Core Viewpoint - Porsche is experiencing a significant decline in sales and profits, particularly in the Chinese market, which has shifted from being its largest market to its biggest burden, leading to a critical moment for the brand [2][3]. Financial Performance - In the first three quarters of 2025, Porsche reported revenues of approximately €26.86 billion, a year-on-year decrease of 6% [2]. - The operating profit plummeted to €40 million, down 99% from €4.035 billion in the same period last year [2]. - The third quarter alone recorded a loss of €966 million, equivalent to about 8 billion RMB [2]. Market Challenges - The decline in the Chinese market is attributed to challenging market conditions and intense competition, with sales dropping 28% from 29,551 units in 2024 to 21,302 units in 2025 [3]. - Porsche's product strategy is lagging in the face of the smart and electric vehicle transition, resulting in a lack of competitiveness in the Chinese market [3][8]. - The company is facing pressure from domestic brands like BYD and NIO, which are offering high-performance, intelligent, and rapidly iterating electric vehicles [3][8]. Strategic Adjustments - To address the downturn, Porsche plans to delay the launch of electric models, terminate its battery production plans, and incur a restructuring cost of €2.7 billion [2]. - The company anticipates a tariff expenditure of €700 million this year and intends to raise prices in the U.S. to cope with these tariffs [2]. Industry Trends - The Chinese electric vehicle market is rapidly growing, with a penetration rate reaching 31.6% in 2023, and expected to rise to 40.3% in 2024 [4]. - The market for smart electric vehicles, AI technology, and digital automotive platforms is identified as key growth areas for the future [6]. - Traditional luxury brands must adapt to the evolving market trends in China, focusing on product and technology innovation to maintain competitiveness [8].

This story was originally published on CFO.com. To receive daily news and insights, subscribe to our free daily CFO.com newsletter. The Trial Balance is CFO.com’s weekly preview of stories, stats and events to help you prepare. Part 1 — Porsche’s role in the auto industry’s EV reset Porsche finance leadership is currently steering through one of its toughest years as the company, and, like many of its competitors, is reversing course on its EV strategy. After making a massive EV push, Porsche is facing w ...

Core Insights - Porsche reported disappointing results for the first nine months of the year, attributing this to charges taken last quarter as part of a product strategy realignment in response to changing market conditions in the US and China [1] Financial Performance - Sales revenue for the first three quarters was 26.86 billion euros ($31.22 billion), a decrease of 6% year-over-year [2] - Operating profit fell to 40 million euros ($46.50), down 99% compared to the previous year, with the operating return on sales (ROS) dropping to 0.2% from 14.1% [2] - For the full year, Porsche now projects global sales revenue of 37 to 38 billion euros, revised down from a prior estimate of 40.1 billion euros, with a return on sales expected to be "slightly positive to 2%" [3] Cost Projections - The company anticipates lineup changes and other costs to total around 3.2 billion euros ($3.72 billion) this year, including up to 1.8 billion euros ($2.09 billion) for adjustments to its new electric vehicle platform [4] - The tariff impact for the year is projected to be around 700 million euros ($813.67 million) [5] Market Conditions - In North America, a small decline in sales was noted due to temporarily lower imports after high inventory levels at the end of Q2 [7] - The Chinese market continues to face challenging conditions, particularly in the luxury segment, prompting Porsche to cut dealerships and reduce costs [7] Leadership Changes - Porsche CEO Oliver Blume will step down, with Michael Leiters, former McLaren chief executive, set to take over starting January 1 of next year [8]

"作为保时捷股份公司首席执行官，奥博穆博士在充满挑战的时期勇担重任，成功领导了保时捷股份公司。保时捷股份公司监事会对其卓越贡献表示诚挚感 谢。他将继续担任大众汽车集团首席执行官，我们期待与他继续保持紧密互信的合作。"保时捷股份公司监事会主席沃尔夫冈·保时捷（Dr. Wolfgang Porsche）表示。 在过往十年中，保时捷曾多次成为世界上最赚钱的汽车公司，并且在2022年实现上市。保时捷方面认为，奥博穆以前瞻性视野为保时捷执行董事会完成了新 老交替的战略布局。针对公司现状，奥博穆表示："保时捷两大核心市场——美国与中国，正面临重大变化，对保时捷的商业模式提出新要求。为此，保时 捷今年完成了组织架构调整，并全面升级产品战略。凭借灵活的产品驱动系统战略与优化的成本结构，保时捷已为未来奠定坚实基础。作为大众汽车集团首 席执行官，我将密切关注并支持保时捷的未来发展。" 日前，保时捷股份公司监事会宣布，Michael Leiters博士将自2026年1月1日起接任保时捷首席执行官，奥博穆博士在执掌十年后将继续担任大众汽车集团首 席执行官。过去十年，保时捷多次成为最赚钱的汽车公司，并在2022年上市。当前，保时捷面临 ...

