Porsche’s quarterly profit has plunged 91%, prompting a strategic shift as the company doubles down on combustion engines alongside electric and hybrid models.
Porsche reported a sharp 91% drop in operating profit in its vehicle business for the second quarter, falling to €154 million from €1.7 billion a year earlier. Revenue declined by nearly 13% to around €8.3 billion. The downturn was largely attributed to falling deliveries in China, high conversion costs, and U.S. import tariffs.
In response, CEO Oliver Blume announced a strategic shift, reaffirming the long-term role of combustion engines alongside hybrid and electric models. Blume acknowledged that, with hindsight, the company might have approached the balance between powertrains differently, noting that while EV adoption has exceeded expectations, overall market volume remains limited.
Porsche will continue to develop combustion and hybrid versions of existing models like the Cayenne and 911, invest in synthetic fuels, and maintain its focus on electromobility.
Restructuring costs reached €200 million in the first half of 2025 and are expected to total €1.3 billion for the full year. Around 1,900 jobs will be cut in Stuttgart by 2029, with further savings planned. Blume will continue to serve as CEO of both VW and Porsche during the restructuring, though no timeline has been given for the transition.
