Porsche CEO reveals plans to reduce production capacity.
Michael Leiters believes costs spiraled out of control.
The 718 Boxster and Cayman are still coming back.

Porsche posted its strongest sales year on record in 2023 with 320221 vehicles delivered globally. Conditions shifted quickly afterward. Intense competition from domestic brands hurt results in China while the Macan and 718 lines were withdrawn from Europe after missing updated cybersecurity rules.

Deliveries slipped to 279449 units in 2025, returning to levels last seen in 2020. The first quarter of 2026 brought a further 15 percent drop to 60991 cars. In response the company will lower annual capacity to match softer demand. CEO Michael Leiters nevertheless expects improved earnings by concentrating on higher margins across current and upcoming models rather than chasing higher volumes.

In comments to Frankfurter Allgemeine Zeitung Leiters stated that Porsche must remain profitable with fewer units sold. The model range will still expand with the return of the 718 sports cars offered in both combustion and electric forms to draw fresh buyers to the brand.

The Three-Row SUV's Future Is Undecided

Reports indicate that plans for a large three-row SUV above the Cayenne remain on hold. The project codenamed K1 began as an electric vehicle but later incorporated combustion powertrains. Management is now weighing whether to proceed at all.

A high-performance model positioned above the 911 is still under review alongside a new grand touring variant. Decisions on both will depend on customer input with further details expected this fall. Information is also anticipated on the compact crossover that will succeed the outgoing first-generation Macan.

Porsche intends to expand cooperation with Audi to lower expenses that Leiters said have grown excessively. The CEO offered no comment on speculation about workforce reductions of 2000 to 4000 people but noted that a fresh cost-cutting initiative should be completed before the summer break in July.

What do you think?

Motor1's Take: Porsche faces a challenging period yet continues to advance new products to restore momentum. Although the lineup appeared headed toward full electrification earlier this decade the renewed emphasis on combustion engines should help retain loyal customers. The upcoming gas and hybrid crossover sharing its platform with the Audi Q5 will be the key volume seller.

A larger three-row SUV would also fit well with strong demand in North America and the Middle East. Porsche could leverage the upcoming Audi Q9 to develop the model without starting from scratch.