Core Insights - Porsche is facing unprecedented challenges, with a significant decline in profits and sales, particularly in the Chinese market [2][3][4] Financial Performance - In the first three quarters, Porsche's operating profit was only €40 million, a staggering 99% drop from €4.035 billion in the same period last year [2] - The third quarter alone saw a loss of €966 million [2] Market Challenges - The company is under pressure from €3.1 billion in strategic restructuring costs, a sharper-than-expected decline in the Chinese market, and high tariffs in North America [3] - Sales in China have plummeted from 96,000 units four years ago to 56,900 units last year, with a 26% year-on-year decline in the first three quarters of this year [4] Strategic Adjustments - Porsche has announced a restructuring of its battery subsidiary, Cellforce, and plans to introduce more fuel and hybrid models [3][10] - The company is shifting focus back to internal combustion engines while cautiously continuing its electric vehicle strategy [9][10] Competitive Landscape - The luxury car market in China has become increasingly competitive, with domestic brands like NIO and Zeekr entering the high-end segment, impacting Porsche's market share [6][8] - Porsche's entry-level Macan is facing competition from new entrants in the 500,000 yuan price range, which are offering advanced technology and electric capabilities [6] Future Plans - Porsche plans to reduce its dealer network to around 100 by 2026 and invest in first-tier cities to improve operational efficiency [11] - A new CEO, Michael Leiters, has been appointed to lead the company through this challenging period, focusing on addressing deep-rooted issues from its previous success [12]