If you were CEO of Porsche AG how would you fix it?
If you were CEO of Porsche AG how would you fix it?
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RDMcG

Original Poster:

20,723 posts

234 months

Saturday
quotequote all
Serious question, not just a dump on the mistakes, EV strategy and the like:

This seems to me to be a pivotal time for the company:

Challenges are:

-Chinese market collapse.

-Miscue on EVs.

-Parent company trying to cut product lines in half and cut 100k jobs.

-Margins drops from industry-leading to almost zero.

-Lots of new competitive product from China, Korea and Japan

-Increasing pressure from US to build product there rather than import.

-labour costs are much higher than foreign competition.

-China making inroads into European markets.


Congratulations! you are the new CEO and the stock is already in the dumpster.

Investors are screaming.

Now, you actually have to do something, initially in the next 90 days and then come up with a 12 month plan.

What practical actions do you take??


RDMcG

Original Poster:

20,723 posts

234 months

Saturday
quotequote all
By the way I would divide this into emergency stuff and long term:

(1) Major staff cuts now, protect engineering/development. If necessary take a strike.

(2 )Seek a software partner for new product and learn from. Ferrari mess.

(3) Merge Taycan/Panamera and Cayenne/Macan

(4) Careful look at AI for production and development. Dangerous stuff as Ford found out, but critical as the competition from China is all over it Need to slash development times.

(5) 911 is a cash cow but 992 is getting long in the tooth. Hard review on successor platform and whether it can regain its traditional car of the year, Ring lap times etc. Do it at a lower cost.

(6) Key decision on market position- do you go upmarket and play the Ferrari game in which case you shed the volume products. If you do you have enough left to support that company?

(7) Start to pray.

Edited by RDMcG on Saturday 11th July 19:32


Edited by RDMcG on Saturday 11th July 19:32

Jeremy-75qq8

1,712 posts

119 months

Saturday
quotequote all
How do you make your brand and products stand out and justify a premium in a world of electric motors and batteries which are basically commodities.

If Evian can brand water Porsche can brand cars.

The key issue is the future is devoid of emotion and they all perform well ( in a straight line and lest fasecis as a turbo s owner how often can I use any of the engineering I have paid for ). So low cost must be a major feature.

Clad-Hach

551 posts

15 months

Saturday
quotequote all
If someone walks into a dealers and asks to buy a GT product sell them one...take advantage of a model people want to buy.

Value for money on cooking models...on a £100,000 car no way should you have to spec options that come standard on a Kia.

There needs to be an entry level car...get a new ICE Cayman and Boxster back in the range pronto.

And stop ripping us off with the cost of servicing...that's why owners use independents instead of dealers, attract them back in house.

Terminator X

20,081 posts

231 months

Saturday
quotequote all
They seem to have cracked it no, release umpteen versions of their most expensive 911 wink

TX.

Furbo

3,869 posts

59 months

Saturday
quotequote all
RDMcG said:
Serious question, not just a dump on the mistakes, EV strategy and the like:

This seems to me to be a pivotal time for the company:

Challenges are:

-Chinese market collapse.

-Miscue on EVs.

-Parent company trying to cut product lines in half and cut 100k jobs.

-Margins drops from industry-leading to almost zero.

-Lots of new competitive product from China, Korea and Japan

-Increasing pressure from US to build product there rather than import.

-labour costs are much higher than foreign competition.

-China making inroads into European markets.


Congratulations! you are the new CEO and the stock is already in the dumpster.

Investors are screaming.

Now, you actually have to do something, initially in the next 90 days and then come up with a 12 month plan.

What practical actions do you take??
I think Porsche is a spent force.

They've been dining out on their history for nearly thirty years, and trying to become all things to all men by making all shapes and sizes of car with their badge on. I am only slightly surprised they haven't launched a light commercial vehicle.

It has diluted the desirability. Seeing new Porsche now barely registers.

That, coupled with the fact that people haven't got so much money now and I am struggling to think what a comeback looks like. It won't look like the past thirty years, that is for sure.










Good Plan Ted

2,343 posts

258 months

Saturday
quotequote all
As a porker owner who’s tried a few Chinese vehicles mainly SUV’s I’m not going to pay double for a basic German anymore.

dxg

10,505 posts

287 months

Saturday
quotequote all
As much as I really hate to say this, but a small hybrid SUV. Base it off one of the Cupras.

VAG really need a good hybrid system. Stick that in it. Buy it from Toyota or Volvo/Geely if you have to.

