Porsche shifts to pricier models in turnaround plan

Porsche outlined a turnaround strategy on October 7 that puts higher-priced, more exclusive models ahead of sales volume, as the automaker seeks to restore profitability while preparing for lower annual sales and job cuts. The plan, presented to investors under the name Sportwagenschmiede 35, sets a future break-even point below 200,000 vehicles a year, compared with 279,449 deliveries last year. Porsche plans to raise average prices for its top-end models by about 20%, to more than €330,000 by the end of the decade from roughly €270,000 this year. The company also aims to make its most exclusive models a larger share of its lineup and is developing a new model positioned above the 911, according to the strategy presented by Chief Executive Michael Leiters. The company plans to cut about 9,000 jobs by 2035, a reduction described in several accounts as roughly one-fifth of its workforce. One report said the cuts could reach 30%, but the available details do not clarify how that figure relates to the 9,000-job plan. Porsche has also agreed with unions on the workforce reduction, according to reporting on the investor presentation.