- Porsche unveils Strategy 2035 focused on profit, not than sales volume.
- New CEO vows fewer variants, leaner operations, more sports car DNA.
- 911 won’t go electric, but will instead make more use of hybrid tech.
Porsche is promising a return to form, but it’s asking investors for something that’s currently in short supply. Patience. At the company’s annual general meeting this week, new CEO Michael Leiters outlined the foundations of Strategy 2035, a sweeping turnaround plan designed to restore profit margins that cratered to just 1.1 percent last year.
Leiters, who became CEO on January 1, insists Porsche knows exactly what needs fixing. The strategy rests on three pillars that sound simple enough. Brand and Customer, Products and Technology, and Company and Operations. The goal is sustainable profitability, greater resilience and a company that spends less time managing complexity and more time building desirable sports cars.
Back To What Made Porsche, Porsche
The first pillar is arguably the easiest sell. Porsche says it’s doubling down on what made the brand famous in the first place. Sports cars, driving engagement, performance and exclusivity. Leiters says Porsche isn’t chasing volume for volume’s sake. The idea is that customers should buy a Porsche because they genuinely want one, not because it happened to be available in the right lease deal.
Related: Porsche Killed A Body Style It Spent Years Convincing America To Buy
Porsche also wants to capitalize on the cachet of its location. “We must reinvent ‘Made in Germany’ and prove ourselves,” Leiter said. “Ultimately, that will determine whether we are successful.”
The second pillar focuses on products, which Leiters calls the most important lever for improving Porsche’s fortunes. He admits the lineup has become too complicated and says the company will reduce the number of variants. In the United States, Porsche has already dropped both Taycan wagons. The company also reaffirmed its commitment to combustion, hybrid and electric powertrains.
911 Not Going Electric
Naturally, the 911 is central to Porsche’s plans. Leiters says there will be no fully electric version. Instead, the sports car’s future includes the new performance hybrid system first seen on the GTS and since rolled out to the Turbo, which he described as a crucial ingredient for keeping the icon alive. Meanwhile, Porsche is pinning significant hopes on the Cayenne Electric (below), which it believes can help establish genuine EV heritage for the brand. No mention of the almost-ready electric Boxster and Cayman, though.
Cutting Deeper Than Announced
The final pillar tackles the company itself. Porsche promises more platform sharing with the VW Group, greater efficiency and fewer layers of complexity. It’s also discussing workforce reductions and other cost-cutting measures. Leiters made it clear that the streamlining already announced won’t be enough on its own. Sounds like a there’s a ton of belt-tightening to come.
“We are focusing on discipline, clear priorities and the systematic implementation of the necessary measures,” Chairman of the Supervisory Board Dr Wolfgang Porsche said, echoing Leiters’ comments. “These will be highly noticeable and, in some cases, uncomfortable. However, they are necessary to get us back on the road to success.”