Then rub some Porsche magic over the suspension setup to somehow make it at least feel sporty. Then wrap it in Porsche marketing to make it seem appealing. Then make it affordable.

It's the same trick that they played with the Cayenne, just at a lower market segment. They'll have to accept lower margins and get the revenue through volume.

The 911 is required as a halo, but they'll never sell enough to keep the company alive.

Their biggest problem is sunk cost. They're just going to have to take some massive write-downs - economically and reputationally.

Axe the Boxster and Cayman - both ICE and the new EV. Maybe partner / buy-out the Caterham/Yamaha EV to get a small, cheap(ish) and fun EV.

Axe the Cayenne.

Axe the Taycan.

Maybe hang onto the EV Macan to meet their manufacturer CO2 requirements. Axe the ICE Macan. Why do they have two Macans anyway...

Dog Biscuit

2,299 posts

24 months

Saturday
quotequote all
Taking this seriously as a Porsche turnaround exercise, my answer is that I would not start by announcing another grand EV strategy.

Porsche's 2025 operating return on sales fell from 14.1% to 1.1%, with operating profit of only €413 million; China sales fell 26% in 2025 and the shares have roughly halved since the 2022 listing. Those are turnaround numbers, not a minor cyclical wobble.

My first 90 days
1. Stop pretending volume is the objective

My first instruction would be:

We are not trying to sell 300,000 Porsches. We are trying to make exceptional returns selling Porsches.

I would immediately review profitability model by model, derivative by derivative and market by market.

Anything that is low margin, low volume and adds disproportionate engineering or homologation complexity gets a death sentence.

Not in five years. Now.

The wider VW Group is already looking at cutting its model offering by up to half and reducing production capacity, against the backdrop of possible cuts of up to 100,000 jobs. Porsche cannot operate as though that restructuring is somebody else's problem.

2. Put the EV ideology in the bin

Not EVs.

EV ideology.

I would formally state that Porsche is powertrain agnostic.

Customer demand decides the mix.

911 stays combustion for as long as legally and economically possible.

Cayenne gets ICE, hybrid and EV where commercially viable.

Panamera stays ICE/PHEV.

Macan EV continues, but its economics and pricing get torn apart.

Boxster/Cayman would be reviewed immediately. If making them exclusively electric destroys demand or brand desirability, I reverse it.

Porsche has already incurred enormous costs changing its EV trajectory, including a €3.9 billion charge associated with the strategy reversal. My view would be: take the embarrassment once rather than defend the mistake for another decade.

3. China gets its own war room

I would stop treating China as "Europe, but Chinese".

Dedicated Chinese product, software and customer-experience team.

Based in China.

Reporting directly to me.

I would hire senior people from BYD, Xiaomi, Nio, Li Auto and Huawei.

Not consultants.

Actual product people.

I'd ask one question:

Why would a wealthy 35-year-old Chinese buyer spend twice as much on our car?

And I wouldn't accept "heritage" as the answer.

Chinese EV-native manufacturers have become exceptionally good at software, rapid product iteration and matching local consumer expectations. That's a central reason traditional German manufacturers are being punished there.

My answer may actually be that Porsche should become smaller in China.

That's an acceptable conclusion.

What isn't acceptable is discounting £100,000 cars to defend a market-share PowerPoint.

4. Immediate cost and complexity purge

I would demand a 90-day report showing:

every management layer, every committee, every platform dependency, every external consultancy contract and every project consuming more than €10m.

Then start deleting.

I'd set a target of removing 20–25% of corporate decision layers and committees, not necessarily 25% of engineers.

Porsche's problem isn't that it employs too many people capable of engineering a suspension system.

I suspect it employs too many people involved in approving the meeting to discuss the suspension system.

The objective is:

idea → engineering decision → prototype → production

in half the current time.

5. Freeze vanity projects

Anything that doesn't:

A) make money
B) improve the product
C) materially strengthen Porsche desirability

is frozen.

Brand experiences, speculative digital ventures, lifestyle projects and obscure software initiatives all get challenged.

I wouldn't cancel them blindly.

But the person responsible gets 20 minutes to explain the return.

No return?

Gone.

6. USA: make a decision

Porsche was hit by approximately €700 million of US tariff costs in 2025, according to its reported results and subsequent reporting.

I would immediately commission a US manufacturing feasibility programme.

But I wouldn't build a Porsche factory in America simply because Trump shouted at me.

I'd investigate using existing VW Group capacity for final assembly of the Cayenne and potentially Macan.

