Porsche has announced a sweeping corporate strategy aimed at boosting profitability through cost cuts and a sharper focus on high-margin models, according to Sina Auto. The German sports car maker unveiled its 'Sportwagenschmiede '35' plan at a capital markets day held at its Weissach development center on October 7, targeting mid-term goals that pivot from sales volume to value creation per vehicle.
Leaner portfolio, higher prices
Under the strategy, Porsche plans to reduce the number of model derivatives by about 20% to simplify its lineup, with an expected average sales increase of roughly 30% per derivative in the medium term. The company will also shift its portfolio toward the higher-margin D and E segments, aiming to raise their share to about 45% of the product mix. Additionally, Porsche announced development of a mid-engine supercar platform to underpin a new flagship series positioned above the 911.
The product roadmap includes the all-electric 718 Boxster and Cayman, expected to contribute to sales in the first full production year of 2028, and a new B-segment SUV with internal combustion and plug-in hybrid (PHEV) powertrains, which will be sold alongside the electric Macan. Porsche also plans to increase the average selling price of its top models by about 20% and aims to grow its Sonderwunsch bespoke customization business to six times its current revenue.
Cost cuts and financial targets
On the organizational side, Porsche intends to cut management positions by 40% and reduce staff in direct and indirect functions by 25% (with a strategic goal of 30%) in the medium term. The company expects to lower development costs for future model series by up to 20%, production labor costs by up to 30%, and sales and distribution costs by 20%, through shorter development cycles, expanded in-house capacity, and modular development. Porsche Engineering and Porsche Digital will merge into Porsche Technology, aiming to leverage global R&D resources more efficiently.
As part of earlier restructuring, Porsche has agreed with employee representatives to cut 9,000 jobs while securing core staff positions until 2035. It has also completed the sale of its stakes in Rimac and Bugatti Rimac and signed an agreement to divest its MHP consulting subsidiary.
Financially, Porsche's mid-term targets include a group sales return of 10% to 15%, an automotive net cash flow margin of 9% to 12%, and group revenue of 41 billion to 45 billion euros (about $46.6 billion to $51.1 billion). For comparison, in the first half of 2026, the company reported a sales return of 7.8% on revenue of 17.2 billion euros. The long-term goal is a 15% sales return and a 12% net cash flow margin.
Notably, these targets are based on a conservative forecast for the Chinese market, with the break-even point set at global annual sales below 200,000 vehicles. Porsche's previously issued guidance for fiscal 2026 expects a group operating sales return of 5.5% to 7.5%, including one-off costs of about 800 million to 900 million euros and tariff costs of about 700 million euros, with revenue projected at 35 billion to 36 billion euros.
