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SearchThe German company presented “Sportwagenschmiede ’35,” a plan that prioritizes value per vehicle, expands its offering into higher-margin segments, and sets financial targets that remain goals, not guaranteed results.
Porsche presented its “Sportwagenschmiede ’35” strategy on October 7, 2026, seeking to strengthen its identity as a sports car manufacturer and increase profitability. The plan retains “Value over Volume” as its guiding principle: the company wants to grow value per vehicle rather than pursue sales volume.
The roadmap combines a differentiated offering in the sports luxury and upper premium segments with a stronger presence in D and E segments, which Porsche considers especially attractive because of their margin potential. The company also plans to expand its customization options in order to reinforce the exclusivity of its models.
In the medium term, Porsche aims to achieve revenue of between 41 and 45 billion euros, group operating return on sales of between 10% and 15%, and a net automotive division cash flow margin of 9% to 12%. In the long term, its targets are an operating return of 15% and an automotive net cash flow margin of 12%.
These are targets announced by the company, not guaranteed results. The published information does not specify the precise timeframe covered by the “medium term” horizon. Porsche also wants to lower its break-even point to fewer than 200,000 units, supported by a more agile organization and more efficient processes.
The strategy includes simplifying the model range and operations, focusing on the core business, and leveraging synergies between models. Porsche says it will continue investing in powertrain and battery technologies; the plan combines improvements in the efficiency of the existing portfolio with expansion into new segments.
In relation to employment, the company reported an agreement with employee representatives called “Future Package.” According to Porsche, it includes a reduction of 9,000 jobs, described by the company as socially responsible, and a commitment to safeguard the jobs of employees considered key through 2035. The announcement does not specify, in the information available, the timetable or distribution of those reductions.
The Chairman of the Executive Board, Michael Leiters, said that the current priority is to reduce costs and strengthen the company’s financial resilience. The strategy is framed in Germany and describes Porsche’s plans; its financial and organizational targets will depend on execution and business conditions.
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