911, GT cars and core sports cars stay German.

That's important.

A US-built Cayenne is commercially defensible.

A US-built GT3 risks damaging something incredibly valuable for comparatively little benefit.

Then the 12-month plan
1. Re-establish what Porsche actually is

This would be my product hierarchy:

911 — the brand

718 — accessible sports car

Cayenne — profit engine

Macan — younger/customer acquisition car

Panamera — specialist luxury GT

That's it.

Every product must have a clearly defined job.

I would be extremely sceptical about endless additional SUVs, seven-seat derivatives and niche EV products.

Porsche doesn't need to fill every segment.

Scarcity is an asset.

2. Fix software by admitting Porsche shouldn't build everything

I'd be ruthless here.

Porsche does not need to write every line of code.

Buy commodity technology.

Partner for infotainment.

Partner for AI.

Partner for autonomous systems.

Use VW Group platforms where customers genuinely don't care.

Then spend Porsche money on:

steering feel
brake calibration
powertrain response
chassis control
seat position
vehicle dynamics
design.

The customer doesn't care whether Stuttgart wrote the Bluetooth stack.

They care if their £130,000 Porsche feels special.

3. Massively increase derivative profitability

Porsche has historically been brilliant at this.

I would double down.

GTS.

Turbo.

Turbo S.

GT.

RS.

Heritage.

Exclusive Manufaktur.

Paint to Sample.

But I would impose discipline.

No fake "special edition" with a sticker pack and £30,000 premium.

The wealthy customer is not stupid.

The product has to have technical or genuine collectible integrity.

4. Reduce inventory and protect residuals

I'd rather lose 30,000 units than train customers to wait for a 15% discount.

Dealer stock gets aggressively managed.

Production follows real orders much more closely.

Porsche has to regain the situation where the customer thinks:

Can I get one?

rather than:

What contribution are Porsche putting into the finance deal this quarter?

That single psychological change matters enormously to a luxury manufacturer.

5. Change management incentives

This is probably my most important change.

Senior management bonuses would be based on:

operating margin

free cash flow

residual values

warranty cost

development time

customer retention

Not raw registrations.

Not EV percentage.

Not number of models launched.

You get the behaviour you financially incentivise.

6. Accept a smaller Porsche

And this is where I think investors might initially hate me.

I would publicly say:

Porsche may sell fewer cars five years from now than previously planned.

But I'd then say:

We intend to make considerably more money on every Porsche we sell.

Porsche's reported 1.1% operating return in 2025 is utterly incompatible with the economics investors historically associated with the brand. The company itself has said its current realignment is intended to make it leaner and restore earnings power.

My blunt CEO diagnosis would be this:

Porsche has started behaving like a large car company that happens to own a luxury badge.

I'd reverse that.

It should behave like a luxury sports-car company that happens to manufacture at meaningful scale.

I honestly think the biggest strategic mistake would be chasing BYD and Xiaomi at their own game. Porsche will never beat China by being a more expensive, slower-moving Chinese technology company.

I'd make it smaller, faster, less complex and much more arrogant about what deserves to wear a Porsche badge.

And, genuinely, I'd be prepared to take two absolutely horrific quarters to do it.

Because the stock is already in the dumpster. That's precisely when you do the painful stuff.

limpsfield

6,635 posts

280 months

Saturday
quotequote all
Too much ai slop on ph.

Dog Biscuit

2,299 posts

24 months

Saturday
quotequote all
limpsfield said:
Too much ai slop on ph.
Yep - Just wanged it in and that's what it spat out.

That said, BMW have emerged very profitable with less volume sales.

They promoted their M brand introduced neue klasse to reset and distinguish their brand

Porsche cant just carry on with the same stuff as frankly when the world becomes EV only they can't just rely on being Porsche

Cheib

25,268 posts

202 months

Saturday
quotequote all
Porsche have to focused on their USP and get some volume sellers in their line up. They’ve chased margins with huge prices increases combined with huge increases in financing costs and lost a lot of customers as a result,

Driving dynamics/engineering and their heritage.

As others have said trying to compete with the Chinese is folly, I imagine the next generation of Chinese SUV’s will make life extremely uncomfortable for the European OEM’s.

I don’t think the market really wants a £100k Boxster it wants a more affordable 911. Make that more affordable 911 a sports car rather than the GT feel 992’s. I test drove an early 992 S and thought it was a very dull 911 to drive at normal road speeds

Focus on making the next ICE Boxster a genuinely superb drivers car and price it where it will deliver much needed sales volumes…it was previously a much lower volume seller than the 911. Design it in such a way that they can deliver a genuinely lightweight version to aim at the enthusiast. They’d sell as many as they could make.

