Porsche is one of the strongest brand names in the world, and for years it was the most profitable automotive entity with a stronghold in Europe, cachet in North America, and huge popularity in China.
But all that changed, as have the fortunes of parent Volkswagen Group. The VW Group now expects a slim 1 percent margin in 2026 after taking $11.5 billion in charges tied to worker buyouts, the collapsing China market, and a $6.9 billion write-down on its 75 percent stake in Porsche. The luxury performance-vehicle brand has seen the bottom fall out of the market in China and also paid dearly for reversing its EV strategy.
Porsche, once a cash cow, saw its own profit margin reduced to 1 percent in 2025. To address the urgent need for a turnaround, Michael Leiters, chairman of the executive board of Porsche AG, has plans to introduce new models, including a mid-engine sports car above the Porsche 911, while adding larger SUVs, bringing back a gasoline-powered Macan, and working to drastically cut costs in all areas.
More emphasis is being placed on the core business and regions such as Europe and North America, both targeted to increase share by 35 percent. That’s due to the lack of foreseeable stabilization in China, which is in a self-destroying price war and innovation cycle that is not sustainable. Under the strategy known as Sportwagenschmiede ’35, which began in January, the lineup is being simplified to remove some variants and eliminate overlap while adding new products in new segments and adding more 911 derivatives.
First the juicy bits. Porsche plans to launch at least one new vehicle every year. Here are some of the products on tap.
Porsche Mid-Engine Sports Car
Porsche has developed a mid-engine super sports car architecture to help shape the future of the brand. It will unveil a concept on the platform, the Mission S, on October 15 (come back to MotorTrend for all the details). A mid-engine supercar would become the new flagship, as the new model line would sit above the 911. There are no powertrain details yet, but the last Porsche supercar was the 918 Spyder plug-in hybrid that ended production more than a decade ago. Porsche has certainly teased the idea many times in recent years, including with the Mission X concept (above).
Porsche is not alone: Audi has the 2028 Nuvolari, a 1,001-hp mid-engine hybrid sports car that uses an architecture related to the Lamborghini Temerario hybrid. Plans for that one call for a limited run of 499 units when it goes into production in 2027.
Electric 718 Boxster and Cayman
The new electric 718 Boxster and Cayman are coming next year after a delay because a key supplier had to be replaced. The cars’ Porsche-developed E-Core platform for the powertrain is available to the Volkswagen group and will be used by Audi, as well. It will also feature the new electrical platform developed by the joint venture with Rivian, which is an 800-volt system for fast charging. Financials will decide where it is made, with a couple European plants in play.
Gas-Powered Macan
“We need to bring the Macan with a combustion engine back to life,” says Leiters, the former McLaren CEO who took over at Porsche in January. The new B-segment SUV will launch in 2028. Referred to internally as M1, it is essentially the return of a gas-powered Macan to fill the gap now that the current Macan is EV only. The gas-burning model will use Audi’s Premium Platform Combustion (PPC) architecture and will be available as gas-only or with plug-in hybrid power. It will be sold in parallel with the current all-electric Macan and is expected to be assembled in Leipzig.
Porsche 7-Passenger SUV
Porsche is also looking to add a 7-passenger SUV for 2029 above the Cayenne to compete with the BMW X7 and Mercedes-Benz GLE. It will have a gas engine, having dumped plans for the electric K1. The production three-row SUV is expected to use Audi tech and the PPC architecture that underpins the new Audi Q9.
A big vehicle is a big challenge, says head of design Tobias Sühlmann, but he understands the proportions necessary and the need for it to be the sportiest SUV in the segment. That means playing with the air intake, diffuser area and aero to create a Porsche look while offering the functionality of an SUV. Porsche wants to increase its share in the D and E segments by 45 percent by 2030.
Being a large vehicle, it is targeted at North America but would not be made in North America. Leiters said he has no plans to make any Porsches in North America.
Customized Vehicles
There are also plans to expand individualization with Sonderwunsch bespoke models, Exclusive Manufaktur customized models, heritage model restorations, Manthey kits, parts, one-off vehicles, and limited series like the Flachbau shown this summer during Monterey Car Week. Porsche wants to scale up this side of the business and integrate it into standard processes at the plant. Porsche is also increasing its stake in Manthey to 67 percent.
Overall, Porsche plans to simplify the lineup when it comes to variants, which was the case for the Panamera and dropping the gas-powered Boxster, as well as working to eliminate overlap between models.
The powertrain mix for the lineup will be 2:1 combustion engine vehicles (including hybrids) to EVs. The 911 will never be electric, Leiters says. Porsche will offer 4-, 6-, and 8-cylinder engines, naturally aspirated, turbo and eTurbo combustion engines, plug-in hybrids, performance hybrids, manual, automatic, and PDK transmissions.
Now For the Bad News
On the cost-cutting side, the work began under Oliver Blume, the CEO of Volkswagen Group who was also leading Porsche until recently. It is being accelerated under Leiters.
Among the actions planned:
- Reduce the cost base and break-even point to below 200,000 units a year, emphasizing value over volume to offer a richer mix and higher-priced models—increasing the average selling price of top end models by about 20 percent.
- Fewer derivatives (by 20 percent), which should increase the sales per variant by 30 percent.
- Reduce development costs by 20 percent, material costs by 10 percent, labor costs by 30 percent, and sales and marketing costs by 20 percent.
- Reduce the time to develop new models by 40 percent with more modularization, less complexity, better use of engineering service providers, and more carry-over parts. The automaker is combining Porsche Engineering and Porsche Digital into Porsche Technologies.
- Porsche is cutting 9,000 jobs. Management costs are being pared by 40 percent, the rest of the workforce is being cut by 25 percent, and changes to compensation and bonuses will be reduced by 10 percent.
- Less reliance on China, which represented 35 percent of volume in 2020 but is down 10 percent and is not expected to hit peak levels again. There are no plans to give up on the market, but the focus will be a smaller but stronger presence, while being prepared to scale up if necessary. Share is expected to decline 15 percent before stabilizing.
- Porsche is selling non-core businesses and narrowing its focus overall. MHP, Porsche’s management and IT consulting subsidiary, is being sold to Tata Consultancy, which will continue as a partner. In April, Porsche decided to sell its remaining stakes in Bugatti Rimac and Rimac Group. Porsche is also winding down Cellforce Group, Porsche eBike Performance, and Cetitec.
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