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Porsche braces for lower sales era, seeks lifeline from luxury
Reuters • • business
Key Points:
- Porsche's global deliveries have dropped nearly 10% since its 2022 listing, impacted by declining demand in China and US tariffs affecting key markets.
- CEO Michael Leiters plans to focus on high-end sports cars and aims to increase selling prices for Porsche's top 10,000 vehicles to improve profitability.
- The company targets a long-term operating margin of 15%, with a medium-term goal of 10-15%, after profits fell to 1.1% last year from previous highs in the high teens.
- Porsche is implementing a major restructuring, including cutting 9,000 jobs by 2035 and reducing management roles by 40%, while seeking cost savings through platform-sharing with Audi.
- Investors reacted positively to the new strategy, lifting Porsche shares by 3.2%, though achieving margin targets depends on further restructuring or improved market conditions.
