Porsche AG has presented a nine-year strategic plan, branded Sportwagenschmiede ’35, at its Capital Markets Day at the Weissach Development Centre. The plan sets a long-term operating return on sales target of 15 per cent and an Automotive net cash flow margin of 12 per cent, with medium-term ambitions of 10 to 15 per cent and 9 to 12 per cent respectively. Group revenue is targeted at 41 to 45 billion euros in the medium term.
The centrepiece of the financial logic is a structural reduction in the break-even point to below 200,000 vehicles sold, achieved through a combination of workforce reduction, lower development costs and a shift toward higher-margin model segments. The company acknowledged that reaching the top end of its targets depends in part on an improved macroeconomic, geopolitical and regulatory environment.
Cost and workforce restructuring
Porsche has already enacted several disposals as part of its focus on core operations, including the sale of its stake in Rimac and Bugatti Rimac, an agreement to sell the MHP consulting subsidiary, and the planned closure of Cellforce Group, Porsche eBike Performance and Cetitec. A workforce reduction of 9,000 jobs has been agreed with employee representatives, alongside a job security commitment for the core workforce through 2035.
The company is targeting a 40 per cent reduction in management positions, a 25 to 30 per cent reduction in the overall workforce across direct and indirect functions, and a 30 per cent cut in production personnel costs. Development costs for future model lines are to fall by up to 20 per cent, supported by shorter development cycles and greater use of modular processes. Sales and distribution costs are earmarked for a 20 per cent reduction, partly through consolidating sales regions from five to four. Porsche Engineering and Porsche Digital will be merged into a single entity, Porsche Technologies.
Portfolio shift and new products
The product strategy is equally significant. Porsche is reducing model variants by around 20 per cent while increasing its presence in the higher-margin D and E segments, with a target of growing their share of the overall portfolio by approximately 45 per cent. The company confirmed the development of a mid-engined super sports car platform intended to sit above the 911, and is exploring a D-segment SUV positioned above the Cayenne. The electric 718 Boxster and Cayman are expected to contribute to sales from their first full production year in 2028, alongside a new B-segment SUV that will sit alongside the existing electric Macan.
The company also announced an increase in its stake in Manthey Racing GmbH to 67 per cent, and plans to scale its Sonderwunsch bespoke programme sixfold in revenue terms, framing individualisation as a structural margin lever rather than a boutique add-on. Average selling prices on top-of-range models are targeted to rise by around 20 per cent in the medium term.
Market and investor context
The Sportwagenschmiede ’35 announcement arrives at a difficult moment for premium automotive manufacturers broadly. Porsche’s own sales volumes have come under pressure, particularly in China, a market the company explicitly cited as a conservative planning assumption in its break-even modelling. Wider luxury auto peers have also been managing the cost and timing risks of electric vehicle transition alongside softening demand in key Asian markets.
The shift toward fewer, higher-priced and more personalised models is a defensible response to those pressures, drawing Porsche closer to the operating logic of ultra-luxury manufacturers such as Ferrari, which has long prioritised revenue-per-unit over volume. The risk is execution: restructuring 9,000 roles, cutting development timelines and simultaneously launching multiple new model lines in premium segments is a high-complexity programme. Investors will be watching whether the profitability targets hold if the China recovery is slower than even the conservative base case allows.
Chief executive Dr Michael Leiters framed the plan in operational terms: “The ultimate goal is to further strengthen our unique sports car brand across all model lines and with new, highly desirable models in particularly high-margin segments.”
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