Porsche Will 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. Earlier this month the company boosted the first-year sales target for its upcoming Macan small crossover 50% to 75,000 units when the vehicle goes into production late next year.

But Mueller's assessment suggests Porsche is bracing for a significant fall-off in demand that begins 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.