Core Viewpoint - Porsche's operating profit has plummeted by 99% to €40 million in the first three quarters of this year, down from €4.035 billion in the same period last year, primarily due to product strategy restructuring, challenges in the Chinese luxury car market, and rising import tariffs in the U.S. [1][3] Financial Performance - Porsche's revenue for the first three quarters of this year was €26.86 billion, a 6% decline year-on-year [3] - The sales return rate dropped to 0.2%, compared to 14.1% in the same period last year [3] - The company reported a total of 212,500 vehicles sold, a 6% decrease, with significant declines in key markets: a 26% drop in China to 32,000 units, a 16% drop in Germany to 22,500 units, and a 4% drop in the rest of Europe to 50,000 units [3] Strategic Adjustments - Porsche announced a delay in the launch of certain electric vehicle models and extended the market lifecycle of several fuel and hybrid models, resulting in an additional €2.7 billion in special expenses [3][4] - The company plans to cut approximately 1,900 jobs at its Stuttgart headquarters by 2029 and is negotiating a new cost-saving plan with labor unions [4] - Porsche's CEO will be replaced at the end of the year, with Michael Leiters set to take over from Oliver Blume [8] Industry Context - Other luxury car manufacturers are also facing challenges, with Mercedes-Benz reporting a 12% decline in global sales in the third quarter and BMW lowering its 2025 performance expectations due to ongoing sales weakness and increased tariff costs [5] - The automotive industry is experiencing significant pressure from rising costs and changing market dynamics, prompting companies to implement cost-cutting measures and strategic shifts [5]