POAHY Porsche Automobile Holding SE (PK)

   By William Wilkes 
 

FRANKFURT--Porsche AG (PAH3.XE) said it would pay each of its staff a bonus of almost 9,000 euros ($9,992) despite belt-tightening elsewhere in the Volkswagen AG group.

Porsche, best known for its 911 sports car and Cayenne sport-utility vehicle, last week said its net profit rose 6% to EUR2.33 billion in 2015 on a 25% jump in revenue after a record-breaking sales year. The car maker will pay its roughly 15,600 staff a bonus of EUR8,911 each, consisting of a EUR8,211 cash payment and a EUR700 payment into retirement funds. Porsche paid a bonus of EUR8,600 payment for 2014.

"Our employees receive my special thanks because--with their knowledge and passion--they have contributed to the fact that we were able to achieve such an extraordinary result in a by no means easy environment," Porsche Chief Executive Oliver Blume said.

The bonuses come as Volkswagen stares down billions in potential costs and fines related to its emissions scandal, after admitting last September it had installed software in roughly 11 million vehicles that allowed them to dodge pollution tests. It has since set aside a $7.3 billion provision to fix the tainted engines and scaled back investments.

On Tuesday, Volkswagen's financial unit said it would cut costs further this year to help offset the impact of the emissions scandal. Volkswagen is also expected to shed around 3,000 office jobs, with the reductions likely met through attrition, early retirement schemes, allowing temporary contracts to expire and transferring office workers to vacant positions, sources told The Wall Street Journal last week.

Porsche warned earlier this month that it wouldn't be able to repeat the rapid sales and profit growth of recent years in 2016 due to the need for heavy investment electric car technology as well as a weakening global luxury car market.

Porsche's labor chief Uwe Hueck said employees probably hadn't expected to receive such a bonus.

"The best part is everyone profits from it, whether he works in production, back-office services or administration or whether he's an engineer," Mr. Hueck said.

Write to William Wilkes at william.wilkes@wsj.com

(END) Dow Jones Newswires

March 16, 2016 11:36 ET (15:36 GMT)

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