Porsche to shut down three subsidiary businesses: Strengthening focus on core business

Posted: Posted:May 9, 2026

New measures for strategic restructuring

Ah.

Well, just the other day, PorscheSell shares in Rimac GroupThey announced that, and yesterdayThe number of business divisions was reduced from eight to seven (and consequently, the number of executives was also reduced from eight to seven).They just made that announcement.

And now, today, further measures have been announced as part of a strategic restructuring.

The announcement was quite surprising: "The closure of three subsidiary businesses."

And with the termination of this project, a total of more than 500 employees will be affected (…which means layoffs, right?).

Porsche subsidiaries ceasing operations

The following companies are the subsidiaries that Porsche has announced will be discontinuing operations:

① Battery-related: Cellforce Group GmbH

Due to Porsche AG's strategic restructuring and its powertrain strategy that adopts a wide range of technologies, we have determined that Cellforce GmbH no longer has a promising long-term future.

To that end, management began discussions with the employee representative committee regarding the closure of the company.

This will affect approximately 50 employees.

② eBike drive system: Porsche eBike Performance

Porsche eBike Performance GmbH is a company established with the purpose of developing and selling high-performance electric bicycle drive systems to the global market.

However, due to a fundamental change in the market environment surrounding electric bicycle drive systems, this joint venture was discontinued.

This measure aligns with Porsche AG's strategic focus on its core businesses.

The closures of Ottobrunn and Zagreb's facilities will affect approximately 360 employees.

③ Software/Automotive Technology Related: Cetitec GmbH

Cetitec GmbH, based in Pforzheim, was a company that developed specialized data communication software for the Porsche and Volkswagen Group as a whole.

However, the scope of development has changed in line with changes in the market environment.

Therefore, Cetitec GmbH's management plans to begin discussions with the labor union regarding the company's closure.

Approximately 60 employees in Germany and 30 in Croatia will be affected.

Porsche will refocus on its core business.

Michael Leiters, CEO of Porsche AG, said:

"We must refocus on our core business. This is an essential foundation for the success of our strategic restructuring. To that end, we will have no choice but to make painful cuts, including to our subsidiaries."

It is said that.

Porsche has been involved in a wide range of businesses up until now, but given the current situation (business difficulties due to the sluggish Chinese market, the slowdown in the EV market, and US tariffs), I think now is precisely the time for them to decide to "focus on their core business."

It seems like Porsche is shifting its focus back to its core sports car business, adhering to its "Value over Volume" philosophy, and concentrating on highly profitable models.

While the EV strategy and other initiatives were certainly not something Porsche initially wanted to do, I don't think the current situation can be explained solely by complying with regulations or market changes. I hope that this restructuring, which involves various decisions, will put Porsche back on the right track as it has in the past.

Incidentally, Porsche AG's general shareholders' meeting is scheduled for June 23, 2026, so I'm wondering if various restructuring measures will be announced around that time. I wonder if anything else will be revealed before the general shareholders' meeting.

Or maybe we'll just have to make do with this for now...

Source:(Official) Porsche Sharpens focus on core business

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.

911Supercars in the article

-Porsche: Porsche
-Management information, main specifications, production volume, price list

カート好きの還暦 says:

2026年5月10日 at 4:49 PM

Hello!

Layoffs are accelerating.
While Audi's Q1 operating profit margin was 7.11 TP1T, down from 18% three years ago, other companies' profit margins were 3.21 TP1T, BMW 5%, Mercedes 3.51 TP1T, and Toyota's full-year profit margin for fiscal year 2025 was 7.41 TP1T.
Porsche is doing well, compensating for the decline in the 718 and Macan with the 911. Their strength lies in having models that compete on value rather than volume, and other manufacturers don't have a car like the 911. Porsche's profit margin per car is ¥1.7 million, overwhelmingly higher than BMW's ¥420,000 and Mercedes' ¥340,000, while Audi's is ¥200,000. Toyota's mass-produced cars have profit margins of only tens of thousands of yen.

The decline of brands other than Porsche is likely due to their struggles in China, or perhaps because they pandered too much to the Chinese market. Mercedes' exterior design, in particular, is a complete mess, and it seems unlikely they'll recover anytime soon. Toyota is also trying to further enhance the smartphone-like features of its cars for the Chinese market and aims to introduce China-specific models, but even BYD has seen a 55% drop in profit margins, so it's not going to be easy.
In the EU, environmental regulations are driving a focus on BEVs and PHEVs, while in North America, large SUVs are key, but BMW's XM and X7 haven't exactly been successful. So, what's the right answer?

The results suggest that the key factors are not only structural reform, but also having an appealing model and protecting the brand.

Reply
- Rika (911supercars.com) says:
  
  2026年5月13日 at 11:00 AM
  
  60th birthday who likes carts
  I hadn't looked at other manufacturers at all, but that's the situation, huh? Porsche had been doing so well up until now that when I saw their recent figures, I was like, "Wow..."
  
  I think Porsche has some really appealing models, and if they can successfully protect their brand in the future, I'm sure they'll continue to release wonderful Porsches to the world in a stable way.
  
  Reply

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