Porsche reported a larger-than-expected loss for the third quarter. The news shows how the German automaker has lost its way in recent months. This is mainly due to US import tariffs, and the price war that has raged in China. The group posted an operating loss of €966m (about R19.36bn), compared with a €974m profit in the year-ago period, hit by expenses to cover a major rollback on its EV expansion announced last month. Analysts polled by Visible Alpha had expected an operating loss of €611m in the July-to-September period.Porsche expects its profit margin to recover to a high single-digit percentage, finance chief Jochen Breckner said, versus a best-case scenario of 2% for this year, an outlook Porsche confirmed. “We expect 2025 to be the trough that precedes a noticeable improvement for Porsche from 2026 onwards,” Breckner warned, saying that current restructuring discussions with labor representatives needed to find large-scale solutions. Breckner said US import tariffs would result in a roughly €700m hit this year, adding Porsche would propose a significantly lower 2025 dividend than the 2.31 euros per preferred share paid for 2024. Breckner predicted that Porsche prices would rise in the US as the company passed on tariff costs to the consumers. Leiters is set to inherit one of the biggest crises in Europe’s beleaguered auto sector.As for China, once a key profit driver for Porsche and parent Volkswagen, Breckner said sales are expected to extend this year’s decline into 2026. “We have to assume that the general market conditions will not improve in the foreseeable future,” Breckner explained.Porsche plans to eliminate 1,900 positions in the future, and 2,000 jobs for temporary workers have already been cut this year. A new package of measures is expected at the end of the calendar year. Breckner replied that Porsche had been negotiating the second package of cost saving measures. “significant measures” Instead of focusing on job cuts, the company focused more on salaries and other perks. Following a series of profit warnings this year, the carmaker maintained its 2025 guidance on Friday, forecasting a return on sales of up to 2% – down from 14% last year. For the whole year, Porsche expects a €3.1bn hit to earnings from its EV strategy overhaul, a decision to scrap in-house battery production and restructuring costs.
2025-10-27 12:05:00
Crisis-hit Porsche plunges to $1.1bn quarterly loss
