Porsche, the "money printing machine for luxury cars", recently delivered its worst financial report in history. On the 24th local time, Porsche, a subsidiary of Volkswagen of Germany, released its latest financial report data. In the first nine months of this year, the company's operating income was approximately 26.86 billion euros, a year-on-year decrease of 6%. The loss in the third quarter reached 966 million euros (approximately RMB 8 billion).
Affected by this,In the first three quarters of this year, Porsche's sales profit was only 40 million euros, a 99% decrease from 4.035 billion euros in the same period last year.
Regarding the collapse in profits, Porsche noted,The first is special expenses related to product strategy adjustments; the second is the challenging market environment in China, especially the luxury car track; the third is "one-time" expenses related to battery activities; the fourth is organizational change expenses; and the fifth is the increase in U.S. import tariffs.
Among them, the biggest impact is the huge expenditures caused by Porsche's strategic adjustment: due to restructuring measures such as delaying the launch of pure electric models and ending the battery self-production plan, approximately 2.7 billion euros in additional costs were incurred.
Secondly, the sluggish performance of the Chinese market has also dragged down the overall performance. China was once Porsche's largest single market in the world, but it has begun to decline since its sales in China reached its peak in 2021. Sales in 2024 will plummet 28% year-on-year to 56,900 vehicles, and in the first three quarters of 2025, sales will drop another 26% to 32,000 vehicles.
In addition, the continued pressure from U.S. tariff policies has caused Porsche to incur additional expenses of 300 million euros in the first three quarters, and the company expects full-year losses to reach 700 million euros.
In this regard, Jochen Breckner, executive director of finance and information technology at Porsche AG, said in an interview,The U.S. tariff policy will cause Porsche a loss of about 700 million euros this year, and the company will raise prices for the U.S. market in the next few months.
In the face of current operating pressure, Porsche has started to optimize its organizational structure and plans to lay off 1,900 people in the next few years and cut 2,000 temporary positions this year. The second round of layoffs is expected to be announced before the end of this year.
