By Dominic Chopping
Porsche plans to make its cars even more exclusive while continuing to cut costs and streamline its operations as it targets higher profitability in coming years.
The German sports-car maker said ahead of an investor event Wednesday that it will offer more higher-end vehicles and aim to increase the average selling price of these models by about 20% to 330,000 euros ($371,596).
By 2030, it plans to launch at least one "brand-defining" new product every year, it said.
"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," Chief Executive Michael Leiters said as he outlined the company's strategy to 2035.
The plans elaborate on broader actions outlined earlier this year that include investing in new gas-powered and hybrid models, targeting profitability over volume, and reducing the number of model variants.
Various departments have been streamlined and leadership reshuffled as Porsche works through previously announced plans to cut 5,000 jobs on top of 3,900 that were earlier earmarked to increase efficiencies and elevate its competitiveness.
Less complexity, fewer sales regions, increasing use of common parts and process efficiencies are expected to see personnel costs in production fall by up to 30% in the medium term, while sales and distribution costs and development costs are both expected to fall by 20% and materials costs by 10%, it said.
By becoming leaner and focusing on profitability, Porsche said Wednesday that it expects to significantly lower its break-even point to lower than 200,000 cars. It delivered just under 280,000 cars in 2025.
New all-electric sports-car models will boost sales in 2028, while a new SUV offered with a gas-powered engine and plug-in hybrid powertrain will support sales and profits in 2029.
These will be followed by further high-margin larger vehicles as Porsche targets a 45% portfolio share of the more profitable models.
It also confirmed the development of a new mid-engined sports car to sit above the 911.
Leiters is working to simplify the automaker and boost profit by realigning the strategy as the German auto industry recalibrates to intensifying market headwinds. The key Chinese car market continues to deteriorate, domestic manufacturing costs remain elevated and U.S. tariffs are hitting profitability.
The company has already begun by shedding non-core assets, selling its stakes in hypercar joint venture Bugatti Rimac and electric-vehicle maker Rimac Group for 1 billion euros, and has also agreed to sell its management and IT consultancy business MHP.
The disposals come on top of moves to shut down its battery-tech developer Cellforce Group, e-bike electric drive systems developer Porsche eBike Performance and Cetitec, a company that produces specialized software for data communications.
"Our strategy will lay the groundwork to make Porsche significantly more efficient, productive and profitable in three phases," Leiters said. "At the moment, the main focus is on reducing costs and making the company more financially robust."
In the medium term, the company is aiming for a group operating return on sales of 10% to 15% and an automotive net cash flow margin of 9% to 12%. That would mark a sharp increase from the 1.1% and 4.7% it reported in 2025, respectively.
It targets sales of between 41 billion and 45 billion euros in the medium term, versus just over 36 billion euros in 2025.
The automaker also announced a long-term strategic target of 15% group operating return on sales and 12% automotive net cash flow margin.