The Porsche CEO’s prognosis was blunt: “The world has changed. We are experiencing a fierce storm. But we are doing everything we can to counteract them. We are resolutely investing in the future. In challenging times, we are continuing to develop Porsche with a precise focus. This requires more resources in the short term, but it will make our company even more profitable in the long term,” he told shareholders at the firm’s annual general meeting this week.
“We accept the challenge. We have a plan. We are acting. And we’re not wasting any time.” This plan, which has already seen significant changes in the composition of the Management Board, is far-reaching. The ‘comprehensive strategic realignment’ will see around 3,900 jobs cut by 2029. Citing the market’s resistance to electric mobility, Porsche will ‘reposition’ (i.e apply the brakes to) its pursuit of battery technology and significantly expand the number of models that are offered with combustion engines and plug-in hybrid drive systems.
Porsche has set aside 1.3 billion euros to pay for the new plan, a notable impact on its earnings that it previewed last month when revealing its 2024 results. Proposing a dividend payment of around 2.1 billion euros, Dr. Oliver Blume reiterated the view that the last financial year has been solid – record sales results were recorded in four out of five regions following a renewal of almost all its existing model lineups – but China’s downturn was substantial enough to result in an overall decrease in deliveries.
“In the future, Porsche will continue to rely on a balanced mix of types of drive systems. Our customers will be able to choose between combustion engines, hybrids, and all-electric drives in every vehicle segment well into the 2030s.” The impending arrival of what seems very likely to be a new GT2 RS was also hinted at. “I can reveal one thing,” noted Dr. Blume, “we are going to be raising the bar in the sports car segment once again.” That much is easy to believe given Porsche’s track record. For everything else, new resolve, money and no little clear-sightedness are obviously required.