Porsche unveiled a new strategic plan aimed at strengthening its position as a premium sports car manufacturer by focusing on exclusivity and higher-margin products. The German automaker announced its “Sportwagenschmiede ’35” strategy during a Capital Markets Day event, emphasizing a shift away from volume-driven growth toward enhancing brand value and profitability.
Michael Leiters, chairman of Porsche’s executive board, stated that the company’s goal is to reinforce its identity as the “Home of Sports Cars” by streamlining model variants, expanding into more profitable segments, and increasing revenue from highly customized vehicles. Under this approach, Porsche intends to reduce its break-even point to fewer than 200,000 units, based on a conservative forecast for its key market in China, where challenges remain.
Financial targets outlined in the strategy include a medium-term group operating return on sales of 10-15 percent and an automotive net cash flow margin between 9 and 12 percent. Long-term objectives aim for a 15 percent operating return on sales and a 12 percent net cash flow margin. Rather than focusing on increasing sales volumes, the company plans to emphasize quality and exclusivity.
Key elements of the plan include strengthening Porsche’s performance business through increased investment in Manthey Racing, where its stake will rise to 67 percent. The company also intends to broaden its offerings in performance kits and track experiences, particularly for limited-production models. Porsche is developing a mid-engined supercar platform intended to compete above the 911 in its lineup and is exploring an SUV in the D segment positioned above the Cayenne. The 911 model range will receive new emotive derivatives, reinforcing the brand’s core appeal. Porsche expects to introduce at least one significant new product annually through 2030.
The automaker maintains a diversified powertrain strategy that includes battery-electric, plug-in hybrid, and internal combustion engine (ICE) vehicles. The all-electric versions of the 718 Boxster and Cayman are planned for launch in 2028, alongside a new B-segment SUV equipped with both ICE and plug-in hybrid powertrains. This SUV is projected to substantially contribute to sales and profitability starting in 2029. Porsche is also investing in next-generation battery technologies as well as branding efforts for hybrid and ICE powertrains.
Cost reduction is a major component of the strategy, with plans to cut development expenses for future models by up to 20 percent, personnel costs in production by as much as 30 percent, and sales and distribution costs by 20 percent. Material costs for new vehicle projects are expected to decline by roughly 10 percent compared with prior projections. Porsche also plans to reduce its management team by 40 percent and its overall workforce by 25 percent in the medium term, aiming for a 30 percent reduction over the longer term.
The company will narrow its focus on core businesses, including divesting stakes in Rimac and Bugatti Rimac, selling its MHP consulting subsidiary, and winding down activities related to Cellforce Group, Porsche eBike Performance, and Cetitec. Collaboration with Audi is set to increase through shared use of Volkswagen Group platforms, such as the Premium Platform Electric and Premium Platform Combustion architectures, while maintaining brand-specific technologies.
Porsche projects group sales between 41 and 45 billion euros ($46-50 billion) in the medium term, with revenue growth expected to exceed volume growth and earnings anticipated to outpace revenue increases. Leiters described the new strategy as laying the foundation for making Porsche more efficient, productive, and profitable going forward.