Brief
Porsche shifts to luxury focus, cuts volume and jobs
The automaker will lower its break‑even volume, raise prices and trim staff as Chinese sales slump.
By Felo News Desk · Published
Luxury sports car maker Porsche announced on Wednesday that it will sell fewer vehicles at higher prices to restore profitability, the company said at its development centre in Weissach, Germany.
The new strategy, running to 2035, targets a break‑even production level of fewer than 200,000 cars a year and a roughly 20% rise in the average selling price of high‑end models in the medium term.
Porsche’s profit margin fell to 1.1% last year. To improve the balance sheet, the firm plans to cut its workforce by a quarter by 2030, having already announced 9,000 job cuts and a 40% reduction in management posts.
China deliveries are down almost a third in the first half of the year; CEO Michael Leiters told reporters the company will reduce its Chinese dealer network from more than 150 to about 80 by the end of 2026. He added that Porsche will keep investing in internal‑combustion engines, plug‑in hybrids and electric technology, but the iconic 911 will never be electric.
Key facts
- Porsche aims to lower its break‑even production to under 200,000 vehicles per year. (digitaljournal.com)
- The company plans to raise the average selling price of high‑end models by about 20% in the medium term. (digitaljournal.com)
- Porsche has announced 9,000 job cuts and will cut its workforce by a quarter by 2030. (digitaljournal.com)
Sources
- [1] digitaljournal.com — originally reported as “As sector struggles, Porsche puts luxury ahead of volume”
