Porsche's New Strategy: Sell Fewer Cars, Make More Money
Despite a planned production cut, the 718 is still coming back.
The Breakdown
- Porsche CEO reveals plans to reduce production capacity.
- Michael Leiters believes costs spiraled out of control.
- The 718 Boxster and Cayman are still coming back.
2023 was Porsche’s best year ever in terms of sales, with 320,221 cars shipped to customers worldwide. However, much has changed in the two years that followed. A sharp decline in China, driven by rising local competition, has weighed heavily on the bottom line. Additionally, the discontinuation of the Macan and 718 models in Europe, following their failure to meet the latest cybersecurity regulations, further dented business.
In 2025, deliveries fell to 279,449, roughly back to 2020 levels. 2026 isn’t shaping up to be any better, with demand falling by 15 percent in the first quarter to 60,991 cars. Facing this new reality, Porsche is looking to reduce production capacity to better align with weaker demand. Nevertheless, CEO Michael Leiters remains confident the company can still generate higher profits despite lower volumes. The goal is to focus on stronger margins for existing and future products, even if that comes at the expense of overall sales.
Speaking with German newspaper Frankfurter Allgemeine Zeitung, the automaker’s boss made the position clear: “Porsche has to make money even with fewer cars.” Even with plans for reduced annual output, the portfolio is set to grow, including the return of the 718 sports cars: “We want to continue attracting new customers to the brand.” He did not go into detail, but it is widely understood that the Boxster and Cayman will be offered with both combustion engines and fully electric drivetrains.
The Three-Row SUV's Future Is Undecided
FAZ reports that the future of a previously announced large three-row SUV positioned above the Cayenne is currently uncertain. Codenamed K1, the model was initially planned as a fully electric vehicle before Porsche went back to the drawing board to add combustion engines. Zuffenhausen is now allegedly undecided on whether to proceed with the flagship SUV at all.
Elsewhere in the lineup, a new performance model positioned above the 911 could still happen. Back in March, Porsche told Motor1 a hypercar is under consideration alongside a new grand touring model, but the future of both depends on customer feedback. Updates on how the lineup will evolve are expected this fall. We should also learn more about the new compact crossover set to replace the first-generation Macan, which goes out of production this summer.
Porsche also wants to deepen its ties with Audi to reduce costs, which FAZ cites Leiters as saying have “spiraled out of control” in recent years. The CEO declined to comment on new rumors suggesting further workforce reductions of between 2,000 and 4,000 employees. He did say a new cost-cutting program is likely to be finalized before the usual summer break in July.
Porsche Cayenne Electric and Porsche Cayenne Turbo Electric
Motor1's Take: Porsche may be in a delicate position, but work is underway to turn things around through new products. Although the future appeared predominantly electric at the start of the decade, the renewed focus on combustion engines should help bring ICE loyalists back into showrooms. By far the most important volume model will be the new gas and hybrid crossover mechanically related to the Audi Q5.
It would also make sense for Porsche to develop that larger SUV. Such a model would likely perform well in North America and the Middle East, where full-size luxury SUVs remain highly popular. The company would not need to start from scratch, given that the first-ever Audi Q9 is about to break cover.
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