Porsche looks positively to the future with its combustion engine strategy

Porsche believes it is still on course following the controversial decision to keep combustion models in the range for longer. "For me, it is not a reversal," said Production Board Member Albrecht Reinold in Leipzig. He spoke of additions to the product strategy that are intended to meet different market requirements. At the same time, Reinold made it clear that Porsche is sticking to electromobility. The electric strategy will continue to be pursued. "Sustainability will not leave us," he said.

Risk is a tradition at Porsche

Risks are part of the business for Reinold. "Porsche has to be successful," he emphasized. Every bold decision is also a risk. He cited the entry into SUVs in the early 2000s and the so-called "Mission E" as examples. This is a concept study with which Porsche presented a purely electrically powered sports car at the International Motor Show (IAA) in 2015.

Toolmaking in Schwarzenberg, Saxony, which Porsche took over from robot manufacturer Kuka around ten years ago, also plays an important role in production. "Taking over toolmaking from Kuka is one of the best decisions we have made," said Reinold. Porsche has thus secured its own know-how for press tools, which are required for the series production of new vehicles.

Saving without the customer noticing

At the same time, Reinold announced efficiency improvements. "Complexity that the customer does not see must be significantly reduced," he said. Cost work is crucial - but in such a way that the customer does not notice it.

Porsche had announced that it would keep combustion models in the range for longer than previously planned. This will result in special charges of around 1.8 billion euros, bringing the total cost of the Group's restructuring to a good 3.1 billion euros. CEO Oliver Blume spoke of "massive upheavals in the automotive industry" and referred to new market realities and customer requirements.

From the fast lane to the crisis

The burdens are pushing Porsche deep into the crisis: declining sales, especially in China and the USA, as well as US import duties caused the Group net profit to fall by more than 70 percent to 718 million euros in the first half of the year. Volkswagen and the parent company Porsche SE also lowered their forecasts due to the billion-euro burden.