Porsche has unveiled its new Sportwagenschmiede ’35 strategy, outlining the automaker’s plans through 2035 under CEO Michael Leiters. The strategy shifts Porsche away from its previous push to make most of its lineup electric and places greater emphasis on internal-combustion models, exclusivity and high-end vehicles, including a new mid-engine supercar.
Porsche Changes Course as Sales Decline
Porsche posted record sales early in the decade, but that momentum reversed in 2024, when sales fell 3%. The decline reached 10% in 2025, followed by another 16% drop through the first half of 2026.
At that pace, Porsche is on track to sell around 245,000 vehicles for the year, well below its record 320,221 sales in 2023.
The biggest pressure has come from China, which has become Porsche’s largest market in recent years. Sales there fell 32% during the first half of 2026 as local EV brands continued to dominate. North America also declined, with sales down 13% over the same period.
Porsche has also reduced its gas-powered lineup, including the top-selling original Macan and the 718 sports car line. The 911 has moved in the opposite direction, with global sales rising 19% during the first half of the year, highlighting the continued strength of Porsche’s core sports-car business.
New Porsche Supercar Will Use Combustion Power
Under the Sportwagenschmiede ’35 strategy, Porsche is not simply trying to recover lost sales volume. Instead, it plans to concentrate on more profitable high-end models and variants, which the company wants to eventually represent around 45% of sales.
Porsche is also targeting a break-even point of just 200,000 vehicles annually as it makes its operations leaner.
One of the most significant projects is a new mid-engine supercar positioned above the 911. Porsche has not announced a timeline, but it confirmed that development is already underway on a dedicated platform and that the vehicle will be powered solely by an internal-combustion engine.
That means the supercar will not simply use the platform of the Lamborghini Temerario, as Audi did with its Nuvolari supercar. Rumors from this month have also suggested Porsche could be considering a flat-eight engine for the model.
Porsche previously considered an electric hypercar for this segment and previewed that direction with the 2023 Mission X concept.
More High-End SUVs and Macan Successor Planned
Porsche is also investigating a high-end SUV positioned above the Cayenne. The model would replace an electric SUV previously planned by the automaker and could share a platform with the Audi Q9.
Meanwhile, Porsche is developing a successor to the gas-powered Macan. The new model is confirmed for a 2028 debut and will likely share a platform with the Audi Q5.
Early test mules have already been spotted. The vehicle will introduce a new nameplate and offer both pure combustion and plug-in hybrid powertrains.
Fewer Variants, More Exclusive Porsche Models
Porsche plans to add more high-end versions of the 911 while reducing the number of lower-end variants across its lineup. The automaker is targeting a 20% reduction in total model variants.
At the top of the range, Porsche plans to expand Sonderwunsch exclusive options and heritage offerings such as the recent Flachbau RS.
More vehicles developed with Manthey are also planned as Porsche increases its stake in the German motorsports and engineering group to 67%. The partnership will expand beyond current performance kits and exclusive track experiences to include complete vehicles produced in low volumes, a segment Porsche calls “few-off.”
Electric 718 Boxster and Cayman Still Moving Forward
Despite struggling with its electric vehicles, Porsche is continuing with electric versions of the 718 Boxster and Cayman. Sales of the Taycan have fallen to less than half its 2021 peak of around 41,000 units, but Porsche still sees a future for electric sports cars.
The electric 718 models will share their platform with an Audi electric sports car previewed by the 2025 Audi Concept C.
The electric Boxster and Cayman were originally expected around 2025 and were at one point thought to have been canceled. Porsche has now confirmed that 2028 will be the first full year on the market for the pair, suggesting sales could begin in 2027.
Porsche appears to have abandoned an earlier plan to modify the sports cars’ dedicated EV platform to accommodate an internal-combustion engine for high-end variants.
Porsche Plans 9,000 Job Cuts
The new strategy also includes a major workforce reduction. Porsche now plans to eliminate around 9,000 jobs, more than twice the 3,900 reductions previously planned.
The automaker is targeting a 25% reduction in its direct and indirect workforce in the medium term, with a longer-term goal of 30%. Management positions are also expected to be reduced by 40% as Porsche works toward a leaner organization.
Porsche Sets New Financial Targets
Porsche is targeting medium-term revenue of €41 billion to €45 billion ($46 billion to $50 billion), compared with €36.27 billion ($40.6 billion) in 2025.
The automaker also wants an operating return on sales of 10% to 15%, with a long-term goal of achieving a 15% operating margin. That compares with the 1.1% margin Porsche posted last year.
The Sportwagenschmiede ’35 strategy marks a significant shift in Porsche’s approach, combining continued investment in electric sports cars with a renewed focus on combustion-powered models, high-end variants, exclusivity and a leaner business structure.
