Dr. Ing. h.c. F. Porsche AG, Stuttgart, is preparing for the next period in its future with the imminent securing of a long-term agreement for Porsche locations at Zuffenhausen and Ludwigsburg, along with Weissach for the first time. This latest development coincides with news that Porsche Group sales are up 13.3 per cent for the first 10 months of the 2004/2005 fiscal year (31st July).

The aim of the location agreement is to guarantee employment for the permanent staff through to 2010 by creating more flexible working hours and increasing productivity. This development follows the successful visit by Chancellor Gerhard Schröder last week at the Works Meeting of Dr. Ing. h.c. F. Porsche AG, Stuttgart.

Schröder was impressed by the commitment shown at Porsche and the efforts to increase the Company's competitiveness and secure jobs. Schröder stated: "Porsche proves that a German company can be extremely successful in international competition. The secret of its success lies in its magnificent vehicles and an exemplary culture of co-operation between the employer and the employees."

It was a great honor for the Chairman of the Group Works Council, Uwe Hück, to be able to report on the current status of negotiations to secure the locations in the presence of the German Chancellor. He appeared certain that it will soon be possible to sign the agreements. The Chairman of the Joint Works Council listed some cornerstones of the agreement to secure locations; which included investments in bodyshell assembly, assembly, and paint shop systems. A key aim of the agreement should be that it will be possible to build more vehicles in Zuffenhausen, further underlining the importance of Porsche's headquarters. Zuffenhausen's strong position should be emphasised by ensuring that all engines continue to be manufactured there in future, and that full vehicle manufacture of the 911 as well as the production of Boxster models remain at this location.

The CEO of Porsche AG, Dr. Wendelin Wiedeking, also stressed the importance of the new agreement to secure locations. Wiedeking announced: "Above all, the agreement will provide clear proof of Porsche's loyalty to its Zuffenhausen headquarters. In the 911 and the Boxster, we are making vehicles right here that make this sports car manufacturer unmistakable, vehicles that help to make "Made in Germany" a seal of quality sought after all over the world. We want things to stay this way in the future."

However, the location agreements do not include Porsche’s production facility at Leipzig, which is subject to separate industrial agreements.

The imminent securing of the Zuffenhausen, Ludwigsburg and Weissach location agreements comes as Dr. Ing. h.c. F. Porsche AG, Stuttgart, announced its results for the first 10 months of the 2004/2005 fiscal year (31st July); showing that between 1st August, 2004 and 31st May, 2005, Group turnover rose by 5.4 per cent against the same period during the previous year to 5.34 billion euros. Production and sales were also up for the period despite persistently difficult worldwide economic conditions.

During the first 10 months of the current fiscal year, Group sales increased by 13.3 per cent to a total of 69,685 vehicles (previous year: 61,496 units). This figure primarily reflects the successful launch of the new sports car generations, which have been met with an outstanding response from customers worldwide.

To the end of May 2005, sales of the 911 series had risen 21 per cent to 22,973 vehicles. Sales of the Boxster also grew, in this case 16 per cent to 12,166 vehicles. The sporty Cayenne SUV continues to enjoy high demand, having sold 33,997 units (up 6.6 per cent). The high performance Carrera GT sports car sold 549 units during the first 10 months (previous year: 124 vehicles).

Porsche has again extended its production volume. A total of 72,942 vehicles were built during the first 10 months of the current fiscal year (up 9.8 per cent), with the Cayenne responsible for the largest share with 33,855 units (down 2.2 per cent). Production figures for the 911 rose 12.1 per cent to 23,033 vehicles, while a total of 15,483 Boxsters (up 39.2 per cent) and 571 Carrera GT were built (previous year: 174 units).

Porsche is heading toward an all-time high in sales during the current fiscal year 2004/2005. It is anticipated that a total of more than 80,000 vehicles will be sold compared to 76,827 the previous year.

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