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Porsche warns of tough year ahead after torrid 2025
Sports car-maker Porsche warned Wednesday of a tough year ahead after its profit virtually vanished in 2025 amid cut-throat competition in China, a costly pivot back to petrol cars and US tariffs.
Sales would fall slightly to between 35 and 36 billion euros ($40.6 billion and $41.8 billion) this year, Porsche said, projecting a profit margin of between 5.5 and 7.5 percent — far below the double-digit figure the luxury firm used to reliably deliver.
“We’re going through tricky times at Porsche right now,” the firm’s new CEO Michael Leiters told a press conference. “We’re neither living up to our own expectations nor to those of the market.”
Porsche has struggled with years of plunging sales in China amid fierce competition from local rivals as well as US tariffs imposed by President Donald Trump.
US tariffs have hit the firm particularly badly since it has no plants in the United States.
It also booked a one-off 3.1-billion euro hit last year after saying it would continue to sell petrol cars for longer than previously planned thanks to patchy demand for electric models.
“Market conditions have visibly changed,” Leiters said. “Customers in Europe are making the transition more slowly than we had expected and other markets like the USA have made a political and regulatory choice to go in the other direction.”
For 2025, Porsche’s core profit fell 93 percent to 413 million euros while sales fell about 10 percent to 36.3 billion euros.
Further cost-cuts would be necessary on top of 3,900 job cuts already announced last year, Leiters said.
“We need to tighten up our structures and streamline our organisation even further,” Leiters said. “Yes, that will also involve further job cuts,” he added.
Porsche’s parent, the 10-brand Volkswagen Group, said on Tuesday that 50,000 jobs would go group-wide in Germany by 2030, including 35,000 already agreed at its namesake brand.
The post Porsche warns of tough year ahead after torrid 2025 appeared first on Vanguard News.
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