Michael Leiters has a plan. Appointed as CEO of Porsche in January, Leiters inherited a tricky situation after Porsche’s profits plummeted from the equivalent of $5.9 billion in 2024 to just $101 million for 2025. Porsche had invested heavily in electric vehicles only to find the market wasn’t quite ready to transition away from gas, and reversing that strategy proved costly. An increasingly competitive environment in China and new tariffs in the United States only added to the troubles.
But now Leiters is prepared to right the ship, announcing today in Stuttgart, Germany, a plan to restore the brand’s profitability over the next several years.
Dubbed Sportwagenschmiede ’35 (which roughly translates as "sports car craftsmanship”], the plan focuses on building on Porsche’s strengths: sports cars, a rich heritage, and exclusive, expensive vehicles. Leiters believes Porsche’s history of building sports cars gives it a unique position, and the company intends to leverage that through a series of new products.
Porsche previously hinted at a new supercar with the electric Mission X concept, but we think the potential new supercar could take a different approach.
Most notably, Porsche announced today that it is developing a potential mid-engine super-sports-car architecture, set to be previewed by a concept car called Mission S that will make its debut on October 15. Details remain sparse for now, but Porsche says this architecture would allow for a model line positioned above the 911 sports car.
First, though, Porsche has to plug two gaping holes in its current lineup, both caused by the recent discontinuation of long-running nameplates: the gas-powered Macan and the 718 Boxster and Cayman sports cars. In 2027, Porsche will finally launch the electric successor to the 718 two-seaters after years of delays. The 718 EV will come in both Boxster convertible and Cayman coupe forms and will serve as Porsche’s entry-level sports car.
While Porsche previously discussed bringing back gasoline engines for more exclusive, high-performance 718 models, it appears that plan has now been scrapped, with Leiters stating that the 718 will be electric only. We expect sales to start in the United States sometime late next year.
The discontinuation of the gas-powered Macan has created a gap in Porsche’s lineup.
Next, in 2028, Porsche will release a new compact SUV featuring internal-combustion engines. While previous rumors suggested this model could wear a new nameplate, Leiters consistently referred to the SUV as a Macan, and Porsche says it will be offered “in parallel with the current all-electric Macan.” Few details were provided on this next-generation gas-powered Macan, but the company did confirm it is being developed in conjunction with Audi and that it will offer both pure-gas and plug-in hybrid powertrains.
Later, Porsche will expand its lineup in the high-margin D and E segments, roughly equivalent to mid-size and full-size vehicles in U.S. parlance. Although Porsche didn’t provide specifics, the company says it is “exploring the possibility of an SUV in the D segment, positioned above the Cayenne.” Porsche previously announced plans for such a vehicle, code-named K1, first as an EV before later backtracking and saying it would have gas and PHEV setups.
The 718 EV will finally come next year.
There was little mention of new EVs aside from the 718 sports cars, but Porsche isn’t abandoning the segment. The company will take a multi-pronged powertrain approach, aiming for a ratio of two gas/hybrid models for every electric model in its lineup. Porsche says it is convinced of the long-term potential for EVs, but its strategy will be more balanced, and it will aim to reduce the cost of developing EVs by working with Audi. But Porsche purists don’t need to worry, as Leiters insisted that “the 911 will never be electric.”
Throughout the presentation, Porsche executives repeated the mantra “value over volume.” Porsche wants to lower its break-even point for profitability to below 200,000 units, and this will be achieved in part by selling each vehicle for more money, with the goal of raising the average selling price of its top-end models by 20 percent.
Much of this will happen through its high-performance GT cars and through Porsche’s individualization programs, which include Exclusive Manufaktur, where customers can choose unique paint colors and trim materials, and Sonderwunsch, where clients commission fully bespoke, one-off models. The current 911 GT3 commands a 53 percent price premium over a 911 Carrera, while the GT3 S/C sits at 95 percent above, but Porsche says in the future, GT products could cost more than 200 percent higher than a base 911.
Porsche is increasing its stake in Manthey Racing.
Along with its GT line, Porsche is increasing its stake in Manthey Racing to 67 percent, leading to more collaboration between the two companies on special performance kits and exclusive track experiences. Manthey Racing will even start creating limited-production vehicles—both street-legal and track-only cars—that differ even further from the Porsches upon which they are based than the company’s current aerodynamic kits, with the GT2 RS Clubsport 25 from 2021 serving as proof of concept.
When it comes to customization, Porsche wants to increase sales from its Sonderwunsch program sixfold in the mid-term. Sonderwunsch will continue to crank out few-off and one-off models, such as the Flachbau RS (pictured at top), and Porsche says 15 one-off projects are currently underway, ranging in price from the equivalent of $1.8 million to $15 million. Porsche will also expand its heritage services, which include recommissioning classic models such as the Carrera GT. Porsche has already restored and refreshed 11 Carrera GTs, with 16 more currently in the works and a further 21 planned. These recommissions cost the equivalent of about $506,000 to $845,000, not including the price of the car.
Porsche’s Sonderwunsch program will keep cranking out unique creations.
Leiters also wants to make Porsche more streamlined in an effort to cut costs. This more efficient approach will come both from product—with a goal of having around 20 percent fewer model variants—and structure, with plans to slash management positions by 40 percent and the overall workforce by 25 percent in the mid-term.
Porsche also wants to slash development costs for future models by up to 20 percent, by reducing development times through the increased use of simulations and a more modular approach, minimizing complexity across model lines, and increasing synergies within the Volkswagen Group and with suppliers. The company also wants to cut the materials costs for new vehicle projects by 10 percent and the sales and marketing costs by 20 percent. Between these cost reductions and a lineup focused more on exclusive and high-margin segments, Porsche sees a bright future ahead.
Caleb Miller began blogging about cars at 13 years old, and he realized his dream of writing for a car magazine after graduating from Carnegie Mellon University and joining the Car and Driver team. He loves quirky and obscure autos, aiming to one day own something bizarre like a Nissan S-Cargo, and is an avid motorsports fan.
Extracted and lightly reformatted for readability. · Source: pt