Porsche is resolutely continuing its comprehensive realignment amidst a slower-than-anticipated pace of electric vehicle (EV) adoption worldwide. Though EV sales continue to grow, that growth wasn’t as fast as expected. Thus, Porsche’s Executive Board and Supervisory Board have decided on significant adjustments to the product portfolio in the medium and long-term period.
“Today we have set the final steps in the realignment of our product strategy. We are currently experiencing massive changes within the automotive environment. That’s why we’re realigning Porsche across the board,” says CEO Oliver Blume. “In doing so, we want to meet new market realities and changing customer demands – with fantastic products for our customers and robust financial results for our investors.”
Due to market conditions, the new SUV series above the Cayenne, which was previously planned to be fully electric, will initially be offered exclusively as a combustion engine and plug-in hybrid at market launch. In addition, current models such as the Panamera and the Cayenne will be available with combustion engines and plug-in hybrids well into the 2030s. New generations of successor models have been added to the Cycle Plan for these vehicle models.
In return, due to the delayed ramp-up of electric mobility, the market launch of certain all-electric vehicle models is planned to take place at a later date. In particular, the development of the planned new platform for electric vehicles in the 2030s is to be rescheduled. The platform is to be technologically redesigned in coordination with other brands within the Volkswagen Group.
At the same time, Porsche expects considerable additional burdens due to the changed external framework conditions. These include US import tariffs and Porsche’s sales decline in the Chinese luxury market. Porsche is now aiming for a medium-term operating return on sales in the double-digit range, with good business development of up to 15%. This corresponds to the lower end of the previous range.
The rescheduling of the new platform for electric vehicles will necessitate depreciation and provisions, which are expected to burden the operating profit in the 2025 financial year by up to 1.8 billion euros. The current forecast for the 2025 financial year published by Porsche does not take these burdens into account. Against this background, the company has decided to adjust the forecast for the 2025 financial year. The expectations for the 2025 financial year are now as follows:
- A sales revenue between 37 and 38 billion euros (previous forecast: 37 to 38 billion euros),
- A slightly positive return on sales up to 2 % (previous forecast: 5 to 7%),
- An automotive net cash flow margin between 3 and 5 % (previous forecast: 3 to 5%),
- An automotive EBITDA margin between 10.5 and 12.5 % (previous forecast: 14.5 to 16.5%), and
- An automotive BEV share in Automotive between 20 and 22 % (previous forecast: 20 to 22%).
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