Electric vehicles are no longer a priority in Porsche’s strategy

Porsche has unveiled its strategic plan aimed at restoring it to its best financial form. This plan no longer emphasizes electric vehicles, focusing instead on larger, more powerful, and expensive internal combustion engine models.

Nine months after taking charge of Porsche, Michael Leiters has presented the company’s roadmap until 2035. This path is driven by the goal of achieving very high profit margins again. Aside from finalizing the launch of the 718 Boxster and Cayman next year, there is no mention of electric vehicles at all.

Porsche’s unveiled plan has one main goal: to return to the highest levels of profitability. Severely hit in recent months, the group’s champion of margins fell below a 10% profitability threshold and was even overtaken by Skoda in some areas. The goal is clear: to return above 15%.

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Cost reduction

To achieve this, there are obviously purely operational measures: reducing headcount by 9,000 through voluntary exits without replacements, merging Porsche Engineering and Porsche Digital into Porsche Technologies, abandoning the Cellforce battery division and electric bicycles, finalizing the sale of Bugatti to Rimac, and simplifying the product lineup…

Upgrading the Lineup

Beyond cost reductions, there is also an increase in revenue. The goal is to raise the average transaction price of higher-end models by 20%. To counter China’s ambitions in this segment, Porsche’s strategy is to enhance its exclusivity.

This will particularly involve expanding customization programs. Following the introduction this summer of the 911 Slant Nose built for a wealthy client, Porsche plans to develop its Sonderwunsch program further, following Ferrari’s example. Competition also plays a significant role in protecting its identity, with participation in the Manthey Racing team to be increased to 67%.

In terms of products alone, the 718 Boxster/718 Cayman duo set to launch next year is the only electric vehicle mentioned. On the contrary, investments in internal combustion and hybrid engines will be increased. Porsche plans to introduce a new gasoline-powered Macan by 2028. It is also considering expanding its lineup upward: a larger SUV above the Cayenne, and especially a sports model with a mid-engine layout that will sit above the 911. Electric-only models are not part of these plans.

The Mission S concept car, which previews this small supercar, will be unveiled on October 15. However, it won’t appear at the Paris Motor Show, as Porsche is among the brands that skipped the event despite significant recent developments.