Porsche has announced a new business strategy aimed at revitalizing its operations after a difficult 2025, during which it saw a 10 percent drop in vehicle deliveries (279,449 units) and an operating margin of just 1.1 percent. In the first half of 2026, the company sold 122,306 vehicles globally, a 16 percent decline from previous years. The downturn has been especially sharp in China, where sales fell by 32 percent (14,501 units), and in North America, where they dropped by 13 percent (37,712 units), a crucial market for the brand. Michael Leiters, CEO of Porsche, unveiled the new strategy from the Weissach R&D center, outlining a plan to sell fewer but more expensive vehicles to restore profitability. Porsche aims to lower its break-even point to 200,000 vehicles per year by 2035. To achieve this, the average price of models will increase by 20 percent, while the number of variants will be reduced by 20 percent. The goal is to boost sales of the remaining models by 30 percent. The company also plans to speed up the development of future models, following a similar approach to that of the Volkswagen Group, of which Porsche is a subsidiary. Porsche intends to increase the share of products in segments D and E in its range up to 45 percent. In its classification system, the 911 and the Cayenne fall into segment D, which includes higher-margin products. The company is considering introducing an SUV in segment D, which would be positioned above the Cayenne. To reach these goals, Porsche plans to cut costs significantly, including reducing its workforce. By 2030, 9,000 positions must be eliminated, and 40 percent of management roles will be cut to improve decision-making speed and agility. The plan aims to return the operating margin to between 10 and 15 percent. Regarding the Chinese market, Leiters acknowledged the intention to create "a smaller but stronger and resilient business." China, which once accounted for about 35 percent of Porsche sales at its peak, now represents around 15 percent, and this share is expected to fall further. As a result, the manufacturer plans to reduce its sales network to between 75 and 80 sales points by the end of 2026, down from the current 150. Leiters confirmed that Porsche will continue to invest in internal combustion engines and plug-in hybrids while maintaining investments in electric technologies. He emphasized that "Strengthening our investments in combustion technologies does not mean disengaging from electric energy," but assured that "the 911 will never be electric."