Germany’s iconic sports-car maker Porsche AG has reported the worst quarterly loss in its history, signalling a dramatic turn for a company once considered a benchmark of automotive profitability.
Between July and September, Porsche recorded an operating loss of €967 million, far exceeding analysts’ expectations of roughly €600 million.
For the first nine months of the year, the company’s operating profit collapsed from over €4 billion to just €40 million, a staggering 95.9 percent decline year-on-year.
Massive restructuring expenses
Chief financial officer Jochen Breckner said the weak results reflect “the financial burden of strategic realignment.” Porsche is currently reshaping its production strategy, delaying new electric-vehicle platforms and scaling back its in-house battery program in favour of a renewed focus on combustion and hybrid models.
The company cited restructuring costs of around €1.8 billion as the main driver of the quarterly loss. Combined with planned personnel measures, total extraordinary expenses for 2025 are projected to reach €3.1 billion.
Breckner defended the move as a long-term investment: “We accept temporarily weak figures to strengthen long-term profitability.” Porsche aims to leave the downturn behind by 2026, under incoming CEO Michael Leiters, who will replace Oliver Blume.
Pressure from China and the United States
Porsche’s crisis is being exacerbated by slumping sales in China, where demand for luxury cars has weakened amid slower economic growth.
At the same time, high U.S. import tariffs have weighed on results, costing the company several hundred million euros.
While Porsche’s revenues and deliveries fell by only about six percent, profit margins have all but disappeared. The company delivered 212,069 vehicles from January to September, generating €27 billion in revenue.
Jobs and margins under strain
Earlier this year, Porsche announced plans to cut 1,900 jobs. Management and labour representatives are now negotiating an additional cost-saving programme that could extend the reductions.
“We must assume that market conditions will not improve in the foreseeable future,” Breckner said, adding that “broad measures” were needed to secure employment and stability.
Outlook: from super-profit to survival mode
For the full year, Porsche still expects revenues between €37 billion and €38 billion, but forecasts an operating margin of only up to 2 percent – a fraction of the 15 percent margins that once made it Germany’s most profitable automaker.
Analysts see 2024 as a transitional year in which Porsche’s costly pivot and weak global markets collide. Whether the brand can regain its former status will depend on how fast its new strategy — balancing traditional combustion engines with delayed electrification — can deliver returns.
