Porsche Says Its Business Model "No Longer Works"
The company is experiencing some difficulties with the shift to electric vehicles, as things are not going as planned. Add to that the crazy global context of tariffs and changing consumer habits in China, and you have an explosive mix.
In 2024, the company's global sales fell by 3%, even though tariffs had not yet been implemented. The situation has worsened this year, with sales down 6% compared to the first six months of 2024.
Things are not looking any brighter for the coming months. In fact, its recent decision to cut 1,900 jobs to reduce costs is clear evidence of this.
Keeping this in mind, the brand's CEO, Oliver Blume, informed employees of planned additional cost-cutting measures in response to declining sales in China and increased expenses caused by tariffs imposed by the Trump administration.
In an email obtained by Bloomberg and sent to staff, Porsche's CEO admitted that "the business model that has served us well for several decades is no longer working in its current form."
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