Porsche Changes Direction: The 2035 Plan That Must Save the Brand

Faced with declining profitability and a rapidly changing automotive market, Porsche unveils Strategy 2035, an ambitious plan.

For years, Porsche seemed untouchable. The German manufacturer boasted some of the highest margins in the entire automotive industry, thanks to the success of the 911, Cayenne, and Macan. But the context has changed profoundly. With slowing sales in China, U.S. tariffs, electrification costs being higher than expected, and increasingly aggressive competition, the Stuttgart brand has seen its financial performance decline. To regain its historic profitability, its president Michael Leiters has unveiled Strategy 2035, a transformation plan that redefines Porsche’s priorities.

The message is clear: Porsche no longer wants to sell more, but rather to sell better. The manufacturer is stepping away from the race for volume to focus on value creation. The strategy is based on three pillars: strengthening the brand image, simplifying the range, and improving industrial efficiency. Several low-margin variants are expected to disappear in order to focus investments on the most emblematic and profitable models.

The Magic of Porsche Still Works

This new roadmap also marks a significant evolution regarding powertrains. While many premium manufacturers were betting on a rapid transition to fully electric vehicles, Porsche is now adopting a more pragmatic approach. The Porsche 911 will retain a thermal engine combined with high-performance hybrid technologies. Electric models will continue to be developed, including the upcoming electric Cayenne, but they will coexist sustainably with hybrid and thermal versions to meet the very different expectations of global markets.

To finance this transformation, Porsche is also launching a large cost-reduction program. Several thousand job cuts are planned by 2035, in addition to the departures already announced in recent months. The goal is to sustainably lower the breakeven point in order to better withstand economic fluctuations and uncertainties in the global automotive market.

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Beyond the savings, Strategy 2035 symbolizes above all a return to fundamentals. Porsche aims to become once again a manufacturer of exclusive sports cars, capable of preserving its prestige without yielding to the logic of volume. This strategy recalls that, in the ultra-high-end segment, rarity and desirability often remain the best drivers of profitability. A bold bet, but undoubtedly essential for Porsche to remain one of the most profitable and desirable brands in the automotive industry.

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