Ice Macan has already been withdrawn from sale, I think it’s got much more chance of resisting the Chinese than the Macan EV….again I’d focus on the driving experience.

In general they need to keep the accountants out of the room and let the engineers build cars….amazingly increasing prices by 20 to 30% whilst delivering cars of noticeably lower build quality hasn’t worked.

RDMcG

Original Poster:

20,723 posts

234 months

Saturday
quotequote all
Cheib said:
Driving dynamics/engineering and their heritage.


In general they need to keep the accountants out of the room and let the engineers build cars .amazingly increasing prices by 20 to 30% whilst delivering cars of noticeably lower build quality hasn t worked.
I agree completelythat the 911 needs to be distinguishable not just be raw performance but by the experience of a very communicative,driver-focused car that reflects its history.
One of the challenges will be to build this product that is exciting while meeting the plethora of EU regulations. Very small high end people like (say) Koenigsegg or Pagani at the very top end of the market do not have as many compliance regulations I believe. Porsche does not have that luxury.

If course we are looking at the company from the outside and do not have a clear roadmap of future products. Beyond the 992 which is at the advanced end of its evolution there is no information even directionally.


williamp

20,259 posts

300 months

Saturday
quotequote all
That's got to be the underlying question: volume, or profit margin?

If we accept that they exist to make money via selling cars, then should they be selling lots of low volume, low profit cars, or a few high margin, high profit cars??

I doubt its going to be the former. As people are used to buying the cheapest car they can and who cares about the brand. So that leaves high margin. We've see the Silverstone edition 911. Will there be a 911 GT3 RS R Silverstone club version, with the 1000km pack, florio pack, Vic Elford pack and ...

Quattr04.

1,157 posts

18 months

Saturday
quotequote all
Say “by building fewer numbers of cars they will become more exclusive” then put the price up 20%

Bring back a petrol macan and cayenne

Focus on rich and emerging markets that don’t have salve labour to build their own, like the UAE, Australia and emerging markets

Bring out a cheap model like they did last time they where in trouble and the time before that etc

Learn that endless growth and more and more sales does not fit in a world of high inflation and high costs.


thebraketester

15,664 posts

165 months

Yesterday (00:13)
quotequote all
Can I walk into a Porsche dealer and order a 911 GT3 right now? (Well... Monday morning)

Jones the cat

1,058 posts

19 months

Yesterday (00:16)
quotequote all
If I was CEO I would introduce a 912. A budget version that will fly off the shelves (so to speak)
A Porsche-bodied Audi TT/TTS with a 2.0-litre four-cylinder petrol engine. Porsche could retain much of the MQB floor structure, bulkhead, windscreen position, drivetrain and suspension mounting points. A more expensive 912 S could use the TTS s quattro system.

Retail for £57,500. For every one 911, you'd sell ten 912's through affordability into the brand without compromise.


and my second move would be to back bring Pinky Lai in as chief designer.


Edited by Jones the cat on Sunday 12th July 04:14

darreni

4,468 posts

297 months

Yesterday (00:33)
quotequote all
thebraketester said:
Can I walk into a Porsche dealer and order a 911 GT3 right now? (Well... Monday morning)
Probably not. And that needs to change, if there are buyers, sell them a car.

And as above, bring back petrol Macans and cayennes. The most successful model variants and you stop selling them? Madness.

jonny996

2,707 posts

244 months

Yesterday (00:43)
quotequote all
Bring back the ICE option back.
Use the golf as a platform to produce a hot hatch.

dxg

10,505 posts

287 months

Yesterday (04:36)
quotequote all
Jones the cat said:
If I was CEO I would introduce a 912. A budget version that will fly off the shelves (so to speak)
A Porsche-bodied Audi TT/TTS with a 2.0-litre four-cylinder petrol engine. Porsche could retain much of the MQB floor structure, bulkhead, windscreen position, drivetrain and suspension mounting points. A more expensive 912 S could use the TTS s quattro system.

Retail for £57,500. For every one 911, you'd sell ten 912's through affordability into the brand without compromise.


and my second move would be to back bring Pinky Lai in as chief designer.


Edited by Jones the cat on Sunday 12th July 04:14
They almost did that years back when there were rumours that they were going to adopt the VW BlueSport roadster concept.