Porsche targets stronger margins with new 2035 strategy

7th Oct 2026 13:32

(Sharecast News) - Porsche set out plans on Wednesday to lift profitability and cut its reliance on sales volumes, as the sports-car maker unveiled a new strategy running through to 2035.

The company said it was targeting a medium-term operating return on sales of 10% to 15%, alongside an automotive net cash flow margin of 9% to 12%. Longer term, it is aiming for an operating margin of 15% and a cash flow margin of 12%.

Under the strategy, dubbed 'Sportwagenschmiede '35', Porsche will focus more heavily on higher-margin models, greater personalisation and lower costs, while seeking to bring its break-even point below 200,000 vehicles a year.

The group is aiming for medium-term sales of €41bn to €45bn, with revenue growing faster than volumes and earnings rising faster than revenue.

Porsche also plans to reduce the number of model variants by around 20%, while increasing its exposure to higher-end D and E segment vehicles. It said it was developing a mid-engined super sports-car platform that could support a new model line positioned above the 911, and was considering an SUV above the Cayenne.

Costs will also come under further pressure. Porsche is targeting reductions of up to 20% in development costs, 30% in production personnel costs and 20% in sales and distribution costs over the medium term.

The workforce is expected to shrink by 25% across direct and indirect functions, with a longer-term target of 30%, while management positions are set to be cut by 40%. Porsche has already agreed measures covering the socially responsible reduction of around 9,000 jobs.

The company said investment and research and development spending should fall substantially after peaking in 2026, helping to improve cash generation and capital efficiency.

Chief executive Michael Leiters said Porsche was currently focused on cutting costs and strengthening its finances before new models and a richer product mix begin to support earnings.

"Our strategy will lay the groundwork to make Porsche significantly more efficient, productive and profitable in three phases. At the moment, the main focus is on reducing costs and making the company more financially robust. We have already achieved some important milestones," Leiters said.