Latest news with #PorscheCarsNorthAmerica
Yahoo
6 days ago
- Automotive
- Yahoo
Porsche Admits Trouble Ahead: 'Our Business Model No Longer Works'
Porsche Admits Trouble Ahead: 'Our Business Model No Longer Works' originally appeared on Autoblog. Porsche, the brand that once thrived on profit margins as crisp as the handling of a 911 on a damp B-road, has delivered a brutal wake-up call to its own workforce. In an internal communication first reported by Bloomberg and later confirmed by Reuters, CEO Oliver Blume told employees that the company's traditional business model is no longer sustainable in the current climate. 'Our business model, which has served us well for many decades, no longer works in its current form,' Blume 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. 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 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 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 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 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. Porsche Admits Trouble Ahead: 'Our Business Model No Longer Works' first appeared on Autoblog on Jul 24, 2025 This story was originally reported by Autoblog on Jul 24, 2025, where it first appeared.
Auto Blog
6 days ago
- Automotive
- Auto Blog
Porsche Plans More Cuts Amid Critical Sales Dip and Tariff Hit
Porsche is pumping the brakes According to a new report published by Bloomberg, German performance powerhouse Porsche is planning another round of sweeping cost cuts as it grapples with declining sales in key markets and the impact of U.S. tariffs. In a memo to Porsche employees seen by the financial publication, Porsche CEO Oliver Blume warned its employees that it will start negotiations on additional reductions during the second half of this year, noting that it is following through on a promise to find more cost savings after it let go of a significant number of employees. 'Our business model, which has served us well for many decades, no longer works in its current form,' Blume said. Porsche factory — Source: Porsche Porsche's latest moves come as it grapples with a complicated sales picture in some of its biggest markets. During the first half of 2025, Porsche sales in China, its biggest market outside the U.S., saw an eye-watering 28% percent dip during the first half of this year. The company attributed this shift to fierce competition in the luxury and electric-vehicle segments led by homegrown automakers like BYD. Despite this, Porsche Cars North America (PCNA) said earlier this month that it broke a sales record in its results through the first half of this year, as it saw retail deliveries of 38,696 vehicles through the first half of 2025. In a statement, Porsche Cars North America President and CEO Timo Resch attributed the 11.4% year-over-year increase to the 'passion' of its customers. 'Despite a volatile market, our sales remained strong and interest in our cars continued to grow, in large part because of the outstanding customer experience delivered by our Porsche Centers,' Resch said. 'Our commitment to choice is driving our success, with a mix of ICE, hybrid, and fully electric cars contributing to these results. While there may be uncertainty across many industries at the moment, it's been great to see that the passion amongst customers continues to thrive.' However, in its memo to Porsche employees, Porsche CEO Oliver Blume noted that President Trump's tariff-centric trade agenda would have a significant impact on its margins, as nearly all of its U.S.-bound vehicles are imported from the European Union. According to a July 18 report by the Financial Times, Trump is said to be pushing for a 15-20% minimum tariff on all goods imported from the EU. 'All of this is hitting us hard — harder than many other car manufacturers,' he said. Source: Porsche Porsche is already planning double-digit headcount cuts The new developments also come on the back of additional cost-cutting measures that it announced earlier this year. Back in February, Porsche announced that it was going to let go of 1,900 employees by 2030 in response to slumping EV demand and 'challenging geopolitical and economic conditions.' Specifically, it said that it plans to offer employees at Zuffenhausen and Weissach voluntary offers like early retirement and severance packages and will take a 'restrictive approach' to new hires in an effort to reduce staffing numbers by 15% by 2029. Final thoughts According to a new report by the Financial Times, President Trump plans to keep EU car sector tariffs at 25%, even if the bloc and the Trump administration work out a trade deal. Currently, the administration is said to be willing to work out a minimum 10-15% tariff on all EU-imported goods. Given that nearly all Porsche models sold in the United States are imported from factories in EU member states, the impact of tariffs alone could have serious implications for its bottom line if they do not raise prices or take any proactive actions. About the Author James Ochoa View Profile
