Porsche’s “Sportwagenschmiede ’35” Turnaround: Higher-End Cars, Cost Cuts and a New Halo Supercar

Porsche AG announced a restructuring plan, Sportwagenschmiede ’35, to restore profitability after its operating margin fell to 1.1 % in 2025. The plan combines cost reductions, a workforce cut of roughly 25 %, and a shift toward higher-margin models, including the mid-engine Mission S concept slated for reveal on October 15.

Porsche Targets 9,000 Job Cuts In Major Profitability Drive

Porsche, long the most profitable VW Group brand, saw margins dip after a sharp decline in Chinese demand, costly EV-strategy reversals, and a $6.9 billion write-down of VW’s 75 % stake. The parent now expects a 1 % margin in 2026 after $11.5 billion in worker-buyout charges.

Porsche shifts toward higher-end models, exclusivity as automaker looks to restore profits

• January 2026 – Michael Leiters becomes chair of Porsche’s executive board.

Car and Driver

• October 7 2026 – Presentation of the Sportwagenschmiede ’35 plan at Capital Markets Day in Weissach.

Reuters

• October 15 2026 – Unveiling of the Mission S concept.

Porsche's New Flagship Supercar Has A Name And A Debut Date

• 2027–2028 – Launch of the all-electric 718 Boxster and Cayman (full production in 2028).

InsideEVs

• 2028 – Introduction of a new gasoline-powered compact SUV to replace the Macan, built on Audi’s PPC platform.

MotorTrend

• Deliveries 2025: 279,449 vehicles (?10 % down from 2024).

InsideEVs

• Target break-even volume: under 200,000 units annually.

Porsche teases mid-engined hypercar but axes plans for petrol Boxster, Cayman successor

• Workforce reduction: 9,000 positions by 2035 (?25 % of staff).

Reuters

• Management cuts: 40 % of senior roles.

Car and Driver

• Development-cost cut: ~20 % reduction.

Car and Driver

• Planned price increase: top-end models to rise about 20 %, pushing flagship averages above €330,000 by decade’s end.

Car and Driver

The strategy pivots Porsche from volume to “value over volume,” betting on higher-priced, low-volume vehicles to lift margins. By focusing on the 911 family, new 911 derivatives, and the Mission S halo car, Porsche aims to compete with Ferrari’s high-margin lineup. The mix of two combustion models for every EV reflects a nuanced power-train approach. Successful execution could stabilize VW Group’s finances and preserve Porsche’s brand cachet.

MotorTrend

• Porsche increased its stake in Manthey Racing to 67 %, expanding performance kits and track experiences under the “Home of Sports Cars” umbrella.

Porsche AG increases its stake in Manthey Racing GmbH

• The 718 Boxster and Cayman will be EV-only, with full production in 2028, while a gasoline-powered compact SUV launches the same year alongside an electric Macan.

InsideEVs

Sources differ on the 718’s internal-combustion version. Early 2025 investor slides referenced “top ICE derivatives,” suggesting a limited-run gas model. Later corporate communications (Matthias Rauter) clarified that a gas 718 was never officially confirmed and is now cancelled. The discrepancy highlights a gap between earlier planning documents and the final roadmap disclosed on October 7.

Porsche Backtracks On Gas-Powered Boxster/Cayman It Previously Said Was Coming

• “At the moment, the main focus is on reducing costs and making the company more financially robust,” — Michael Leiters, chief executive

Bloomberg

• “We want to reinforce Porsche as the world's most desirable sports car manufacturer,” — Michael Leiters, chief executive

Reuters

• “A recovery in China is not in our plan right now,” — Michael Leiters, chief executive

Reuters