STUTTGART / LONDON (IT BOLTWISE) – Porsche is facing a profound crisis as the company’s profits have collapsed dramatically. The strategic reorientation towards combustion engines and the delay in electric vehicles have significant financial implications. Despite the challenges, management is optimistic that the situation will improve from 2026.
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Porsche, once a prime example of success within the Volkswagen Group, is currently facing an unprecedented crisis. The company’s profits fell by 95.9 percent in the first three quarters of the year, resulting in earnings after taxes of just 114 million euros. The third quarter was particularly dramatic, when Porsche was in the red and recorded negative earnings before interest and taxes of 966 million euros.
The main reason for this slump lies in the company’s strategic realignment. Under the leadership of Porsche’s current boss, Oliver Blume, Porsche has scaled back its ambitious electric goals and put planned battery production on hold. Instead, the company is relying on a comeback of combustion engines, which entails high costs. For the 2025 financial year, Porsche expects special costs of around 3.1 billion euros.
The operating profit in the first nine months was only 40 million euros, which corresponds to a decline of 99 percent compared to the previous year. Sales also fell by six percent to just under 26.9 billion euros. CFO Jochen Breckner emphasizes that these figures reflect the burdens of the strategic realignment. However, he is confident that Porsche will overcome the low point this year and noticeably improve from 2026.
Another problem area is the sales market, particularly in China and the USA. In China, one of Porsche’s most important markets, sales fell by 26 percent. The company is also struggling with challenges in the US, including the slow adoption of electric vehicles and the impact of US tariffs. These factors contribute to Porsche facing a sales decline for the second year in a row.
In view of these challenges, Porsche is planning a comprehensive savings program. By 2029, around 1,900 jobs are to be cut in a socially acceptable manner in the Stuttgart region. In addition, the contracts of around 2,000 temporary employees are expiring. A further savings program is being planned, with negotiations already underway with the works council. The aim is to streamline the company’s structures and respond to changing market conditions.
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