Porsche Is Cutting Production to 200,000 Units and Building a $574,000 USD Supercar Called the S1
The Sportwagenschmiede 2035 strategy includes 4,100 additional job cuts on top of 9,000 previously committed reductions.
Summary
Porsche announced a new strategic roadmap named "Sportwagenschmiede 2035" on October 7
The pivot includes a highly exclusive eight-cylinder flagship supercar internally dubbed the S1
The automaker planned to scale back annual production and cut one-fifth of its workforce
Porsche prepared to restructure its business model. Following a market downturn in China and an over-commitment to electric vehicles, the automaker shifted toward internal combustion and brand exclusivity. At a scheduled capital markets day on October 7, chief executive Michael Leiters announced a strategic update named Sportwagenschmiede 2035. Hosting dozens of investors at the development center in Weissach, Leiters outlined an operational shift designed to prioritize ultra-premium allure over mass-market scale.
The centerpiece of this combustion agenda is a planned flagship supercar. Internally referred to as the S1, the proposed model features an eight-cylinder boxer engine. While the brand built eight-cylinder boxer engines for race cars in the past, it never fitted one to a road-going production car. Speculation indicates the halo model shares fundamental design similarities with the Porsche 911. Those similarities stop at the price tag as the eight-cylinder flagship supercar carries an expected cost of approximately €500,000 EUR ($574,000 USD).
This move toward lower production volumes and higher exclusivity inverts the company’s recent trajectory. Under previous leadership, the firm targeted an annual production of between 350,000 and 400,000 vehicles. Now, Leiters intends to reduce that output to roughly 200,000 vehicles to restrict supply and elevate the prestige of the badge.
Slashing output to that degree requires a restructuring of human capital. A report by Handelsblatt claimed the strategic shift sees Porsche cut an additional 4,100 jobs. These impending layoffs supplement 9,000 previously committed job reductions, bringing the combined planned job cuts to roughly one-fifth of the total workforce. The supplementary headcount reductions are expected to reach completion by 2035, mirroring the timeline of the Sportwagenschmiede strategy as the brand actively shrinks its footprint.
