“The 911 will never be fully electric.” With these words, Porsche CEO Michael Leiters made one of the clearest statements during the presentation of the German sports car maker’s new strategy. Called Sportwagenschmiede ’35, the plan is designed to strengthen Porsche’s identity as a sports car manufacturer while reducing complexity, focusing on higher value products and giving customers more choice when it comes to powertrain technology.
Presented at Porsche’s Capital Markets Day, the strategy marks a significant change in direction for the company. Rather than pursuing growth through an ever larger number of models and derivatives, Porsche says it will concentrate on what it considers the most important products, while reinforcing its position in the sporty luxury and high end premium segments.
Value over Volume
The central idea behind the new strategy is summed up by two words: “Value over Volume”. The principle is not new for Porsche, but Sportwagenschmiede ’35 places it at the centre of the company’s future product strategy.
Porsche plans to reduce the number of model variants by around 20 per cent. At the same time, the company expects the average sales volume per model variant to increase by around 30 per cent in the medium term. The objective is to reduce the complexity of the portfolio and concentrate development and production resources on the products considered most important for the brand.
At the same time, Porsche wants to strengthen its presence in the higher segments of the market. The company is targeting an increase of around 45 per cent in the share of D and E segment models within its portfolio in the medium term.
The strategy also sets an ambitious product cadence. By 2030, Porsche plans to introduce at least one new brand defining product every year. The objective is not simply to expand the range, but to make every new addition contribute to the identity and desirability of the brand.
New models from 2028
The first major steps will come in 2028. Porsche has confirmed that the 718 Boxster and Cayman will become fully electric, marking another important stage in the company’s electrification strategy.
At the same time, Porsche will introduce a new B segment SUV. Unlike the electric Macan, the new model will be offered with internal combustion and plug in hybrid powertrains, giving customers another option within the smaller SUV segment.
The company is also preparing further products aimed primarily at the D and E segments. Among the most significant announcements is the development of a mid engined super sports car architecture that could support a future model positioned above the 911.
Porsche is also considering the possibility of an SUV positioned above the Cayenne in the D segment. Unlike the 718 and the new B segment SUV, however, this remains an option under consideration rather than a confirmed production model.
The 911 will remain different
Perhaps the most significant message from the presentation concerns Porsche’s approach to powertrains. The company is not abandoning electrification, but it is also not treating battery electric technology as the only possible solution for its future cars.
Porsche will continue with a three pronged powertrain strategy, covering internal combustion engines, plug in hybrids and fully electric powertrains. The company says it will continue investing both in combustion engine and plug in hybrid technology and in the next generation of battery technology.
This approach reflects a point repeatedly emphasised by Leiters during the conference: customer preferences are developing at different speeds depending on the region and the vehicle segment. Porsche therefore wants to retain the flexibility to offer different technologies rather than imposing a single solution across the entire range.
That philosophy is particularly relevant to the 911. During the presentation, Leiters made it clear that Porsche’s iconic sports car will not follow the same path as the electric 718.
“The 911 will never be fully electric,” Leiters said.
The statement does not mean that the 911 will remain untouched by electrification. The current generation has already demonstrated Porsche’s approach with the hybridised 911 Turbo S, showing how electrification can be integrated into the sports car without turning it into a fully electric vehicle.
More exclusive, fewer derivatives
The new strategy is also about making Porsche more exclusive. Alongside the reduction in the number of model variants, the company wants to expand its individualisation activities and strengthen programmes aimed at customers looking for more personalised cars.
One of the main areas of focus will be Sonderwunsch. Porsche plans to increase sales from the programme sixfold in the medium term, reinforcing its role within the company’s strategy for greater exclusivity and individualisation.
Porsche will also bring its activities in Performance, Exclusiveness and Heritage together under the umbrella term Home of Sports Cars. The structure includes activities such as Manthey, Sonderwunsch and Exclusive Manufaktur, alongside Porsche’s heritage operations.
The move reflects a broader objective behind Sportwagenschmiede ’35: Porsche wants to strengthen the elements that distinguish it from other premium manufacturers and make the brand more clearly identifiable as a sports car manufacturer.
A leaner Porsche
The changes will not be limited to the product portfolio. Porsche also intends to simplify its organisation and make development and production more flexible.
The company is targeting reductions of up to 20 per cent in development costs for future models, up to 30 per cent in production personnel costs and around 20 per cent in sales and distribution costs. Management positions are expected to be reduced by 40 per cent in the medium term, while the overall workforce is planned to decrease by around 25 per cent.
The intention is to create a faster and less complex organisation capable of responding more quickly to changes in the market while allowing Porsche to focus its resources on its core business.
That organisational change is closely linked to the product strategy. Fewer derivatives should mean a simpler portfolio, while greater volumes per variant should allow Porsche to use its development and production capacity more efficiently.
A return to the core of Porsche
The name Sportwagenschmiede ’35, literally referring to a sports car forge, is therefore more than a label for a new corporate plan. It reflects the direction Leiters wants Porsche to take over the coming years: a manufacturer focused on sports cars, performance, craftsmanship and the customer experience, while remaining flexible enough to use different technologies.
The strategy does not represent a rejection of electric mobility. The electric 718 and the existing Macan show that battery electric vehicles will remain an important part of Porsche’s portfolio. At the same time, the company is making it clear that electrification will not replace every other technology overnight.
Instead, Porsche is betting on a more selective product portfolio, fewer derivatives, more high end models and a broader range of powertrain technologies.
And at the centre of that philosophy remains the 911. For Porsche, the message from Michael Leiters could hardly be clearer: the future will be electric in parts of the range, hybrid in others and still powered by combustion engines where the company believes they remain relevant. But the 911, at least according to the new strategy, will not become a fully electric sports car.
