Porsche to Trim Spending, Production

Porsche AG CEO Matthias Mueller tells Reuters the company plans to modestly reduce product investment, cut production and delay at least one new-model program to offset slower-than expected sales growth.

Mueller says Porsche now expects volume in 2013 to be about the same as this year but 5%-10% below its previous sales target.

Sales by the Volkswagen AG unit surged 22% to a record 118,900 vehicles in 2011 and are up another 15% so far this year.

But Mueller's assessment suggests Porsche is bracing for a significant fall-off in demand later this year. So far Germany's luxury car brands have been largely immune to the sales slump affecting Europe's midrange and low-price models.

Even so, earlier this month Porsche boosted the first-year sales target for its Macan small crossover due in 2014 50% to 75,000 units.