Porsche to feel the pain before it can pull into the fast lane
Luxury carmaker Porsche has outlined the steps it Is taking in a bid to turn sales and profits around, announced by chairman Dr Michael Leiters at its Capital Markets Day for investors.
The ‘Sportwagenschmiede 35’ strategy includes strengthening its sports car identity with new products and technologies, but will also include 9,000 job losses, with management posititions reduced by 40%.
Improved price-sales positioning, combined with a cost-saving programme and a more agile organisation is expected to lead to greater profitability.
Significant expansion of the individualisation range means the company will become less dependent on volume, with higher value creation per vehicle. It also aims to reduce development costs for future model lines by up to 20%.
Mr Leiters said: “Our strategy will lay the groundwork to make Porsche significantly more efficient, productive and profitable in three phases. At the moment, the main focus is on reducing costs and making the company more financially robust. We have already achieved some important milestones.”
