ポルシェが今後の製品戦略の再編について発表

Details of Porsche's upcoming product strategy restructuring announced

Porsche has announced a restructuring of its future product strategy.

The company says it will be restructuring its product strategy in the medium to long term to respond to major changes in the automotive industry, and that this decision will result in a more flexible and balanced lineup that combines internal combustion engine vehicles (ICE), plug-in hybrid vehicles (PHEV), and electric vehicles (BEV).

Here's a quick summary of the restructuring announced:

The product lineup will include a new model equipped with the brand's signature internal combustion engine (ICE).
The new SUV series (known as K1), which will be positioned above the Cayenne, was originally planned as an all-electric vehicle, but given the market environment, it will initially be offered only as an internal combustion engine (ICE) or plug-in hybrid (PHEV).
Existing internal combustion engine vehicles will continue to be sold for a longer period than before, and development plans for next-generation models have been added for these vehicles.
The timeline for the development of a new electric vehicle platform, originally planned for the 2030s, has been rescheduled.
We will continue to improve and update electric vehicle models (BEVs) already on sale.
These measures are intended to support future financial performance, but are expected to result in a significant increase in depreciation and provisions in the short term.

Porsche aims to achieve a positive impact on its medium- to long-term financial performance through these restructuring measures, according to Porsche CEO Oliver Blume.

"Today we have taken the final step in realigning our product strategy. The automotive industry is facing significant change. That is why Porsche is realigning its entire company to better meet new market conditions and evolving customer needs, while delivering great products to our customers and solid financial results to our investors."

Now, let's take a closer look at the details of this announcement, which I summarized at the beginning.

A new, iconic internal combustion engine vehicle

The product lineup will include a new model equipped with the brand's signature internal combustion engine, and this is said to be a new SUV model that will be even higher than the Cayenne, currently called the ``K1.''

Given the market environment, the K1 was originally planned as an electric vehicle, but at launch it will only be available as an internal combustion engine or plug-in hybrid.

It seems that they have taken the bold step of removing the EV version from the new model, which was announced to be an EV model.

In addition, current models such as the Panamera and Cayenne are scheduled to continue to be sold as internal combustion engine and plug-in hybrid vehicles until the 2030s.

It seems that development plans for next-generation successor models for these models have also been incorporated into the cycle plan.

Some electric vehicle models will be released later.

On the other hand, the spread of electric vehicles has been slower than expected, so the release of some pure electric vehicle models will be delayed.

In particular, the development of a new electric vehicle platform, which was planned for the 2030s, has been rescheduled and will be technically redesigned in collaboration with other brands within the Volkswagen Group.

This is in response to the significant slowdown in growth in demand for battery electric vehicles (BEVs).

However, the existing electric vehicle lineup will continue to be updated, so it is said that attractive BEVs will continue to be offered in the future, including the Taycan, Macan, Cayenne, and the 718 segment of EVs that are scheduled to be released in the future.

Oliver Blume says:

"This decision builds on previously announced initiatives and helps us achieve a well-balanced product portfolio, which increases our flexibility and strengthens our position in the current highly volatile market environment. We aim to meet the wide range of customer needs through an effective combination of internal combustion engines, plug-in hybrids and battery electric vehicles. In the medium term, this approach will support our business model and make us even more competitive in the market."

Revised financial forecast for fiscal 2025

At the same time, Porsche expects to incur significant additional costs due to changes in the external environment, including US import tariffs, a slump in China's luxury car market, and a slowdown in the adoption of electric vehicles.

Porsche believes that the strategic restructuring envisaged in its cycle plan will only be able to partially offset these burdens, and therefore is currently aiming to increase its operating profit margin to double digits (up to 15%) in the medium term.

This figure is at the lower end of the previous target range.

Changes to the development schedule for the new electric vehicle platform are expected to result in a charge of up to 1.8 billion euros to operating profit in 2025 due to the need to record depreciation and provisions. This charge is not reflected in Porsche's current forecast for 2025.

In light of this situation, Porsche has also decided to revise its financial forecast for fiscal year 2025, and the revised outlook for fiscal year 2025 is as follows (changes from the previous forecast are in red):

Sales: 37 billion to 38 billion euros (previous forecast: 37 billion to 38 billion euros)
Profit margin on sales:Slightly positive up to 2%(Previous forecast: 5-7%)
Automotive division net cash flow margin: 3-5% (previous forecast: 3-5%)
Automotive business EBITDA margin:10.5–12.5%(Previous forecast: 14.5-16.5%)
BEV share in the automotive sector: 20-22% (previous forecast: 20-22%)

For fiscal 2025, the Board of Directors plans to propose a dividend payout ratio that significantly exceeds the medium-term target of approximately 50% of the Group's profit after tax (IFRS basis), but the actual dividend amount is expected to be significantly lower than the previous year.

The final decision on the dividend amount is still under discussion by the relevant committee.

Jochen Breckner, Member of the Board of Management for Finance and IT at Porsche AG, emphasized:

"With this clear plan, we are repositioning the company for long-term success in a challenging world. We understand that these strategic investments will put a strain on our short-term performance, but they are necessary. These measures will further enhance our brand identity, enhance the appeal of our products and strengthen the resilience of our company."

Overall, Porsche expects to incur special charges of approximately 3.1 billion euros in 2025 in connection with its strategic realignment.

This will include measures currently underway, as well as adjustments to already-decided product strategies, battery business, and organizational changes.

The restructuring is also expected to result in further cash outflows over the next few years.

Disclaimer

This press release contains forward-looking statements and information that reflect Dr. Ing. hc F. Porsche AG's current views about future events. These statements are subject to many risks, uncertainties, and assumptions. materializes or if the assumptions underlying any of the forward-looking statements prove to be incorrect, the actual results may be materially different from those Porsche AG expresses or implies by such statements. Forward-looking statements in this presentation are based solely on the circumstances at the date of publication. We do not update forward-looking statements retrospectively. Such statements are valid on the date of publication and can be superseded. This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities.

Source:(Official)Porsche AG sets final steps in the realignment of its product strategy

Rika (911supercars.com)

I'm Rika, the author of this article. Since I got my hands on a Porsche 911, I've been completely hooked on Porsches and I can't stop loving them, so I started this blog. My favorite cars are the 911 Carrera (2/991), 911 Carrera Cabriolet & 911 Carrera T (1/992), GT3 (1/997) and 718 Cayman GT4 RS.