Porsche's 2035 plan: fewer cars, a pricier range, 9,000 job cuts to fix margins

What was changed

In October 2026 Porsche unveiled 'Sportwagenschmiede 35' — a sports-car forge, in the spirit of founder Ferry Porsche — a strategic plan of returning to roots, motorsport and 'Made in Germany'. Chairman Michael Leiters, 55, ex-Ferrari and McLaren with 13 years at Stuttgart, told analysts the company must 'rediscover the spirit of our origins and strive for the excellence of our founder'.

The need was stark. Deliveries fell from over 320,000 cars in 2023 to 310,000 in 2024 and 279,000 in 2025; first-half 2026 sales dropped 16% to just over 122,000 despite a 19% boom in the 911 (over 30,000 deliveries). Turnover slid from €40.5 billion in 2023 to €36.2 billion in 2025 — the least successful period in Porsche's history.

The plan inverts the scale logic: lower the break-even point to below 200,000 cars; cut production costs; raise range quality and focus on the highest-margin models; raise average selling prices about 20%; bind motorsport closer to customisation; and exit unprofitable activities. Production falls below 200,000 cars and 9,000 jobs go under a package agreed with the trade unions.

Targets: an operating margin of 10–15% by 2030 (15% once fully implemented by 2035), EBIT of 9–12% in 2030, and turnover of €41–45 billion in the medium term — with one new model launch per year until 2030, covering all engine types.

Why it worked

Chasing volume had pulled Porsche away from its identity; the market was asking for the brand, not more cars.

A sub-200,000 break-even makes profitability independent of cyclical demand for SUVs and EVs.

Price rises of about 20% lean on the badge: scarcity and excellence justify the premium.

One launch per year focuses engineering money on the highest-margin models instead of spreading it.

The 911's 19% growth while the rest fell 16% is internal evidence that the roots bet already works.

What can be applied

When scale becomes alien to your DNA, profitability comes from narrowing the field: fewer launches, higher prices, lower break-even — and a brand promise you can point to on the product.

Aftermath

The restructuring package was agreed with the trade unions, covering the 9,000 job reductions; the plan runs to 2030 with full implementation by 2035.