"Sports car factory 35" - that's the name of the new renovation concept that Porsche boss Michael Leiters is presenting today at the Stuttgart sports car manufacturer's capital market day. Essentially, it says that Porsche will build fewer cars, but more exclusive, meaning more expensive models - with which more money will then be made. At the same time, the VW subsidiary wants to continue to “rigorously” reduce costs, said Leiters.
Management's goal is to achieve a margin of ten to 15 percent again in the medium term with sales of 41 to 45 billion euros. However, Stuttgart has abandoned the goal of a margin of 20 percent like its competitor Ferrari.
Porsche found itself in difficult waters last year, primarily because the Chinese market collapsed. This trend continued in the first half of 2026, with deliveries falling by 166 percent. The reasons are weak Chinese luxury demand and increasing competition from Chinese manufacturers. But high US tariffs and failed management expectations under its predecessor Oliver Blume regarding the electric drive strategy have also recently weighed on the luxury brand.
“We will not give up on this market,” emphasized Leiters with regard to the Chinese market. Overall, however, he expects the market environment to continue to be challenging. Porsche sees growth potential in the USA, where the sales share is expected to increase by 35 percent. In Europe, a stable share of 35 percent is expected.
More top models
In view of falling sales, the sports car manufacturer wants to break even with fewer than 200,000 sales per year in the future, and according to Leiters, as early as 2027. Porsche wants to rely on the strength of its brand in the future.
The focus of the offering should be shifted upwards, towards lucrative top models and custom-made products. With improved products, Leiters wants to increase the average price of top models, of which at least 10,000 are to be sold per year, by 20 percent to more than 330,000 euros.
In order to reduce complexity, the number of variants should be reduced by a fifth and their sales by 30 percent. Leiters is planning new top models: a super sports car platform and a luxury SUV above the Cayenne. By the 2030s, the drive mix for models and sales should consist of two-thirds combustion engines and one-third battery-electric cars. Porsche is thus further reducing its electric ambitions under Leiters, citing demand.
Costs down - up to 30 percent fewer jobs
A central component of the restructuring plan is cost reductions. The aim is to improve profitability in all areas from development to production, purchasing and administration to sales. The use of shared platforms with its sister company Audi should also bring efficiency.
The workforce of around 42,000 is expected to shrink by 25 percent in the medium term - "with a strategic goal of 30 percent." In two rounds of negotiations with the works council, the reduction of 9,000 jobs by 2035 has already been agreed. 40 percent of management positions will be eliminated. The reduction should be carried out in a socially acceptable manner, i.e. without layoffs.
DAX gives back profits
Meanwhile, further rising oil prices and bond yields are causing a bad mood on the Frankfurt Stock Exchange. The leading index DAX gave up a large part of the previous day's gains and slipped by around 1.4 percent in the early afternoon to just under 25,100 points.
The MDAX, which includes both the VW holding company Porsche SE and the shares of the car manufacturer Porsche itself, lost almost one percent. While Porsche Holding is gaining in volatile trading, Porsche AG is falling. In the DAX, the preferred shares of the parent company Volkswagen gain around half a percent.
