Porsche Unveils 'Sportwagenschmiede '35' Strategy: Fewer Cars, Higher Prices

A Strategy Built Around 'Value Over Volume'

Porsche AG presented its new medium- and long-term strategy, named "Sportwagenschmiede '35," at a Capital Markets Day on October 7, 2026, according to the company's official newsroom. CEO Dr. Michael Leiters, Chairman of the Executive Board, said the plan aims to "further strengthen our unique sports car brand." The company describes "Value over Volume" as the guiding principle behind the strategy.

The Stuttgart-based automaker, majority-owned by Volkswagen, says it wants to offer the sportiest vehicles in every segment while shrinking its model lineup and raising the average volume sold per remaining variant, according to the Porsche Newsroom statement.

Fewer Models, More Exclusivity

Under the plan, Porsche intends to reduce its number of model variants by roughly 20%, while expecting average sales volume per variant to rise by about 30% in the medium term, the company said. Porsche also set a new break-even target of fewer than 200,000 vehicles sold per year, and said it expects the share of larger D- and E-segment vehicles (such as the Panamera and Cayenne/SUV lines) in its overall portfolio to increase by about 45% in the medium term, according to the official announcement.

On powertrains, Porsche said it will keep a three-pronged approach but with renewed emphasis on combustion-engine and plug-in hybrid models alongside next-generation battery technology, according to the newsroom release — a shift from the company's earlier heavier push toward fully electric models.

Financial Targets and Job Cuts

Porsche set a medium-term Group operating return on sales of 10–15%, rising to a long-term target of 15%, and a medium-term automotive net cash-flow margin of 9–12%, rising to 12% long term, the company said. Medium-term Group sales are targeted at €41–45 billion.

The strategy includes workforce reductions. According to the Porsche Newsroom statement, management positions are set to fall by 40% in the medium term, while the workforce in direct and indirect functions is to be reduced by 25% in the medium term, with a strategic target of 30%. Porsche said the reduction of 9,000 jobs is meant to be carried out in a socially responsible way, including a commitment to secure the jobs of its core workforce until 2035. Reuters, in a report carried by Investing.com, cited the same figure of 9,000 positions being eliminated by 2035, describing it as about a fifth of Porsche's total workforce.

Why Porsche Is Changing Course Now

The pivot follows a sharp profit decline. Porsche's operating margin fell to 1.1% last year, Reuters reported via Investing.com, far below the double-digit, Ferrari-style margins the company targeted when it went public in 2022. Global deliveries have dropped by nearly 10% since that 2022 listing, according to the same report, with full-year deliveries last year at 279,449 vehicles.

Reuters attributed part of the pressure to weak demand in China and tariff-related challenges in the United States, two markets central to Porsche's sales. The report also noted that Porsche's costly earlier push into electric vehicles is being partly reversed as the company reinvests in combustion and hybrid models. Parent company Volkswagen is undergoing a parallel restructuring that includes roughly 100,000 job cuts worldwide and the possible closure of up to four plants in Germany, Reuters reported, underlining the financial pressure across the group.