Porsche Strategic Realignment

[P_Coastal]

Interesting developments:

https://investorrelations.porsche.com/e ... l-figures/

update_strategic_realignment.pdf

(2.42 MiB) Downloaded 80 times

[blueline]

Very interesting indeed. Thanks for sharing!

While obviously a simple and slick (but effective!) power-point type corporate presentation, it does suggest that not only has Porsche substantially adjusted financial expectations to meet a new reality, they have also altered product mix expectations for ICE, (x)HEV, and BEV vehicles to hopefully better weather the storm. This is great news!

(By the way, Perplexity says this about the terminology "(x)HEV" that Porsche is using: "The new term “(x)HEV” in reference to Porsche’s hybrid vehicles reflects a broader and more precise categorization of hybrid technology. Traditionally, “HEV” stands for Hybrid Electric Vehicle, which includes any vehicle that combines an internal combustion engine with an electric propulsion system to improve efficiency or performance. The “x” serves as a variable or placeholder in this context, denoting the specific hybrid system’s scope or technology used in each model—such as “PHEV” (Plug-in Hybrid Electric Vehicle), “MHEV” (Mild Hybrid Electric Vehicle), or “T-Hybrid” (as used in the new 911 GTS for a performance-focused system)."

And, more importantly, I saw on page 11 that we should expect a return at some point soon of an ICE version of the 718 to be sold alongside the upcoming BEV. Yay! Did someone at Porsche wake up and see the light? Maybe so!!!!!!

Screenshot 2025-09-19 230619.png (780.02 KiB) Viewed 786 times

[blueline]

A bit of a more sobering view from the WSJ this morning. The article is (or should be) unlocked.

https://www.wsj.com/business/autos/pors ... _permalink

Some takeaway points from the piece:

"The stock has almost halved since the IPO as costs have mounted. U.S.-traded American depositary receipts that track the stock fell 6% on Friday after the announcement, which was published after the market closed in Frankfurt."

"Porsche warned on profit for the fourth time this year after making a screeching U-turn on electric vehicles."

"Demand in China, once Porsche’s largest market and a key source of profit, has tumbled this year and shows no sign of improving, the company said. A luxury tax was recently expanded, bringing into scope the company’s Panamera sedan. “Cars [in China] all of a sudden get 12% more expensive without any value for the customers""

"Luxury car maker is to delay the launch of new electric cars and add new hybrid and combustion-engine models to its lineup."

[Stormy_Monday]

I'm not betting that we will again see a 718 Boxster/Cayman, much less one with an internal combustion engine. Porsche could also easily set up a line in the USA with VW to produce Macans and Cayennes. But they won't. The whole German car industry seems to flailing about right now.

[blueline]

I'm not betting that we will again see a 718 Boxster/Cayman, much less one with an internal combustion engine. Porsche could also easily set up a line in the USA with VW to produce Macans and Cayennes. But they won't. The whole German car industry seems to flailing about right now.

I agree - flailing is a good word for what we're seeing. Porsche is attempting to show resilience anyway they can. Better than nothing I suppose.

However, regarding the 718 line (or whatever number they eventually assign to the car), Porsche's press release from yesterday clearly shows that a "new" ICE 718 is in the works to be sold alongside the BEV 718. Whether that actually comes to pass or not is anyone's guess.

Proof will be in the pudding as they say!

edit: I also won't be betting on that happening.

[Arne2]

I think many people are reading too much into the "New" ICE 718 choice(s). I suspect they are referring to the low-volume GT4/RS type models, not normal street cars. And if you thought today's prices were high, stand by as extreme low volume ICE models are going to be much more expensive...

[blueline]

I think many people are reading too much into the "New" ICE 718 choice(s). I suspect they are referring to the low-volume GT4/RS type models, not normal street cars. And if you thought today's prices were high, stand by as extreme low volume ICE models are going to be much more expensive...

Seems that will be the more likely outcome, so yes to all of that. Also, Porsche does use the word "potential" in their descriptive future product portfolio graphic. Diversionary subterfuge!

[Stormy_Monday]

I'm waiting for Stellantis to swoop in and buy Porsche

[RDMcG]

My sense was that the days of affordable Porsches are numbered and this is a major challenge for the future. There is not enough volume in the limited and high end cars to cover the overhead. It is going to be a challenging time for Porsche.

[dr bob]

Looking at Porsche and their market history that I have enjoyed, 'rescuing' the company in the past has been via adding lower-end, lower-cost volume generators with Porsche badging. To a certain extent the 914 marketing in the U.S, then the 924 family evolution, the Boxster and it's children, then the Cayenne and Macan as toughed-up versions of cousins. In fact, almost all of these started out as badged-up versions of existing family members. The 924 family is the exception, but still started as an Audi parts-bin effort. While the 911 cars have been the flag-carriers for the brand, it's the rest of the undercard that's made that possible.

So what will Porsche pull out of the hat in the face of their two favorite but now tariff-squeezed markets? It will need to be something that they can sell at a good volume. That may include adding manufacturing ability in the U.S. and China, something they've been hesitant about in the past. Adding assembly capability in other EU countries seemed painful, but was a key part of getting the Boxster launched well. The U.S. and China are far away, and both have some serious political headwinds to overcome, plus the time factor for building full manufacturing capability may not be short enough to be effective in this case.

More: With the family 'competition' for control of the various corporations, the situation ripens for another internal ownership 'discussion' among the players. The Stellantis takeover mentioned above is extremely unlikely, as they are already bailing furiously trying to keep their own sinking members afloat.

It's certainly an interesting time to be a "luxury" brand.