日前，保时捷股份公司监事会宣布任命Michael Leiters博士为保时捷股份公司首席执行官，自2026年1月1日起正式生效。已执掌保时捷股份公司十年之久的 奥博穆博士（Dr. Oliver Blume）将继续担任大众汽车集团首席执行官。 "作为保时捷股份公司首席执行官，奥博穆博士在充满挑战的时期勇担重任，成功领导了保时捷股份公司。保时捷股份公司监事会对其卓越贡献表示诚挚感 谢。他将继续担任大众汽车集团首席执行官，我们期待与他继续保持紧密互信的合作。"保时捷股份公司监事会主席沃尔夫冈·保时捷（Dr. Wolfgang Porsche）表示。 在过往十年中，保时捷曾多次成为世界上最赚钱的汽车公司，并且在2022年实现上市。保时捷方面认为，奥博穆以前瞻性视野为保时捷执行董事会完成了新 老交替的战略布局。针对公司现状，奥博穆表示："保时捷两大核心市场——美国与中国，正面临重大变化，对保时捷的商业模式提出新要求。为此，保时 捷今年完成了组织架构调整，并全面升级产品战略。凭借灵活的产品驱动系统战略与优化的成本结构，保时捷已为未来奠定坚实基础。作为大众汽车集团首 席执行官，我将密切关注并支持保时捷的未来发展。" 作为奥 ...

Core Insights - Porsche has announced a significant strategic shift, delaying the launch of certain electric vehicle models and refocusing on fuel and hybrid vehicles due to declining sales and increasing profitability pressures [2][3] Group 1: Strategic Adjustments - The development of a new electric platform originally scheduled for the 2030s has been indefinitely postponed, with Porsche opting to collaborate with other brands within the Volkswagen Group to restructure its technology framework [2] - The flagship SUV series (internal code K1) will prioritize the release of fuel and plug-in hybrid versions, while the electric version's launch date remains uncertain [2] - The launch of the 718 electric version has been significantly delayed from 2026 to around 2035, and the fuel and hybrid versions of key models like Cayenne and Panamera will continue to be sold until around 2035 [2] Group 2: Market Challenges - Demand for luxury electric vehicles has not met expectations, with Porsche's electric vehicle sales dropping by 32% year-on-year in the first half of 2025, and the flagship Taycan experiencing a 41% decline [3] - Trade policies, such as the 27.5% tariff on imported cars in the U.S., have led to a 15% price increase for models like Macan, resulting in a 28% drop in sales in the U.S. market [3] Group 3: Competitive Landscape - Domestic electric vehicle manufacturers in China, such as BYD, NIO, and Xpeng, are rapidly gaining market share and posing a significant challenge to traditional luxury brands like Porsche [4][8] - The Chinese electric vehicle market is projected to exceed 12 million units in production and sales in 2024, maintaining its position as the world's largest market for ten consecutive years [4] - The top ten companies in China's electric vehicle market accounted for 85.6% of total sales, with Porsche not ranking among them [6]

Core Viewpoint - Porsche is making significant adjustments to its product strategy in response to long-term sales decline and increasing profitability pressures, shifting focus back to internal combustion engine models, including hybrids, while pausing the launch of upcoming electric vehicle models [2][3]. Group 1: Product Strategy Adjustments - Porsche has finalized steps to adjust its product strategy, aiming to meet customer demands with excellent products and deliver solid financial performance [3]. - The company plans to introduce new fuel models, including a new SUV series originally intended to be fully electric, which will now offer only fuel and hybrid versions at launch [3]. - The lifecycle of existing models like Panamera and Cayenne will be extended, with internal combustion and hybrid versions available until the mid-2030s [3]. - Due to a slowdown in electric vehicle adoption, the launch of some pure electric models will be delayed, and a new electric vehicle platform planned for the 2030s will be rescheduled [3]. Group 2: Financial Performance and Challenges - Porsche's net profit for 2024 is projected at €3.595 billion, a 30.3% decline year-on-year, with a sales return rate of 14.1%, down from 18% in 2023 [6]. - In the first half of the year, net profit dropped to €718 million, a 66.6% decrease, with a sales return rate plummeting to 5.5% from 15.7% year-on-year [6]. - The high costs of electric vehicles and lower profit margins compared to fuel vehicles, along with U.S. tariffs, have led Porsche to lower its financial forecasts multiple times [6]. Group 3: Strategic Repercussions and Market Trends - The restructuring is expected to result in an €1.8 billion loss in operating profit for 2025, prompting a further reduction in profit expectations [7]. - The anticipated special expenses related to the strategic adjustments are around €3.1 billion, including costs for battery business investments and organizational changes [7]. - The parent company, Volkswagen Group, expects a €5.1 billion loss in operating profit due to Porsche's reforms, leading to a downward revision of its profit expectations as well [7].

