Engine tax forces Porsche to downsize in China

Porsche, one of the most powerful sports cars in the world, which makes 95% of its cars with an engine capacity of three to four liters, will reduce the size of its engines for the market following Beijing’s decision to levy a higher consumption tax on large vehicles. Helmut Broeker, the head of Porsche China, said the tax had lifted the retail price of the company’s cars by up to 30% and it had already lost some customers. (September 22, 2009)