Core Viewpoint - Porsche, once hailed as the "most profitable car company in the world," is facing a severe operational crisis, with profits plummeting by 99% and a significant loss reported in the third quarter of 2025 [1][2]. Financial Performance - In the first three quarters of 2025, Porsche reported a loss of €9.66 billion (approximately ¥80 billion) and a drastic decline in sales profit from €40.35 billion to €40 million year-on-year, marking a 99% drop [1][2]. - The company's operating revenue for the first nine months of 2025 was approximately €26.86 billion, a 6% decrease compared to the previous year [2]. - The gross margin per vehicle fell to 13.2% in Q3 2025, the lowest for the year, indicating a significant erosion of brand value [2][4]. Market Dynamics - The Chinese market, once a key driver for Porsche, has seen a continuous decline in sales, dropping from 95,700 units in 2021 to 32,000 units in the first three quarters of 2025, a 26% year-on-year decrease [4][5]. - While the U.S. market showed some growth with 64,446 units delivered in the first three quarters of 2025, the impact of tariffs has diminished this growth, with additional costs reaching €300 million [4][5]. Strategic Challenges - Porsche's profit collapse is attributed to a combination of strategic missteps, external shocks, and market misjudgments [5][6]. - The company has shifted its strategy from a focus on electric vehicles to a more diversified approach, which has led to significant restructuring costs amounting to €2.7 billion in the first three quarters of 2025 [6][8]. - The management's decision to delay electric vehicle launches and extend the lifecycle of combustion engine models has resulted in a disconnect with market demands [8][10]. Management Changes - The announcement of the end of the "shared CEO" model and the potential appointment of Michael Leiters, who has extensive experience in product development, has raised market expectations for a turnaround [9][10]. Historical Context - Porsche has faced crises before, notably in the 1990s, and successfully revived its brand with the introduction of the Boxster, which attracted younger consumers [10][12]. - The current crisis is seen as a pivotal moment for Porsche, with the need to balance new energy product capabilities, intelligent experiences, and brand value to navigate the evolving market landscape [12][14]. Future Outlook - The company aims to regain its footing in the Chinese market by focusing on younger, digitally-savvy consumers and optimizing its dealer network [12][14]. - The success of Porsche's turnaround efforts will depend on its ability to adapt to changing consumer preferences and market conditions, particularly in the context of increasing competition in the electric vehicle space [12][14].

Core Insights - Porsche reported a significant loss of €966 million (approximately ¥8 billion) in Q3, with profits plummeting 99% from €4 billion in the same period last year to just €40 million [1][3] - The decline in sales and profits has raised concerns about Porsche's market position, leading to discussions about its ability to recover through new product launches [1][3] Financial Performance - Q3 sales revenue was €8.7 billion, below market expectations of €9 billion, with a total revenue of approximately €26.86 billion for the first three quarters, a 6% year-on-year decline [1][3] - Deliveries in the first three quarters totaled 212,509 units, a 6% decrease compared to the previous year, with notable declines in key markets such as China, where sales dropped 26% [2][4] Strategic Challenges - Porsche's losses are attributed to past strategic decisions, including the postponement of electric vehicle launches and the extension of the lifecycle for several fuel and hybrid models, resulting in additional costs of approximately €2.7 billion [3][4] - The U.S. tariff policy has further pressured Porsche's performance, with an estimated additional cost of €300 million in the first three quarters of 2025, leading to a projected total loss of €700 million for the year [4] Market Dynamics - Despite the challenges, Porsche achieved record delivery numbers in the U.S. market, with sales increasing by 5% to 64,446 units, contrasting with a 26% decline in China [4][5] - The company is facing intense competition in the entry-level segment, with competitors offering superior price, quality, and emotional value, leading to a loss of younger customers [7][10] Product Development and Innovation - Porsche has not introduced a new flagship model in over a decade, leading to concerns about its product lineup and market appeal [5][11] - The electric vehicle strategy has been inconsistent, with the flagship electric model Taycan experiencing a 10% decline in sales, and the new electric Macan facing delays and challenges in the competitive Chinese market [8][10] Future Outlook - Porsche plans to optimize its organizational structure, with plans to lay off 1,900 employees and cut 2,000 temporary positions by 2025 [4][11] - The company anticipates that its performance will hit bottom this year, with expectations of significant improvement starting in 2026, although this is still far from its historical profit margins of 15% [4][11]

Core Viewpoint - Porsche has officially discontinued the fuel-powered versions of the Boxster and Cayman, closing global order channels for these models, while the exact production cessation date remains unannounced [1] Group 1 - Porsche has not disclosed the official production end date for the Boxster and Cayman models [1] - There are rumors suggesting that Porsche may take until 2026 to fulfill all existing orders for the 718 Cayman and Boxster [1] - The company is actively developing electric versions of these models, with mass production expected to begin in 2026 [1]

Domestic News - Anhui Province will waive towing and lifting fees for highway rescue services starting September 20, 2025, to enhance road network efficiency and public satisfaction [2] - Chongqing City has allocated an additional budget of 135 million yuan for vehicle and electric bicycle trade-in subsidies, with specific allocations for scrapping and replacing vehicles [3] - In August, China's new energy vehicle retail sales reached 1.079 million units, a year-on-year increase of 5% and a cumulative retail of 7.535 million units for the year, up 25% [4] International News - The labor committee of Volkswagen Group is pressuring CEO Oliver Blume to relinquish his dual leadership role as both CEO of Volkswagen and Porsche, a concern since Porsche's IPO in 2022 [5] - General Motors CEO Mary Barra sold 370,000 shares of the company, cashing out approximately $21.67 million, which represents 40% of her holdings, raising investor concerns about the company's future performance [6] - The Korea Exchange reported that all top ten corporate groups in South Korea, including Samsung and Hyundai, have submitted plans to enhance corporate value [7] Corporate News - Wang Xiaofei has been appointed as the new Executive Vice President of Changan Ford, succeeding Yang Dayong [12] - NIO's CEO Li Bin announced a target of 50,000 monthly deliveries in Q4 2025, with specific production targets for the L90 and new ES8 models [13] - China Export & Credit Insurance Corporation has insured a $285 million project for a nickel material production line in Morocco, marking the successful launch of Africa's first new energy materials base [14] - EVE Energy has officially opened its solid-state battery production base in Chengdu, with an annual capacity of nearly 500,000 cells, targeting high-end applications [15]