Porsche to cut model derivatives by about 20% and raise top-model prices about 20%
In short
Porsche plans to cut the number of model derivatives by about 20% and aims to raise the average price of its top models by about 20% in the medium term under its "Sportwagenschmiede 35" strategy. The plan also includes a model line above the 911, 9,000 job cuts and a break-even point below 200,000 vehicles, Chinese outlets reported.
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Porsche plans to cut the number of model derivatives in its line-up by about 20% and aims to raise the average price of its top models by about 20% in the medium term, under a strategy called "Sportwagenschmiede 35". Jiemian said the plans were disclosed at a capital markets day on October 7, and Yicai dated the release to October 7 German time; 36Kr dated it October 8. [ 2 , 5 , 7 ]
The company said fewer derivatives would reduce portfolio complexity and expects average sales per derivative to rise by about 30% in the medium term. Jiemian reported that the average price of top models is expected to rise from about 270,000 euros this year to more than 330,000 euros by 2030, and that a 911 derivative is planned. Porsche also plans to strengthen the D and E segments, expand its personalisation business, develop a mid-engine supercar platform for a model line above the 911, and launch at least one brand-defining new product each year through 2030. Jiemian and Huxiu reported a D-segment SUV above the Cayenne and a goal of growing the Sonderwunsch custom business to six times its current size. [ 1 , 2 , 3 , 4 , 5 , 6 , 7 ]
"The current focus is on lowering costs and strengthening the company's financial robustness," CEO Michael Leiters said, according to Yicai. [ 5 ]
Yicai reported that Porsche aims to cut development costs for future model lines by up to 20%, production personnel costs by up to 30% and sales and distribution costs by 20% in the medium term, and to cut management positions by 40%. Porsche said it had agreed a "future package" with employee representatives that cuts 9,000 positions while guaranteeing core workforce jobs until 2035. Huxiu described the 9,000 cuts as running to 2035. [ 4 , 5 ]
Porsche has sold its stakes in Rimac and Bugatti Rimac, signed an agreement to sell consulting subsidiary MHP, and plans to close the Cellforce group and its e-bike business, Yicai reported. Porsche said it would keep combustion engines, plug-in hybrids and next-generation battery technology in parallel. [ 4 , 5 ]
Porsche expects to break even below 200,000 vehicles. Yicai reported medium-term targets of 41 billion to 45 billion euros in sales and a 10% to 15% return on sales. Jiemian reported that in the first half of 2026 revenue fell 5.1% to 17.229 billion euros and deliveries fell 16.5% to 122,300 from 146,400. [ 3 , 4 , 5 ]
Yicai said the electric 718 Boxster and Cayman are expected to enter production in 2028, while Jiemian put a new B-segment SUV, to be sold alongside the electric Macan, in 2028. Zhang Yichao (章一超), a partner at AlixPartners (艾睿铂), said focusing on top models when sales are weak can improve profitability, but Huxiu reported his view that the shift looks more like a passive response. [ 3 , 4 , 5 ]
Why it matters
Business outlets described the plan as a shift from volume growth towards higher-value cars and a smaller organisation, after Porsche's revenue and deliveries fell in the first half of 2026. Huxiu listed challenges including possible talent loss, pressure on sales and dealers from fewer entry derivatives, and dependence on wealthy customers' confidence.
Key facts
- Porsche plans to cut the number of model derivatives by about 20% to reduce portfolio complexity. [ 1 , 2 , 3 , 4 , 5 , 6 , 7 ]
- Porsche aims to raise the average price of its top models by about 20% in the medium term; Jiemian said the average is expected to rise from about 270,000 euros this year to more than 330,000 euros by 2030. [ 1 , 2 , 4 , 5 , 6 , 7 ]
- Porsche is developing a mid-engine supercar platform for a model line above the 911 and plans at least one brand-defining new product each year through 2030. [ 5 , 6 , 7 ]
- Porsche plans to cut 9,000 positions. [ 4 , 5 ]
- Porsche expects to break even at sales below 200,000 vehicles. [ 3 , 4 , 5 ]
- In the first half of 2026 Porsche's revenue fell 5.1% to 17.229 billion euros and deliveries fell 16.5% to 122,300. [ 3 , 4 ]
- Porsche has sold its stakes in Rimac and Bugatti Rimac and agreed to sell consulting subsidiary MHP. [ 4 , 5 ]
Confirmed by several sources
- Porsche plans to reduce the number of model derivatives by about 20%. [ 1 , 2 , 3 , 4 , 5 , 6 , 7 ]
- Porsche aims to raise the average price of its top models by about 20%. [ 1 , 2 , 4 , 5 , 6 , 7 ]
- Porsche plans a model positioned above the 911. [ 3 , 4 , 5 , 6 , 7 ]
- Porsche expects to break even at sales below 200,000 vehicles. [ 3 , 4 , 5 ]
- The plan includes cutting 9,000 positions. [ 4 , 5 ]
- Porsche has sold its Rimac and Bugatti Rimac stakes and is selling MHP. [ 4 , 5 ]
Still unclear
- The date the strategy was released. Jiemian and Yicai give October 7, 36Kr gives October 8, and Huxiu says the strategy was released in the first half of 2026.
- The D- and E-segment target. Jiemian and Huxiu describe a target share of 45% of the portfolio, while Yicai, CLS and 36Kr describe the share rising by about 45%.
- Timing of the new B-segment SUV. Jiemian and Huxiu say it is planned for 2028, while Yicai says it is expected to lift volume and profitability significantly in 2029.
- Timeframe of the 9,000 job cuts. Huxiu says the cuts run to 2035; Yicai links 2035 to a job guarantee for the core workforce.
- When the "Value over Volume" strategy was first set out. Jiemian says March of this year, Huxiu says March 2025.
- Prices of the planned supercar and large SUV. Jiemian estimates they may exceed the 1 million to 3 million yuan range of the Cayenne and 911; Porsche gave no prices in the documents.
What local media are saying
Timeline, local time
- October 8: 36Kr reports, citing Jiemian, that Porsche will cut model derivatives and raise top-model prices. [ 1 ]
- October 8: Jiemian publishes its report on the capital markets day disclosures. [ 2 ]
- October 8: Jiemian and Huxiu publish analysis of Porsche's strategy shift towards wealthy customers. [ 3 , 4 ]
- October 8: Yicai reports details of the "Sportwagenschmiede 35" strategy, including 9,000 job cuts. [ 5 ]
- October 8: CLS reports the plan to raise top-model prices by about 20%. [ 6 ]
- October 9: 36Kr relays the CLS report. [ 7 ]