Core Viewpoint - Porsche is slowing down its electrification process by introducing more internal combustion engine models and delaying the launch of some electric vehicle models due to changing market conditions [2][5]. Group 1: Strategic Adjustments - Porsche's board has finalized a product strategy adjustment plan to adapt to the rapidly changing automotive industry [2]. - The company will collaborate with other brands under the Volkswagen Group for technical restructuring and synergy [2]. - The planned electric platform development timeline for the 2030s will be adjusted [2]. Group 2: Market Demand Insights - Demand growth for luxury electric vehicles has significantly slowed, prompting Porsche's strategic response [2]. - In the first seven months of this year, the penetration rate of new energy vehicles in China's automotive market for cars priced above 400,000 yuan was only 1.3%, down from 1.6% last year [3]. Group 3: Product Lifecycle and Innovation - Existing electric models will continue to be updated, and Porsche plans to showcase key electric vehicle models and the latest R&D achievements from its newly established China R&D center [5]. - The lifecycle of current internal combustion engine models, such as the Panamera and Cayenne, will be extended, with plans for new models included in the product cycle [5]. Group 4: Financial Implications - The adjustments aim to improve the company's medium to long-term financial performance, although short-term impacts will include significant depreciation and provisions due to platform and project rearrangements [6]. - The strategy aims to create a balanced product mix, enhancing flexibility and market position amid a volatile market environment [6].

Group 1 - Volkswagen AG's subsidiary, Porsche, has delayed its electric vehicle rollout due to weaker demand, challenges in China, and higher U.S. tariffs, leading to reduced profit forecasts for 2025 for both Porsche and Volkswagen [1][4] - The upcoming SUV above the Cayenne, initially planned as a fully electric model, will now launch with combustion engine and plug-in hybrid options, while the Panamera and Cayenne will continue to offer combustion and hybrid variants into the 2030s [2][3] - The delay in EV adoption means certain all-electric models will launch later than planned, and Porsche is rescheduling the development of its next-generation EV platform for the 2030s, reflecting slower-than-expected demand for high-end battery-electric vehicles [3][4] Group 2 - The rescheduling of the EV platform will incur depreciation and provisions that could impact 2025 operating profit by up to €1.8 billion, prompting Porsche to revise its outlook for a positive sales return of up to 2%, down from the previous estimate of 5-7% [4][8] - Porsche is now targeting a medium-term operating return on sales in the low double digits, with business growth expectations lowered to up to 15%, compared to the earlier guidance of 15-17%, and an automotive EBITDA margin of 10.5-12.5%, down from 14.5-16.5% [4][8] - Volkswagen has also lowered its profit margin forecast to 2-3%, compared to the previous guidance of 4-5% [4][8]

Group 1 - Volkswagen Group anticipates a €5.1bn ($5.98bn) impact on its operating profit for 2025 due to Porsche's postponement of new all-electric models [1] - Porsche has revised its medium-term profit targets for Volkswagen Group, lowering the expected return on sales from 15-17% to 10-15% [2] - The launch of certain all-electric vehicle models has been delayed, with a new platform for electric vehicles in the 2030s being rescheduled [3] Group 2 - Porsche's changes, including write-downs on capitalized project costs, will lead Volkswagen Group to revise its operating return on sales forecast for 2025 [4] - Volkswagen Group will incur a non-cash impairment charge of approximately €3bn on goodwill allocated to Porsche, affecting the current year's operating result [5] - The operating return on sales expectations for Volkswagen Group in 2025 has been adjusted to 2-3%, down from 4-5%, with net cash flow in the automotive division now expected to be around €0bn [6]