Associated Press
07-07-2025
- Automotive
- Associated Press
Porsche 911 Club Coupe celebrates seven decades of Porsche Club of America
A total of 70 units will be produced for sale and will be distributed between the United States and Canada. The new Club Coupe is based on the much-loved 911 Carrera T. Thus, it comes exclusively with a flat-six engine making 388 hp mated to a six-speed manual transmission including a walnut shift lever, and an extensive list of performance-enhancing equipment, including the PASM Sport Suspension with a 10 mm lower ride height compared to a standard 911 Carrera, and a mechanical limited slip differential with Porsche Torque Vectoring (PTV). The Porsche Parade is an annual weeklong event organized by the PCA and held at different locations each year in celebration of the marque. It serves as a destination for PCA members and brand enthusiasts to congregate around their shared passion for Porsche. The event includes autocross and concourse competitions, rallies, exhibits and informational events. 'Passion drives Porsche – pure and simple. PCA members are some of the most passionate, not just in our little world but across the auto industry in general,' said Timo Resch, President and CEO of Porsche Cars North America. 'The sense of community and excitement they create is unmistakable, so it is an honor and a privilege to create a special model celebrating 70 years of the PCA.' Beyond its inherent performance credentials, the new Club Coupe is a visual standout thanks to its Paint to Sample Sholar Blue paint finish – a new metallic take on the Club Blau paint which was first used in 2015 on the second iteration of the PCA Club Coupe. The new color is a result of many iterations and collaborative discussions between the Style Porsche, Exclusive Manufaktur, and the PCA since the beginning of 2023. A standard SportDesign front fascia with red accents, and 20/21-inch RS Spyder wheels finished in Satin Black with Brilliant Silver accents give the car an even sportier appearance. Meanwhile, the Club Coupe logo on the doors in Brilliant Silver, the rear 911 decal in Brilliant Silver, and grille slat inlays in Guards Red pay homage to the PCA signature colors. The standard Vanadium Grey mirrors of the Carrera T model are instead painted in Sholar Blue to bring in even more of the special color. Finally, a special '70 year PCA' grille badge offers a subtle nod to the tradition these cars carry forward. The interior is just as special. Upon opening the doors, you are greeted with illuminated door sills with the 'PORSCHE CLUB OF AMERICA' illuminated lettering in the specific font as well as a door projector with the PCA 70 year logo. A black leather interior with deviated stitching in Speed Blue and Guards Red continue the motif along with seat belts and the steering wheel 12 o'clock marker in Guards Red. Other custom interior flourishes courtesy of Porsche Exclusive Manufaktur include the PCA 70 year logo embossed on the center console lid and a 'Club Coupe' logo on the dashboard trim. An extended equipment package is available as an option and adds popularly specified content to the car. The package includes tartan fabric seat centers in a specific PCA 70 year pattern, plus stitching in Speed Blue and the leather seat release pull loop in Guards Red. The leather owner's manual wallet also gets Speed Blue stitching and bears 'Club Coupe 70 Years Porsche Club of America' embossment. The key is painted in Sholar Blue and comes in a black leather key pouch with Speed Blue stitching and an embossed Club Coupe logo. Exclusively for owners of the Porsche 911 Club Coupe, Porsche Design created the Chronograph 1 - 911 Club Coupe. Handcrafted in Solothurn, Switzerland, this limited-edition timepiece features unique design elements that are inspired by the 911 Club Coupe and brings 70 years of Porsche Club of America heritage to the wrist. The COSC-certified chronograph is equipped with the Porsche Design caliber WERK 01.140. The clear sapphire crystal case back shows the rotor in the wheel design of the 911 Club Coupe in Satin Black and Brilliant Silver with the monochrome Porsche Crest as a center cap. The matte black dial with white hour indices with Super-LumiNova® luminous material features a 'Club Coupe' model designation and 'PORSCHE CLUB OF AMERICA' lettering. Owners will have the option to wear the timepiece with a titanium bracelet or textile Velcro strap in Porsche Club of America colors with PCA branding. 