
Porsche Admits Trouble Ahead: 'Our Business Model No Longer Works'
This sobering admission sets the tone for a forthcoming round of cost-cutting talks, with Porsche now preparing for a serious overhaul of its production structure, spending priorities, and long-term strategy. Labor negotiations are expected to begin later this year — and if the last round of restructuring is anything to go by, the fallout could be substantial.
0:06
/
0:09
Audi A5 replaces A4: So, what's changed?
Watch More
Source: Porsche
North America Up, China Down
To the casual observer, this warning might seem surprising. After all, Porsche's North American division just posted its best-ever half-year sales figures. Deliveries rose 11.4% year-over-year, with 38,696 vehicles shifted in just six months. CEO of Porsche Cars North America, Timo Resch, credited the growth to customer enthusiasm and the strength of the dealer network.
But the bigger picture is far less rosy. Globally, Porsche is still down 8% on sales in Q1, and much of that downturn is being driven by a stunning 42% sales drop in China. The world's largest car market, once a reliable growth engine for the German automaker, has become a liability amid rising protectionism, weak consumer confidence, and a fiercely competitive EV sector.
Tariffs, Taycans, and a Tense Transition
Layered atop the China crisis is the ongoing problem of profitability. Porsche has already slashed its full-year profit outlook, now forecasting margins between 6.5% and 8% — well below its historical average of 12–15%. The company is feeling the squeeze from multiple sides: rising U.S. tariffs, fluctuating foreign exchange rates, and the capital costs of an underperforming EV transition.
Sales of the all-electric Taycan — once positioned as Porsche's halo EV — have stumbled dramatically. And while the newly launched Macan EV has been well-received in North America, the global appetite for high-priced electric performance cars is proving more volatile than expected.
Blume hasn't minced words about the road ahead. Porsche is expected to move away from its prior goal of 80% electric vehicle sales by 2030, and more investment will be reallocated to hybrid and combustion powertrains. It's a dramatic pivot for a brand that only a year ago appeared all-in on electrification.
What Happens Next?
Porsche's warning comes at a pivotal moment not just for the company, but for the industry at large. With global demand for EVs cooling and trade politics turning up the heat, even luxury stalwarts aren't immune to the turbulence. Porsche's leadership says further announcements about structural changes will follow later this year.
What's clear is that Stuttgart's favorite export is entering a period of reinvention. The badge might still carry weight, but in an industry where costs are rising, EV dreams are stumbling, and global trade is a geopolitical minefield — even Porsche has to rethink how it stays in the black.
About the Author
Max Taylor View Profile
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Auto Express
28 minutes ago
- Auto Express
New Porsche 911 Speedster promises thrills as it keeps its GT3 heart
A brand-new version of the Porsche 911 Speedster has been spied testing with a collection of elements that give away its identity. We expect that it'll be the brand's latest Heritage Design special edition, arriving some time later this year or early next. It's not often that Porsche pairs one of its high-revving GT3 engines with a convertible bodystyle, but every generation or so it does just that with this limited-run and highly sought-after model. The first element that gives away the new Speedster's identity is the rear bumper, which features the same centrally mounted twin pipes as the GT3. This suggests that under the unique engine cover is a 4.0-litre flat-six engine that's naturally aspirated and connected to either a seven-speed dual-clutch or six-speed manual transmission. These gearboxes are also unique to the GT3 models and its derivatives. Advertisement - Article continues below Look closer and you'll see that more of the bodywork is shared with the latest 992.2-generation GT3, including the front bumper and vented bonnet. The front wings and their air-foils ahead of the front wheels are borrowed from the 911 ST, and like the bonnet are made of lightweight carbon fibre. The ultra-geeky will also note the traditional pull-style handles, which suggest the doors are also from the 911 S/T. Skip advert Advertisement - Article continues below The windscreen and folding fabric roof look to be the same as those fitted on regular 911s, instead of the lowered-windscreen arrangement found on previous Speedsters. This is due to tough crash-safety regulations in the USA, and the costs associated with developing a new folding roof mechanism. Inside, we expect to see a collection of elements from the latest 992.2-generation GT3, including its unique carbon-fibre bucket seats and the latest digital interfaces – potentially with unique graphics in the same style as the green dial font on former Heritage Design models. As always with Porsche's Heritage Design cars, the Speedster will launch with a unique livery, plus a launch colour and trim package that might reference an iconic model from the past. The last Speedster, specifically of the 991.2 era, featured a Guards Red exterior colour, matching that of the original 930-generation Speedster alongside a more contemporary GT Silver option. These are rare cars, so while it might be tricky to find a Speedster, make sure you check out our other Porsche 911 listings through Auto Express Find a Car. The Speedster has never been an inexpensive 911, and we suspect