Porsche confirms 3,900 job cuts by 2029
Shareholders told that Porsche is not immune to global challenges, but will rescale to meet them
The Porsche CEO’s prognosis was blunt: “The world has changed. We are experiencing a fierce storm. But we are doing everything we can to counteract them. We are resolutely investing in the future. In challenging times, we are continuing to develop Porsche with a precise focus. This requires more resources in the short term, but it will make our company even more profitable in the long term,” he told shareholders at the firm’s annual general meeting this week.
“We accept the challenge. We have a plan. We are acting. And we’re not wasting any time.” This plan, which has already seen significant changes in the composition of the Management Board, is far-reaching. The ‘comprehensive strategic realignment’ will see around 3,900 jobs cut by 2029. Citing the market’s resistance to electric mobility, Porsche will ‘reposition’ (i.e apply the brakes to) its pursuit of battery technology and significantly expand the number of models that are offered with combustion engines and plug-in hybrid drive systems.
Porsche has set aside 1.3 billion euros to pay for the new plan, a notable impact on its earnings that it previewed last month when revealing its 2024 results. Proposing a dividend payment of around 2.1 billion euros, Dr. Oliver Blume reiterated the view that the last financial year has been solid - record sales results were recorded in four out of five regions following a renewal of almost all its existing model lineups - but China’s downturn was substantial enough to result in an overall decrease in deliveries.
“In the future, Porsche will continue to rely on a balanced mix of types of drive systems. Our customers will be able to choose between combustion engines, hybrids, and all-electric drives in every vehicle segment well into the 2030s.” The impending arrival of what seems very likely to be a new GT2 RS was also hinted at. “I can reveal one thing,” noted Dr. Blume, “we are going to be raising the bar in the sports car segment once again.” That much is easy to believe given Porsche’s track record. For everything else, new resolve, money and no little clear-sightedness are obviously required.
This is much more to do with the overall EV market slowdown and is affecting every car company to a greater or lesser extent. Their commitment to hte EV Cayman must be giving them sleepless nights too.
However, never underestimate Germans ability to get from A to B without ending up somewhere else.
China is only a threat because they have not had to drag the massive anchor of fossil lovers as they have developed new cars.
This is much more to do with the overall EV market slowdown and is affecting every car company to a greater or lesser extent. Their commitment to hte EV Cayman must be giving them sleepless nights too.
A bit like saying that a fiat punto is a rival of the bmw 1 or Mercedes A-class. Different price point, prestige, badge, and crucially different market strategy: the people who buy a taycan are not going to be bothered by a xiaomy even if it was faster.
Will be very interesting to see how Porsche manages the next couple of years.
Nothing against EV's per se but when your whole schtick is based around characterful ICE's and the drama they create I just feel absolutely no want for something with a generic electric motor, 'Turbo' badge on the back or not.
A bit like saying that a fiat punto is a rival of the bmw 1 or Mercedes A-class. Different price point, prestige, badge, and crucially different market strategy: the people who buy a taycan are not going to be bothered by a xiaomy even if it was faster.
This is much more to do with the overall EV market slowdown and is affecting every car company to a greater or lesser extent. Their commitment to hte EV Cayman must be giving them sleepless nights too.
I'd hate to be a car manufacturer in the current climate to be honest, and it all just seems quite unsteady and uneasy to me.
A bit like saying that a fiat punto is a rival of the bmw 1 or Mercedes A-class. Different price point, prestige, badge, and crucially different market strategy: the people who buy a taycan are not going to be bothered by a xiaomy even if it was faster.
This is much more to do with the overall EV market slowdown and is affecting every car company to a greater or lesser extent. Their commitment to hte EV Cayman must be giving them sleepless nights too.
Porsche are likely to be particularly affected by this transition away from ICE due to their range straddling the volume market of high-end BMW / Mercedes etc, and truly aspirational marques like Ferrari and Lamborghini. They're stuck in a bit of a no mans land in between; a limited number of people who'll want to pay more than what BMW could offer with the likes of their i4M for example, but can't stretch to the full supercar experience of whatever Ferrari are able to provide.
What was previously a gravy-train niche for many years for Porsche and a license to print money and be incredibly profitable has simple come to an end.
A bit like saying that a fiat punto is a rival of the bmw 1 or Mercedes A-class. Different price point, prestige, badge, and crucially different market strategy: the people who buy a taycan are not going to be bothered by a xiaomy even if it was faster.
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