Porsche said to plan $6.8B profit push for electric cars

Porsche has an ambitious plan to improve operating profit by 6 billion euros ($6.8 billion) over eight years by streamlining operations as the automaker spends more to develop and build electric cars, according to people with knowledge of the matter.

Porsche aims to increase earnings before interest and taxes by about 750 million euros annually over a timeframe starting this year and running through 2025 by increasing efficiencies, cutting costs and boost contribution from new business such as digital offerings, said the people, who asked not to be identified because the discussions are private.

The increase is necessary to maintain the Volkswagen Group brand’s target of a 15 percent return on sales. Porsche declined to comment.