Porsche Records an Abysmal Loss of One Billion Euros

AUTO: Porsche suffered a loss of almost a billion euros in the third quarter, a direct consequence of delays in its electric models and a costly strategic reorientation

The strategic shift of Porsche has cost the company dearly. Indeed, the German manufacturer, based in Stuttgart, recorded a huge financial loss of almost a billion euros between July and September, weighed down by delays in launching its electric vehicles and by the costly overhaul of its product portfolio.

Over the first nine months of the year, the brand’s operating profit only reached 40 million euros, compared to one billion in the first half. Clearly, the third quarter ended with a loss of around 960 million euros. A poor performance that financial director Jochen Breckner attributes to the changes in direction imposed on the brand. “This year’s results reflect the impact of our strategic reorientation”, he explained, stressing that “these measures are essential”.

Postponement of several electric car launches

This “reorientation” marks a partial return to thermal engines and hybrids, faced with sluggish demand for 100% electric models. In September, Porsche had already announced the postponement of several electric launches and the extension of the lifespan of certain thermal engine models. A decision with serious consequences for its parent company, the group Volkswagen, which recognized a negative impact of 5.1 billion euros on its annual operating profit due to this reorganization and lower profit targets.

Competitive pressure remains strong, particularly in China, Porsche’s largest global market, where local electric vehicle brands are gaining ground. And the absence of factories in the United States further weakens the manufacturer, subject to customs duties imposed by Donald Trump. According to Jochen Breckner, these taxes have already cost the company more than 500 million euros.