Porsche prepares tough cost-cutting program after profits fall to 1.1%

German automaker Porsche has unveiled Strategy 2035, a radical change program designed to improve the company’s financial situation. Last year, the brand’s profits collapsed to a record low of 1.1%, and new CEO Michael Leiters promised tough measures for investors, Carscoops reports.

The strategy is based on three pillars: brand and customers, products and technology, and company and operations. The main goal is sustainable profitability and a return to roots. Porsche intends to focus on sports cars, handling and exclusivity, abandoning the pursuit of sales volumes.

There will be major cuts to the model lineup. Leiters admitted that it has become too complex, so the number of execution options will be reduced. The Taycan station wagons have already been discontinued in the US. At the same time, Porsche confirms its commitment to three types of power plants: gasoline, hybrid and electric.

The key point is the future of the 911. There will be no all-electric version; instead, they will rely on hybrid technologies that have already appeared on the GTS and Turbo. The main hopes in the electric vehicle segment lie with the Cayenne Electric.

In addition, the company announced job cuts and greater use of VW Group platforms. Chairman of the supervisory board Dr. Wolfgang Porsche warned that the measures would be “very noticeable and in some cases inconvenient” but necessary to return to the path of success.

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