'Porsche Exclusive Manufaktur make dreams come true every day,' said Aaron Ambrosino, President of the Porsche Club of America. 'This car is a symbol of what the PCA, the world's largest club for Porsche owners, stands for. We are excited that every unit will go to PCA members and look forward to seeing them at events for many years to come.' The newest Club Coupe brings with it an impressive standard equipment list that includes a Sport Exhaust system, mechanical limited slip differential, Porsche Active Suspension Management (PASM) Sport chassis, rear axle steering, the Sport Chrono package, and a GT Sport steering wheel. The brakes of the current 911 Carrera T are also upgraded compared to the predecessor model with six-piston fixed calipers on the front axle and four-piston calipers on the rear axle, both squeezing 350 millimeter vented and cross-drilled brake rotors. Perhaps most importantly, the car is a deliberate nod to the enthusiasm for driving that the PCA embodies. Because it is based on the current 911 Carrera T, it focuses on the essentials of driving joy: minimal weight, a manual transmission and an especially capable chassis that begs to be driven. The first example of the new 911 Club Coupe, which is not part of the total 70 unit run, will be added to the Porsche Museum collection. The second example will be raffled off to the PCA, and all subsequent models will be initially offered for sale to PCA members. Production will begin this fall and run through spring, 2026. Pricing will be announced in due course. History of PCA special editions: The PCA Club Coupe tradition began in 2005 when Porsche created a 50-unit limited run of the 911 Carrera S Club Coupe (997.1 generation) to celebrate its semi-centenary anniversary. The debut occurred at the Porsche Parade in 2005 in Hershey, Pa. The first car was part of the 2005 model year and went into the Porsche Museum collection. The next unit was the first-ever car to be offered as a raffle prize to PCNA members, and all subsequent examples were offered for sale within the club. The original 911 Club Coupe had stainless steel doorsills with the 911 Club Coupe logo, a badge on the driver's side door trim indicating its individual number in the series of 50 cars, and an X51 Powerkit that increased added 26 hp and 11 lb.-ft. of torque to the 3.8-liter, flat-six cylinder of the Carrera S. Azurro California metallic – a modern interpretation of Azure Blue, a color made popular on Porsche 356 sports cars when the PCA was founded 50 years prior – put the finishing touch on this very special model. A decade later, Porsche commemorated the 60th anniversary milestone with yet another special model: the 911 Carrera GTS Club Coupe. The debut happened at the newly opened Porsche Experience Center Atlanta in January, 2015 with a subsequent showing at Porsche Parade in French Lick, Ind. in the summer of that year. This 60-unit, limited-production model was based on the contemporary 911 Carrera GTS (991.1 generation), and benefitted from both the chassis and powertrain enhancements of the time including the wider body of the 911 Carrera 4. Its naturally aspirated 3.8-liter flat six generated 430 hp and could accelerate from a standstill to 60 mph in 3.8 seconds when paired with the seven-speed PDK transmission. Perhaps most notably, the car came finished in Club Blau, a newly created color special to the GTS Club Coupe. A ducktail rear spoiler also contributed to the striking appearance of the car, along with 20-inch wheels painted in semi-gloss black with polished wheel centers. Attachments Frank Wiesmann Porsche Cars North America, Inc. 404.539.5031 [email protected] Luke Vandezande Porsche Cars North America, Inc. 470.363.5001 [email protected]
New Straits Times
15-06-2025
- Automotive
- New Straits Times
Porsche unveils one-of-a-kind 963 RSP
A one-of-a-kind 963 RSP, unveiled last week by Porsche AG, is a street-legal road car derived from the formidable 963 LMDh Le Mans prototype. The car is a tribute to motorsport legend Roger Penske, whose initials form the name of the car. The 963 RSP was influenced by the trailblazing 917 and an audacious drive that took place half a century ago. It made its debut on the streets near the Circuit de la Sarthe alongside the car that inspired its creation. A team from Porsche, Porsche Penske Motorsport and Porsche Cars North America worked in partnership with Penske as they prepared the car for the 24 hours of Le Mans. "This really started out as a 'what if?' – a passion project by a small team of enthusiasts at Penske and at Porsche who together imagined a version of the 963 that really resembled as closely as possible the spirit and appearance of the Count Rossi 917," said Porsche