Porsche braces for lower sales era, seeks lifeline from luxury

According to Business Recorder, Porsche told investors on Wednesday that it is preparing for sales to stay lower for a long period, while presenting a turnaround plan. The carmaker now aims for a break-even volume below 200,000 units, against 279,449 deliveries last year. CEO Michael Leiters will use a capital markets day at the Weissach development centre to stress a focus on high-end models such as the 911 and luxury SUVs.

Global deliveries have fallen by almost 10 per cent since the 2022 listing, with weak demand in China and US tariff pressures hitting two key markets. Profit margin collapsed to 1.1 per cent last year, far below the double-digit level targeted when the company went public under Oliver Blume, Leiters' predecessor.

Porsche is also cutting 9,000 jobs by 2035, shrinking headcount by a fifth, and returning to combustion-engine models after costly EV missteps. Leiters plans to lower development costs by sharing more platforms with Audi. He said the immediate priority is cutting costs and strengthening the company's finances.