Overview
- Porsche unveiled the broad Strategy 2035 at its annual general meeting on Tuesday, with CEO Michael Leiters saying the firm will prioritise margins over volume and simplify its product range to boost capital efficiency.
- The move follows a collapse in profitability in 2025 when net profit fell about 91 percent to €310 million, a decline the company attributes mainly to weak China sales, US tariff costs and lower demand for some electric models.
- Management confirmed 2026 guidance of about €35–36 billion in revenue and a 5.5–7.5 percent operative margin; those forecasts include estimated extraordinary charges of €800–900 million and tariff impacts near €700 million.
- Concrete near-term actions include cutting selected Taycan body variants for the US market while keeping the 718 entry line to preserve brand access, and deeper use of Volkswagen Group modular platforms to cut development costs.
- Porsche is negotiating a cost-savings package with employee representatives that will include socially negotiated headcount reductions, and the company will present detailed targets and metrics at a Capital Markets Day on 7 October 2026.