Porsche cars are about to become 20% more expensive
What's the story
Porsche AG has announced plans to increase the average selling price of its top-of-the-range models by around 20% in the medium term. The decision was revealed at a Capital Markets Day event held at its Weissach Development Centre. The new strategy, dubbed "Sportwagenschmiede '35," comes as part of Porsche's efforts to sell fewer but more high-end cars and boost profits, after being hit by expensive electrification missteps and declining sales in China.
Market response
Stock value and workforce reduction plans
Porsche's stock value rose by as much as 5.1% in early trading in Frankfurt, giving the company a market capitalization of €40.4 billion.
However, it is worth noting that the shares have fallen by 3% since the start of this year.
The company plans to cut its workforce by 25% in the medium term, with a target reduction of 30%.
Management positions will be reduced by 40%.
Strategic shift
'Value over volume' principle and variant cuts
Porsche is sticking to its "Value over Volume" principle, focusing on making more money from each car instead of selling more.
The company plans to expand its Sonderwunsch program for highly customized cars and increase sales from it sixfold in the medium term.
As part of this strategy, Porsche also plans to cut model variants by about 20%, expecting a 30% increase in sales per variant.
Product expansion
New product developments and segment focus
Porsche is working on a mid-engined super sports car platform, which would be its first supercar since the limited-production 918 Spyder launched in 2013.
The company is also looking at an SUV above the Cayenne and plans to launch at least one new product each year by 2030.
These products will mainly be in high-margin D and E segments, with plans to increase their share in its range by about 45%.