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Porsche Shifts to Profit-First Strategy 2035 and Rules Out a Fully Electric 911

The plan seeks to restore margins through variant cuts, deeper Volkswagen platform sharing, with a new round of workforce savings ahead of an October 7 capital markets day.

Overview

  • At its annual general meeting on June 23, CEO Michael Leiters unveiled Strategy 2035, confirmed the 911 will use a dedicated performance hybrid rather than become fully electric, and gave 2026 revenue and margin targets to reassure investors.
  • The strategy will cut model variants and simplify the portfolio, with Porsche already dropping some Taycan body styles in the U.S. as an early step to reduce complexity and costs.
  • Porsche plans greater use of Volkswagen Group modular platforms and deeper cooperation with Audi to lower development and production expenses across its lineup.
  • Management is negotiating a second cost-cutting programme with the works council that it wants finalised before factory holidays in July, and reporting suggests additional job losses in the low‑thousands are under consideration.
  • Porsche blamed a steep earnings shock in 2025—an operating margin near 1% and a heavy sales fall in China—for forcing the reset, has confirmed plans to sell stakes in Bugatti and Rimac this year, and will present full turnaround details at the October 7 capital markets day.