Porsche to Invest 1 Billion in Mission E Electric Model

FRANKFURT—Porsche AG on Friday said that it would invest about 1 billion euros ($1.07 billion) and create more than 1,000 jobs in preparation for the production of its Mission E electric model.

The bulk of the planned investment will go to Porsche's main Zuffenhausen plant, in the northern suburbs of Stuttgart. Porsche said it would invest €700 million in Zuffenhausen, where it plans a new paint shop and assembly plant and to expand existing facilities.

Porsche's Mission E project threatens Tesla Motors Inc., which has established itself as the lead maker of high-end electric sports cars. Tesla's pricey Model S sedan has been lauded for its credibility as a street performance vehicle, and executives at Porsche and other German auto makers are eager to rival it.

Porsche also said Friday that Albrecht Reimold would join its management board with responsibility for production, effective Feb. 1. He replaces Oliver Blume, who recently became chief executive at the sports car maker.

Mr. Reimold, 54, will transfer to Germany from his current position at a Volkswagen plant in Slovakia which also produces the body for Porsche's Cayenne, the company said.

Since September, the Volkswagen group has made a number of management changes in the wake of an emissions scandal that has touched Volkswagen, Audi, Porsche and other subsidiaries.

"I know Albrecht Reimold as a knowledgeable team player," Mr. Blume said in a statement. "He knows that achieving the best quality in production facilities depends on people."

The Mission E concept car was introduced at the Frankfurt Auto Show in September.

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(END) Dow Jones Newswires

December 04, 2015 11:25 ET (16:25 GMT)

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