porsche Automobil Holding SE has forecasted a post-tax loss of approximately 20 billion euros for the 2024 fiscal year, primarily due to the depreciation of its investment assets. This significant loss underscores the severe pressures faced by top European automakers.
As the largest shareholder of Volkswagen, Porsche Holding disclosed in a document on Friday that it recorded a non-cash impairment loss of 19.9 billion euros on the book value of its investment in Volkswagen, almost reaching the previously estimated maximum value. Additionally, the impairment of its investment in Porsche AG amounted to 3.4 billion euros, also close to the expected upper limit.
This financial report update marks the conclusion of a complex financial adjustment process. Last December, Porsche Holding stated that it had to rely on analysts’ forecasts instead of internal assessments for asset impairment testing due to Volkswagen’s delayed corporate planning. Both Volkswagen and Porsche are facing multiple challenges, including weak demand in the European electric vehicle market, intensifying pressure in the Chinese market, and the impact of new tariff policies in the United States.
Furthermore, Porsche Holding indicated on Friday that it expects net debt to be approximately 5.2 billion euros by December 31, 2024. However, according to German commercial law, the impairment amount for its investment in Porsche AG is relatively smaller, at 2.9 billion euros, which could result in an annual loss of 1.5 billion euros. The company emphasized that these asset impairments will not affect its cash flow.
