- Porsche CEO reveals plans to reduce production capacity.
- Michael Leiters believes costs have gotten out of control.
- The 718 Boxster and Cayman are still coming back.
2023 was Porsche’s best year ever in terms of sales, with 320,221 cars shipped to customers worldwide. However, a lot has changed in the two years since. The sharp decline in China due to increasing local competition has weighed heavily on the bottom line. Additionally, the business was further harmed by the discontinuation of the Macan and 718 models in Europe following their failure to meet the latest cybersecurity regulations.
In 2025, deliveries fell to 279,449, almost back to 2020 levels. 2026 isn’t going any better, with demand falling 15 percent to 60,991 cars in the first quarter. Faced with this new reality, Porsche is considering reducing production capacity to better cope with weak demand. Nevertheless, CEO Michael Leiters is confident that the company can still turn a higher profit despite the lower volumes. The goal is to focus on strong margins for existing and future products, even if that comes at the expense of total sales.
conversation with german newspaper Frankfurter Allgemeine ZeitungThe automaker’s boss made the situation clear: “Porsche has to make money even with fewer cars.” Even with reduced annual production planned, the portfolio is set to grow, including the return of the 718 sports cars: “We want to continue to attract new customers to the brand.” He didn’t elaborate, but it’s widely understood that the Boxster and Cayman will be offered with both combustion engines and fully electric drivetrains.
Photo by: Porsche
The future of three-row SUVs is uncertain
Faiz The future of the previously announced large three-row SUV positioned above the Cayenne is currently uncertain, the report says. Codenamed K1, the model was initially planned as a fully electric vehicle, before Porsche went back to the drawing board to add a combustion engine. Zuffenhausen is reportedly undecided on whether to proceed with a flagship SUV or not.
Elsewhere in the lineup, there could still be a new performance model positioned above the 911. Back in March, Porsche reported motor1 A hypercar is under consideration along with a new grand touring model, but the future of both depends on customer response. An update on how the lineup will evolve is expected this fall. We should also learn more about the new compact crossover set to replace the first-generation Macan, which goes out of production this summer.
Porsche also wants to deepen its relationship with Audi to reduce costs Faiz Leiters is quoted as saying that things have “spinned out of control” in recent years. The CEO declined to comment on new rumors suggesting further cuts to the workforce of between 2,000 and 4,000 employees. He said a new cost-cutting program was likely to be finalized before the normal summer holidays in July.
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Source: Porsche
Motor1’s Opinion: Porsche may be in a fragile state, but work is underway to change things through new products. Although the future appeared primarily electric at the beginning of the decade, a renewed focus on combustion engines would help draw ICE loyalists back to showrooms. The most significant volume model by far will be a new gas and hybrid crossover mechanically related to the Audi Q5.
It would also make sense for Porsche to develop that larger SUV. Such a model would likely do well in North America and the Middle East, where full-size luxury SUVs are highly popular. The company won’t need to start from scratch, considering this is the first Audi Q9 to break cover.