it'll be the same this time around. A price well over £200,000 is expected, making it a good £50,000 more than the standard GT3. Now you can buy a car through our network of top dealers around the UK. Search for the latest deals… Find a car with the experts Hyundai reduces prices across its entire EV range Hyundai reduces prices across its entire EV range Korean brand acts swiftly to cut prices on all its electric cars, amid confusion over Government's grant scheme Congestion Charge EV exemption removal to generate over £75million per year Congestion Charge EV exemption removal to generate over £75million per year TfL is planning to raise the Congestion Charge to £18, and EV drivers will have to pay too Dacia's baby EV due in 12 months with a tiny £15k price tag Dacia's baby EV due in 12 months with a tiny £15k price tag Dacia's new model will be developed in double-quick time, and it'll be built in Europe to avoid China tariffs


Scottish Sun
28 minutes ago
- Scottish Sun
Inside Golf Force One…Trump's modified cart coated with armour & bulletproof glass protecting him from fairway assassins
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) DONALD Trump's security entourage deployed a highly modified golf buggy to protect the prez from fairway assassins while he played his favourite sport. The all-black bond-style cart, dubbed Golf Force One, is said to be a $28,000 security fortress that comes with reinforced armour and a bulletproof glass shield. Sign up for Scottish Sun newsletter Sign up 11 The £20,000 cart can hit speeds of 65mph and has been adapted with toughened windows, reinforced panels Credit: TOM FARMER 11 The armoured cart and 26 others followed Trump around the course Credit: Robert Perry/PA Wire 11 President Donald Trump during his round of golf at Turnberry Golf Club, Ayrshire in Scotland Credit: Reuters 11 It was debuted by Trump's security Team as he played a round of Golf at Turnberry in Ayrshire. The visiting leader took to the historic course after jetting to Scotland on Friday for a five-day trip. While the president was seen driving a standard white-framed buggy around the course, a unique buffed-up cart followed his fleet of 28 vehicles. It is said to be a modiefied Polaris NorthStar Edition which has been fitted with hardened tinted windows and reinforced panels. The vehicle, which can sit six people, is believed to have state-of-the-art security protection - including smoke screens, electrified door handles and armoured plates. Gary Relf, director of Armoured Car Services, The Telegraph: "ust looking at the front windscreen, that looks armored. 'The windscreen is a giveaway, as are the side panels, doors and the large panel at the rear above the load tray.' Experts say the jet-black tinted windows indicate layers of protective laminate - typically used to prevent bullets in case of a shootout. Mr Relf added that it was likely the modifications would be designed to keep the vehicle as secure as possible while remaining lightweight enough to avoid damaging grass on the course. The all-wheel-drive mini beast comes with a twin Cylinder dual overhead cam engine that can reach upto 65mph. A source told The Scottish Sun: 'Trump was zipping between holes on a regular cart with this huge thing following behind. I was inches from death as Trump rally gunman shot at president – moment I shielded my pregnant wife fearing the worst 'His bodyguards were staying close and were ready to zoom off if he had to dive in. 'The cart is an amazing bit of kit. 'It has massive chunky tyres, what looked like a winch on the front and even has space at the back for his clubs. 'Americans love their motors and Trump seems no different — this thing was bigger than some of the compact cars you see on the road here.' Donald Trump blasts 80s chart-topper from golf buggy DONALD Trump pressed play on an iconic eighties track yesterday as he played golf in Scotland. The US President teed off his five-day visit with a round at his Turnberry resort, accompanied by a massive security team. Angry campaigners waved creative signs in Aberdeen and Edinburgh as the American leader enjoyed a round of golf at his luxury Ayrshire resort. But this didn't get the leader of the free world down as he breezed past them while listening to Billy Joel's 1983 hit Uptown Girl. Also on President Trump's playlist was Memory from the Andrew Lloyd Webber musical Cats, All Out of Love by Air Supply, Unchained Melody by the Righteous Brothers and Bridge Over Troubled Water by Simon and Garfunkel. After surviving two assasination attemps - including one that almost took his life - Trump's security team seem to be well-prepared to thwart a third attempt. The MAGA prez last year survived a dangerous assassination bid while playing golf at the National Golf Club in West Palm Beach, Florida. The suspect, who was able to get within 400-500 yards of Trump and even attempted to flee the scene in an SUV has been named as Ryan Wesley Routh, 58. He was arrested after Secret Service agents saw someone they suspected of aiming a weapon from nearby bushes. 11 Specialist Rifle Officers ahead of a visit by US President Donald Trump to his Trump Turnberry golf course in South Ayrshire, during his five-day private trip to the country Credit: PA 11 A defiant Trump showing a thumbs up after the attack that shook US politics Credit: Getty 11 The former president took cover after the shots as the Secret Service drew their weapons Credit: Getty 11 The MAGA prez last year survived a dangerous assassination bid while playing golf at the National Golf Club in West Palm Beach, Florida. Credit: The Mega Agency Just two months previously, Trump was left wounded when a would-be assassins bullet nicked his ear as he spoke at a rally in Butler, Pennsylvania, in July. Shooter Thomas Matthew Crooks, 20, fired off eight shots from an assault rifle before he was taken out. A US government spokesman said: 'The US Secret Service employs a variety of tools and resources to safeguard our protectees. 