Porsche Admits Trouble Ahead: “Our Business Model No Longer Works”

[wings&wheels]

The German carmakers all have a problem with high fixed costs, particularly labor costs. Add the costs to transition to EV, which may now be stranded, and and subpar results in China and it will be challenging.

Can you say Works Council?

 

[RBT]

Can you say Works Council?

This will be a challenge for all the Euro makers. BMW and MB have done a better job balancing the portfolio of products to get the right mix of price and volume. VW struggles because they cannot get the same margins. And Stellantis is dealing with similar issues - high fixed costs in Europe, EV transition cost allocation, and a prior CEO who was pretty tone deaf with respect to US consumers and managed to screw up a couple of cash cow brands. The new crew there will get it straightened out but it will take time.

 

[Carmudgeon]

Can’t be all bad. They have WEC and IMSA both with the 963. If times were tough those programs would be axed.

There's nothing guaranteeing they won't be, or at least reduced, to a customer-only program(s).

Penske's contract began in 2023, and it wouldn't be a surprise to find that it was a four-year term in line with their commitment through the 2027 season.

Porsche and BMW are pushing for technical convergence, which is complicated by the fact that the technical regs were extended first to 2029, and now through 2032, to help Genesis, Ford, and McLaren better amortize their investments. Trying to balance LMH and LMDh has been a difficult task, but hasn't been helped by the rotten job the ACO/FIA have done. Porsche ran a perfect race at LM, but couldn't catch up to the yellow "customer" Ferrari, whose cars have enjoyed a too easy ride this season.

And despite the rules against it, the public grumbling has become louder of late, notably from Toyota. At least the top brass has noticed, even if the technical staff continues to fumble.

Also rumors surrounding Penske being poached by another OEM, or simply becoming a free agent if Porsche decides to cut back.

The GT programs are a separate business case, and keeps their foot in the door, so they're relatively safe.

I have the feeling that if they can get win #20 at LM in '26 or '27, they're gone.

It didn't take long for this golden age to tarnish, but that's sports car racing.

On the street car side, not having a backup plan for the (delayed) 718 EV or Macan EV, if they falter, was a misstep. 911s are great, even as they get bigger and more GT-like, but there's a big general price gap between them and the Cayman. And cranking out special editions is a tactic usually reserved for the struggling Anglo sports car marques just to help keep interest alive and get something out the door.

 

[4WD]

Well, I travel allot and to places with money. There seems to be such a thing as high performance SUV’s - and many of the “sports car” and luxury brands are selling them. However, most vehicles coming off the huge car carriers are other brands - but it’s not like these are cheap and they sell too …
Also, parking can be an issue - can’t own 4 like we do LoL …