Porsche returns to its roots to regain growth

Sportwagenschmiede ’35. The title alone makes the intentions of Porsche’s Strategic Plan clear: a ‘forge of sports cars’, as it is best translated into Italian. A return to its roots, to the brand, to motorsport, to excellence, but also to ‘Made in Germany’, as Michael Leiters, 55, chairman of Porsche’s board of directors since last January – with a long career at Ferrari and McLaren and already 13 years at the Stuttgart-based car manufacturer – explained to financial analysts. “We must rediscover the spirit of our origins and strive for the excellence of our founder and of products made in Germany.” A courageous and somewhat unconventional choice at a time when Berlin is going through one of the darkest periods in its history since the Second World War, in the midst of a political and social identity crisis and facing unprecedented economic and financial difficulties.

Leiters’ decision was driven by the need to turn Porsche’s fortunes round; as the figures show, the company is also going through the least successful period in its history. Without going too far back, in 2023 the German manufacturer, at its all-time peak, delivered over 320,000 cars to customers. This figure fell to 310,000 in 2024 and to 279,000 in 2025. In the first half of 2026, despite the boom in the 911 – the model with which the company is most closely identified (+19 per cent with over 30,000 deliveries) – sales fell by 16 per cent to just over 122,000 cars. In 2023, turnover stood at 40.5 billion; in 2025, it was 36.2.

This is precisely where Leiters’ 2035 Plan begins: a return to the company’s roots and identity – which is, after all, what the market is asking of Porsche. To reverse the trend towards a scale of operations that is alien to the company’s DNA, and to seek profitability through a number of key steps: lowering the break-even point to below 200,000 cars delivered; cutting production costs; raising the standard of the range and focusing on models that guarantee the company the highest margins; increasing the average selling price of products; creating a stronger link between motorsport activities and customisation; and exiting unprofitable activities. The aim is to achieve, in the medium term – indicatively by 2030 – an operating margin of between 10 and 15 per cent (which, once fully implemented, from 2035, will be 15 per cent) and an EBIT of between 9 and 12 per cent in 2030, which, once fully implemented, will be 12 per cent. In the medium term, the aim is to bring turnover into the range of between 41 and 45 billion.

The restructuring is not painless. “Our strategy will lay the foundations for making Porsche more efficient, productive and profitable. At present, the main focus is on reducing costs and strengthening the company’s financial position,” Leiters told analysts. The package of measures agreed with the trade unions provides for a reduction of 9,000 jobs (out of 23,000 employees) through voluntary redundancy schemes and without compulsory redundancies (a reduction of 25 per cent in the medium term and 30 per cent once fully implemented). Management will be reduced by 40 per cent and total labour costs by 10 per cent (30 per cent for production costs, 20 per cent for distribution and sales). Remuneration policies will be performance-related, with bonuses and incentives closely linked to individual performance. A share distribution scheme for employees is planned for 2028. Porsche has withdrawn from Rimac and Bugatti Rimac, has sold the consultancy firm MHPe, and will close Cellforce, Porsche eBike and Ceticec. Costs for supplies and materials will be cut by 10 per cent. The sales regions will be reduced from five to four (Europe, China, the Americas, Overseas). Group synergies with Audi and Volkswagen will be increased, partly to create economies of scale. “But using shared platforms, as we do in Bratislava, does not in any way mean compromising on product quality,” emphasises Leiters.

“Value rather than volume,” the chief executive stated bluntly. And that value is to be found in a new product philosophy, which ultimately marks a return to the company’s core. Exclusivity and the very top of the range. “We aim to become the best available on the market in the segments where we operate,” said Leiters. With a clear focus: the D and E segments, supercars and SUVs, with a reduction in model variants (to a maximum of 20) but extensive customisation options. Up to 2030, the plan is to launch one new model per year, and the plans include a two-door model positioned above the 911 in the range and an SUV positioned above the Cayenne – Porsche’s two flagship models. This new strategy will result in an average price increase of 20 per cent across the entire range. On 15 October, Mission S will be unveiled – a supercar concept designed to pioneer the hypercar segment.