Porsche reported a steeper-than-expected operating loss in the third quarter, signaling deepening challenges for the German sports car maker as it navigates a slower-than-planned shift to electric vehicles (EVs) and mounting pressure in its key markets, especially China. The results underscore the struggles of a company once celebrated as the pinnacle of German automotive engineering.

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Key Highlights

• Q3 operating loss: 966 million euros ($1.1 billion)
• Analyst expectations: 611 million euro loss
• Revenue pressures in Europe, North America, and China
• CEO transition: Oliver Blume to hand over leadership to Michael Leiters in 2026
• Job cuts: 1,900 planned, plus 2,000 temporary layoffs this year

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Third-Quarter Loss Exceeds Expectations

The company posted an operating loss of 966 million euros in Q3, reversing last year’s 974 million euro profit for the same period. The decline was driven by expenses related to a major rollback of its EV expansion strategy, which includes the decision to scrap in-house battery production. Analysts polled by Visible Alpha had projected a smaller operating loss of 611 million euros.

Porsche’s performance was also weighed down by U.S. import tariffs, a relentless price war in China, and overall weakening demand across its three primary regions: Europe, North America, and China.

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EV Strategy Overhaul and Financial Impact

For the full year, Porsche expects a 3.1 billion euro impact on earnings from the EV strategy overhaul, covering:

• Restructuring costs
• EV expansion setbacks
• Cancellation of in-house battery production

Finance Chief Jochen Breckner described 2025 as a “trough” year but expressed optimism for a noticeable improvement in 2026. He cautioned that large-scale solutions would be needed in ongoing labour talks to stabilize operations.

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CEO Transition and Leadership Changes

Porsche CEO Oliver Blume, who also leads parent company Volkswagen, will hand over his role to former McLaren boss Michael Leiters at the start of 2026. The leadership transition follows investor criticism over Blume’s dual responsibilities and positions Leiters to tackle one of the most challenging crises in Europe’s auto sector.

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Workforce Reductions and Cost-Cutting Measures

The automaker plans further reductions in its workforce to control costs and adapt to shifting market conditions:

• 1,900 permanent job cuts planned over the coming years
• 2,000 temporary layoffs executed this year
• Potential additional reductions depending on market conditions

Breckner noted that general market conditions are unlikely to improve in the near term, making these measures necessary to stabilize the company’s financial outlook.

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2025 Outlook and Profitability

Despite a series of profit warnings, Porsche maintained its 2025 guidance, forecasting a return on sales of up to 2%, down sharply from 14% in 2024. The company is aiming for financial stabilization while transitioning its product lineup toward electric mobility and navigating challenging global markets.