Porsche will close several divisions to stay afloat

German Porsche AG, against the backdrop of recorded losses, is carrying out a large-scale business restructuring, as a result of which several non-core divisions will be closed. Battery research center Cellforce Group, electric bicycle manufacturer Porsche eBike Performance, and software company Cetitec will soon cease to exist.

At the end of 2025, the Porsche group’s revenue decreased to 36.27 billion euros compared to the previous 40.08 billion euros. At the same time, the company’s operating profit collapsed to 413 million euros, although a year earlier the figure was 5.64 billion euros.

The main factors were large-scale unplanned expenses (2.4 billion euros for a change in strategy), logistical difficulties and fierce competition in the sports car market, especially in the electric vehicle segment.

Porsche’s problems also caused damage to the parent concern Volkswagen, which lost about $6 billion. Therefore, the company is now forced to carry out large-scale restructuring, revising the principles of doing business.

Among the emergency measures, in addition to the closure of non-core divisions, is the sale of stakes in Bugatti Rimac and Rimac Group to a consortium in which the American investment company HOF Capital has a major stake.

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