Cars North America president and chief executive officer Timo Resch. Resch, who conceived of the original idea, said the 917 from the story was every inch a race car, albeit one driven on the road. "We took the same approach with the 963 RSP. It uses beautiful materials of the best quality available, but is still every bit a race car underneath," he added. The 963 RSP features significant changes over the car on which it is based. Unlike the competition racecars, which are wrapped in different colours, the 963 RSP is the first of its kind to be painted; a unique challenge due to the nature of the carbon fiber and Kevlar bodywork which is ultra-thin in places to save weight. In a nod to the Count Rossi 917, the 963 RSP is finished in Martini Silver and features uniquely altered bodywork and a bespoke tan leather and Alcantara interior inspired by the trim choices made by Count Rossi 50 years ago. A dedicated mechanical and electronic setup were configured for its debut on the streets near Le Mans, including a raised ride height and softened dampers, as well as a reprogrammed control unit to allow for the headlights and taillights to operate closer to those of a road car. These changes along with modified bodywork to cover the wheel arches, the use of Michelin wet weather compound tires and even the fitment of a horn meant the car met the necessary criteria to be allowed to drive on the road and wear licence plates under special permission from the French authorities and with the enthusiastic support of the Automobile Club de l'Ouest, which runs the 24 Hours of Le Mans race. "That was an experience that will stay with me for a lifetime," said Timo Bernhard, who was at the wheel of the 963 RSP for its first miles on the road. "Driving down a public road with a 917 beside me, it felt unreal. The car behaved perfectly, it felt a little friendlier and more forgiving than the normal 963, and felt super special and a lot more comfortable, especially as I was not needing all my safety gear." Penske, who is chairman of Penske Corp, said it had enjoyed a terrific relationship with Porsche dating back to 1972. "The Porsche 917/30, in particular, was one of the greatest eras in Team Penske history with numerous wins and championships, along with the closed-course speed record set by Mark Donohue in 1975. "With such a remarkable partnership continuing to this day, we felt it was time to create the most exciting car we could imagine," he added. Penske said just like the 917, he had wanted this car to be authentic to its origin and have as few changes to it as possible. "When we got into the project, the differences in the two generations of race cars provided a great challenge. What emerged is a car that has lost none of its edge and is exciting whether on the track or on the road," Penske said. The 963 RSP was on public display at the Circuit de la Sarthe during the 24 Hours of Le Mans before returning to Stuttgart to be shown at the Porsche Museum. In July, the car will appear alongside the 917 at the Goodwood Festival of Speed.
NDTV
22-05-2025
- Automotive
- NDTV
Porsche To Retire 718 Boxster And Cayman, Production Ends In October
Porsche has now announced the retirement of its petrol-powered 718 Boxster and Cayman. The 718 duo was facing troubles for the past year, but it is now that we know that the 718 Boxster and the Cayman will be off the production line in October. Previously, Porsche had delisted the 718 Boxster and the Cayman from the Indian website and stopped taking bookings for the duo. As per Motor1, Frank Wiesmann, Product Communications, Porsche Cars North America, stated that the Porsche 718 Boxster and the Cayman are in the final stages of production, after which it will come to a full stop in October. Porsche 718 Boxster and the Cayman were earlier pushed off the European market due to some cybersecurity concerns, back in 2024. However, the Boxster RS Spyder and Cayman GT4 RS continue in the European market as they were limited edition sports cars, and were exempted from the regulations. Porsche is not in a hurry to fill the gap after the discontinuation of the 718 duo, as the planning of its electrified iteration is still underway and will be revealed about a year later. The electrified iteration of the Boxter and Cayman is expected to be built on the same production line as the ICE models at Porsche's Zuffenhausen plant. Also, Porsche has previously said that it will be phasing out the Macan in 2026. Though it may feel like a piece of sad news for the petrol heads, there is still hope, as, according to reports, Porsche's former Chief Financial Officer, Lutz Meschke, mentioned the possibility of the originally planned all-electric vehicles getting a hybrid drive or a combustion engine.
