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

[goblin]

What is he saying here?

That the Labor dept. in Singapore used to facilitate travel to China and India at least in part so Singaporeans can compare and see if they have basis to complain about their own working conditions.

 

[KrisZ]

What is he saying here?

A whole bunch of nothing. That’s what they’re good at, say a bunch of stuff without saying anything specific and let people fill in the details themselves.

Just like so…

Labor costs are too high; labor is too powerful; labor is fat around the middle.

 

[andrew_j]

I never understood why Porsche so happily jumped on the SUV bandwagon. I would understand it if they were a standalone company, but being that VAG has VW for mainstream buyers and Audi for premium offerings, I never understood the need for Porsche to do anything but the 911 and Boxster/Cayman. I realize the Cayenne has been around a long time, however.

Point is, why do I need a Macan when the Q5/SQ5 exists? At the end of the day, I won't be sad as long as they continue making 911s that consume dinosaurs.

The SUV sales of marked up but heavy Porsche touch Audi offerings subsidize the cars. People love SUVs irrelevant to brand. Even Lamborghini sells a premium Audi shared platform SUVto help offset other costs.

 

[Vercingetorix]

Porsche least reliable (link)

Another one (link)

And another:
https://www.porscheannarbor.com/are-porsches-reliable-vehicles/
And another:
https://www.iseecars.com/reliability/porsche-reliability

Maybe better to just ignore what’s posted on the internet and flip a coin.

 

[97prizm]

Per Autoblog 07/24/25

Bumpy road ahead for a lot of automakers. A lot of uncertainty due to tariffs, EV's and changing geopolitical issues.

"Porsche has warned employees that its current business model “no longer works,” as the company braces for cost-cutting talks amid falling profits, China struggles, and EV headwinds.

CEO Oliver Blume told employees that the company’s traditional business model is no longer sustainable in the current climate. “Our business model, which has served us well for many decades, no longer works in its current form,” Blume said.

This sobering admission sets the tone for a forthcoming round of cost-cutting talks, with Porsche now preparing for a serious overhaul of its production structure, spending priorities, and long-term strategy. Labor negotiations are expected to begin later this year — and if the last round of restructuring is anything to go by, the fallout could be substantial.

North America Up, China Down​

To the casual observer, this warning might seem surprising. After all, Porsche’s North American division just posted its best-ever half-year sales figures. Deliveries rose 11.4% year-over-year, with 38,696 vehicles shifted in just six months. CEO of Porsche Cars North America, Timo Resch, credited the growth to customer enthusiasm and the strength of the dealer network.

But the bigger picture is far less rosy. Globally, Porsche is still down 8% on sales in Q1, and much of that downturn is being driven by a stunning 42% sales drop in China. The world’s largest car market, once a reliable growth engine for the German automaker, has become a liability amid rising protectionism, weak consumer confidence, and a fiercely competitive EV sector.

Blume hasn’t minced words about the road ahead. Porsche is expected to move away from its prior goal of 80% electric vehicle sales by 2030, and more investment will be reallocated to hybrid and combustion powertrains. It’s a dramatic pivot for a brand that only a year ago appeared all-in on electrification.
Porsche’s warning comes at a pivotal moment not just for the company, but for the industry at large. With global demand for EVs cooling and trade politics turning up the heat, even luxury stalwarts aren’t immune to the turbulence. Porsche’s leadership says further announcements about structural changes will follow later this year."

The big issue is that there are no manual transmissions available for 2025 models only pdk. For most manufacturers thats not an issue. Porsche said a couple of years ago that in the 911 manual transmissions were a 25-30 percent take rate. In the US and Canada the GT3 had a 70 percent take rate.

 

[Wylie6G72]

I see enough Macans in my neighborhood to think Porsche are not dead and buried yet.

Honestly can't remember the last time I saw a late model 911 on the road. Their SUVs are their lifeblood and it's evident in Dallas when you sit in traffic and all Porsches you see are Cayennes and Macans. Have to admit, I loathe compact SUVs, CUVs, crossovers, etc. but that Macan is a very handsome little number. I think Porsche is doing them right, but I guess it's not enough.

 

[andrew_j]

Honestly can't remember the last time I saw a late model 911 on the road. Their SUVs are their lifeblood and it's evident in Dallas when you sit in traffic and all Porsches you see are Cayennes and Macans. Have to admit, I loathe compact SUVs, CUVs, crossovers, etc. but that Macan is a very handsome little number. I think Porsche is doing them right, but I guess it's not enough.

A comical thing is if you pull plastic Porsche engine cover on base model Macan with 2.0, it reveals a stamped into steel VW as it uses GTI motor tuned for Macan.

 

[tbm5690]

A comical thing is if you pull plastic Porsche engine cover on base model Macan with 2.0, it reveals a stamped into steel VW as it uses GTI motor tuned for Macan.

That's pretty typical for all brands that share a parent company. Aston Martins used to have the same lowly remote fobs as a base Ford. I have the Audi stamp on multiple components under the hood of my VW.

 

[Skippy722]

That's pretty typical for all brands that share a parent company. Aston Martins used to have the same lowly remote fobs as a base Ford. I have the Audi stamp on multiple components under the hood of my VW.

Chrysler and their Mercedes FOBIK’s. Certain years of Aston Martins used F-250 fuel pumps…. Naturally the “Aston” parts are 3x the cost. Heck my 2011 Durango still had Mercedes Benz stamps on stuff.

 

[Wylie6G72]

A comical thing is if you pull plastic Porsche engine cover on base model Macan with 2.0, it reveals a stamped into steel VW as it uses GTI motor tuned for Macan.

With some creative plastic work, you could make this go pretty easily. But this applies to a lot of brands. It just seems to be very prominent in the VAG world.