Porsche boss Martin Winterkorn told shareholders at the AGM on Friday that Porsche's turnover had dropped by only 3.1 percent to 33,200 cars in the first six months of the 2009/10 business year. This compared to a drop of 25 percent since the previous year.

"Porsche is expecting a revitalization of sales in 2010," Winterkorn said, but warned against euphoria. "2010 will definitely be a very hard, very difficult year for the auto industry," he said. By the end of the business year on July 31, the company hopes to sell over 75,000 cars, surpassing last year's turnover. But this target is still considerably less than the 98,650 sold in the last pre-crisis business year of 2007/08.

Consequences of takeover failure

Last year, Porsche flopped in its bid to take over German auto giant Volkswagen, a failure that resulted in Volkswagen buying nearly 50 percent of Porsche. The fusion of the two firms will be completed by 2011, shareholders heard on Friday, and Porsche will be integrated into the Volkswagen corporation as its 10th brand.

"Together we will not only cover all the important car segments, but will increase our innovation potential," Winterkorn promised. "A Porsche must always be 100 percent Porsche. There will be no shortcuts."

In the medium-term, Porsche intends to increase its turnover to up to 150,000 cars every year.

Many shareholders used the AGM to express their anger at how former Porsche heads Wendelin Wiedeking and Holger Haerter handled the takeover bid. Both are currently being investigated by state prosecutors on suspicion of breaking insider trading rules. Winterkorn defended their behavior, claiming that investigations so far had come to the conclusion that nothing illegal had occurred.

Criticism from all sides

Porsche has been subject to intense criticism for giving up its independence. Small investors have also condemned the role played by Volkswagen patriarch Ferdinand Piech during the company's crisis, as well as the 50-million euro ($70-million) payoff that Wiedeking received on being sacked.

Qatar bought 10 percent of Porsche last year following the firm's massive financial troubles, and the Gulf state intends to secure its influence by placing a representative on the board of directors. The Qatar representative will replace Hans-Peter Porsche, brother of the head of the board of directors, Wolfgang Porsche.

bk/apn/AFP
Editor: Nancy Isenson