Porsche has wrapped up 2024 with record sales in four of its five biggest markets and came close to last year’s cashflow high. That momentum comes from a major lineup shake-up. Porsche revamped five of its six models—giving the Cayenne, Panamera, Taycan, 911, and the electric Macan a fresh update. Each one landed in global markets. While EVs are growing, Porsche sees a longer road ahead for gas-powered and hybrid models. Instead of rushing the transition, it’s adding more combustion and plug-in hybrid options alongside its electric lineup. Porsche CEO Oliver Blume says, “In view of the changed circumstances, we have adjusted our product strategy in all segments. And we further developed our proven and successful Porsche strategy over the course of last year to make the company even more flexible, robust and high-performing.” Read More Jay Leno Gives Us a First Look at $2.1 Million McLaren W1 Porsche Stays Strong as Profits Dip in 2024 Porsche’s numbers took a hit in 2024, but things could have been worse considering the circumstances. The brand brought in €40.1 billion in revenue, just short of last year’s €40.5 billion. Operating profit slipped to €5.6 billion from €7.3 billion, bringing the operating return on sales down to 14.1% from 18.0%. Cashflow, though, stayed solid at €3.7 billion, only slightly below the 2023 record of €4.0 billion. Why the dip? A slow Chinese market, supply chain issues, and a lag in the global shift to EVs all played a role. On top of that, Porsche spent big on refreshing its lineup. Five of six model lines got an update, which isn’t cheap. The company made up for some of the losses in smart ways. More buyers opted for customized models, and Porsche tweaked pricing on new releases to keep margins in check. “In 2024, Porsche has proven that we are highly profitable even in challenging times and that we are financially robust,” said Dr. Jochen Breckner. Porsche Expands 911 Lineup and Evolves Its SUV Strategy Along with new variants, the 911 is getting collector’s models that bring back the style of the ‘70s. A flagship 911 is also in the works. The Macan has officially gone electric, and Porsche is sticking with that decision. Customers are on board, and once the gas-powered version is retired, the Macan will be an EV-only model worldwide. But that doesn’t mean Porsche is walking away from combustion engines. A new SUV model line is being explored, offering hybrid and traditional powertrains. If it gets the green light, expect it toward the decade's end. The Cayenne is evolving, too, as sales hit an all-time high in 2024. The next generation is already in development, with an electric version planned alongside gas-powered models that will stick around into the 2030s. Once the electric Cayenne is out, the all-electric 718 sports car will follow. Read More This £65k British EV Sports Car Weighs Under a Tonne and Challenges Porsche Beyond new models, Porsche is doubling down on customization. The Exclusive Manufaktur programme now offers over 1,000 options, while the Sonderwunsch programme lets buyers create one-off factory-built cars. Revenue from custom models has doubled in five years. Inside the company, things are shifting too. Dr Jochen Breckner has taken over Finance and IT, and Matthias Becker now leads Sales and Marketing, replacing longtime executives Lutz Meschke and Detlev von Platen. Around 1,900 jobs will be reduced by 2029, with another 2,000 to be decreased as fixed-term contracts expire. Talks are ongoing about further workforce reductions. The Road to 20 programme is keeping Porsche focused on the bottom line. It helped offset market challenges in 2024, and in 2025, the focus will be on cost-cutting and profitability. Porsche Invests €800 Million in Rescaling Porsche plans to pump €800 million into rescaling operations this year, expanding its lineup, and advancing software and battery tech. “The extensive rescaling of the company as well as the investments we will be making will have a negative impact on the result for the 2025 financial year,” said Dr Breckner. The company expects operating return on sales to drop to 10-12%, down from 2024. China’s automotive market is more competitive than ever, global trade policies are shifting, and geopolitical uncertainty looms over key markets. Despite the rough year ahead, Porsche is playing the long game. The company still aims to push past 20% operating return on sales. For now, it’s targeting a more realistic 15-17% in the medium term. “We are consciously setting out on a comprehensive recalibration and sustainably strengthening Porsche for the future,” Dr Breckner said. Source: Porsche
