CEO, Michael Leiters, is optimistic about concluding talks on a new cost-cutting plan soon. In an interview with Frankfurter Allgemeine Sonntagszeitung, Leiters said he hopes to have an agreement in place before the factory holidays in July. The move comes as part of Porsche’s strategy to reduce production and increase profitability by selling fewer cars.
Workforce changes
Porsche to operate at lower production capacities
Porsche has already announced plans to cut 1,900 jobs over the coming years. This comes after the company laid off 2,000 temporary workers last year. Leiters said Porsche will operate at lower production capacities than the nearly 280,000 cars it sold last year. “Porsche has to make money with fewer cars,” he told FAS.
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Strategic partnerships
Plans to work more closely with Audi
Along with the production cuts, Porsche also plans to work more closely with sister company Despite the challenges, the company will continue its entry-level 718 series. This comes as part of a broader strategy to navigate issues such as tariffs and geopolitical tensions that have affected profits in recent months.