'In order to maintain operational security, the Secret Service does not discuss the specific means and methods used to conduct our protective operations.' Over the weekend, Trump was seen enjoying golf at Turnberry in Ayrshire. Hillarious footage showed the moment Trump's golf caddy appeared to drop his ball into a prime spot before he takes his shot. Trump, 79, was seen being escorted down to the course, with a convoy of 20 other carts following close behind. The caddies went ahead of the US leader and one appeared to secretly place a golf ball on the ground. The brash New Yorker - whose mother was born in Scotland - then got out and claimed to have made the shot himself. One person who watched the footage circulating on X wrote: "Caddy did that so smoothly. Can only imagine how many times he's done it." "I want to know how he finds caddies to do that for him," added another. 11 Footage appeared to show a caddy drop the President's ball in a prime spot Credit: X / RoguePOTUSStaff 11 Donald Trump made an appearance at his Trump Turnberry golf course Credit: Shutterstock Editorial


Reuters
29 minutes ago
- Reuters
Thailand and Cambodia agree to ceasefire after five days of fighting
PUTRAJAYA, Malaysia, July 28 (Reuters) - Cambodia and Thailand agreed to an "immediate and unconditional ceasefire" from midnight (1700 GMT) on Monday, in a bid to halt their deadliest conflict in more than a decade after five days of fierce fighting that has displaced more than 300,000 people. After days of efforts by Malaysia, chair of the ASEAN regional bloc, the United States and China to bring both sides to the table, the two countries' leaders agreed to end hostilities, resume direct communications and create a mechanism to implement the truce. At least 36 people have been killed in the fighting, mostly civilians. Following more than two hours of talks at his official residence in Putrajaya, Malaysian Prime Minister Anwar Ibrahim, flanked by Thai and Cambodian leaders, said he was ready to deploy a team to observe and ensure implementation. "This is a vital first step towards de-escalation and the restoration of peace and security," he told a press conference. "All parties shared a commitment to peace." The Southeast Asian neighbours have wrangled for decades over border territory and have been on a conflict footing since the killing of a Cambodian soldier in a skirmish late in May, which led to a troop buildup on both sides. A full-blown diplomatic crisis brought Thailand's fragile coalition government to the brink of collapse. They accuse each other of starting the fighting last week, both quickly deploying heavy artillery at multiple points along their 800-km (500-mile) land border. Thailand flew air raids with an F-16 fighter jet. U.S. President Donald Trump called both leaders at the weekend, warning he would not conclude trade deals with them unless they ended the fighting. Both sides are facing a steep import tariff of 36% on their goods in the U.S., their top export market. Cambodian Prime Minister Hun Manet thanked his acting Thai counterpart Phumtham Wechayachai for what he said was a positive role and said he deeply appreciated Trump's "decisive mediation" and China's constructive participation. "We agreed that the fighting will stop immediately," he said, expressing confidence that both sides could rebuild trust and confidence. "The solutions proposed by Prime Minister Anwar will set the conditions for moving forward with bilateral discussions, returning to normalcy, and forming the foundation for future de-escalation." Responding to the ceasefire, White House spokeswoman Karoline Leavitt said Trump "made this happen". "Give him the Nobel Peace Prize!" Leavitt posted on X. Tensions boiled over last week after Thailand recalled its ambassador to Phnom Penh and expelled Cambodia's envoy, in response to a second Thai soldier losing a limb to a landmine that Bangkok alleged Cambodian troops had recently laid. Cambodia has strongly denied the charge, as well as Thai accusations that it has fired at civilian targets including schools and hospitals. Hun Manet last week accused Thailand of "unprovoked and premeditated military aggression". Thai leader Phumtham, who had expressed doubts about Cambodia's sincerity, said Bangkok had agreed to a ceasefire that would be "carried out successfully in good faith by both sides". "Today's outcome reflects Thailand's desire for peaceful resolution by continuing to protect our sovereignty and the life of our people," he said, thanking Trump and Malaysia. The fighting has scarred border communities on both sides. In Thailand's Sisaket province, a house lay reduced to splintered wood and twisted beams after being struck by artillery fire from Cambodia. The roof had caved in, windows hung by the frame and power lines drooped over the structure. Amid the din of occasional artillery fire, homes and shops remained shut and a four-lane road was deserted except for a few cars and military vehicles. Dozens of displaced residents lined up quietly for their evening meal at an evacuation centre about 40 km away from the frontlines. A few children played with dogs, others swept the dusty floor. Fifty-four-year-old Nong Ngarmsri just wanted to go back to her village. "I want to go to my children who stayed back," she said. "I want them to cease firing so that I can go home."