Porsche AG outlined an ambitious strategic roadmap today aimed at strengthening its position as one of the world’s most desirable sports car manufacturers through 2035. The plan, unveiled at a Capital Markets Day event at the company’s Weissach Development Centre, prioritises exclusivity, higher profit margins, and operational efficiency over raw sales volume.
The strategy, dubbed “Sportwagenschmiede ’35” (Sports Car Forge ’35), centres on a principle Porsche has long championed: “Value over Volume.” Under this approach, **the company aims to reduce its break-even point to fewer than 200,000 units annually** while simultaneously boosting profitability and cash generation. The financial targets are ambitious: **a medium-term group operating return on sales of 10 to 15 per cent** and an automotive net cash flow margin of 9 to 12 per cent, with even higher long-term goals of 15 per cent and 12 per cent respectively.
Expanding Into Premium Segments
**Porsche plans significant expansion into high-margin D and E vehicle segments**, positioning itself to capture a larger share of the luxury market. The company intends to increase the share of D and E models in its overall portfolio by approximately 45 per cent by targeting wealthier customers seeking more exclusive offerings.
Among the most eye-catching announcements is **a new mid-engined super sports car platform currently in development**, which will sit above the iconic 911 and represent Porsche’s most ambitious model offering. The company also plans to introduce an all-electric 718 Boxster and Cayman in 2028, followed by a new entry-level SUV in the B-segment featuring petrol and plug-in hybrid engines.
Product launches will accelerate, with at least one brand-defining new vehicle expected annually through 2030. This expanded portfolio aims to boost exclusivity and desirability while supporting price increases; Porsche targets raising the average selling price of top-of-the-range models by approximately 20 per cent in the medium term.
Customisation and Brand Prestige
To enhance exclusivity, Porsche is significantly expanding its customisation offerings through its Sonderwunsch (special request) programme, with plans to increase sales from this segment sixfold. The company is also deepening its partnership with Manthey Racing, increasing its stake to 67 per cent to offer enhanced performance experiences and exclusive track-focused vehicles.
Operational Restructuring
To support these ambitions, Porsche is implementing sweeping organisational changes. The company will merge its Porsche Engineering and Porsche Digital subsidiaries into Porsche Technologies to streamline development and reduce costs. Management positions will be cut by 40 per cent, and the overall workforce will shrink by 25 per cent in the medium term, with a strategic target of 30 per cent reductions.
As part of a “Future Package” agreement with employee representatives, 9,000 jobs will be eliminated, though core workforce positions are guaranteed through 2035. The company has already begun divesting non-core assets, including stakes in Rimac and the planned closure of Cellforce Group and Porsche eBike Performance.
Cost Reduction Across Operations
Development costs for new model lines are targeted to drop by up to 20 per cent through shorter development cycles and modular processes. Production personnel costs will fall by up to 30 per cent, while sales and distribution costs will decline by 20 per cent through more efficient organisational structures and reduced regional divisions from five to four.
Dr Michael Leiters, Chairman of Porsche’s Executive Board, emphasised the company’s focus on “craftsmanship, down-to-earth thinking and entrepreneurial, business-focused action.” The strategy reflects Porsche’s determination to maintain its status as a premier luxury sports car manufacturer while adapting to shifting market dynamics and operational pressures.
