Porsche Faces 99% Profit Drop Amid Plans to End Gas Macan
Porsche is facing significant challenges in the automotive market as it prepares to phase out several internal combustion engine (ICE) models. With a staggering 99% drop in operating profit during the first nine months of the year, the company has announced plans to discontinue the current gas-powered Macan by mid-2026.
Porsche’s Profit Decline and Future Plans
During a recent earnings call, Porsche revealed that its operating profit plummeted from over €4 billion in 2025 to just €40 million in 2026. This dramatic decline is attributed to various factors, including market conditions in China and the impacts of rising global tariffs, which are projected to cost the company approximately €700 million this year.
Sales Performance and Model Transitions
Despite the profit drop, Porsche reported deliveries of 64,783 units in the first nine months. However, sales revenue also fell by 6%. As part of its product realignment strategy, the company will phase out the ICE-powered Macan and focus on introducing an updated version in the future.
- The current Macan will remain on sale into 2026.
- Production may extend into 2027 based on inventory levels.
- A second-generation Macan will offer both conventional and plug-in hybrid powertrains.
Phasing Out the 718 Series
The iconic 718 Boxster and Cayman models are also nearing the end of their production run, with assembly winding up later this month. Porsche plans to maintain a limited inventory to bridge the gap until the next-generation sports cars arrive.
Strategic Shift Towards Electrification
Porsche is realigning its strategy to bolster its electric vehicle (EV) offerings while also retaining ICE options. Dr. Jochen Breckner, Finance and IT Board Member, emphasized the brand’s commitment to a diverse powertrain lineup, stating, “Starting in 2028, a more balanced drivetrain offering will further strengthen our market position.”
- The redesigned 718 series will include ICE versions.
- The new Macan is expected to be based on the Audi Q5 platform.
As the company navigates these challenges, it is increasing vehicle prices to maintain margin levels. Despite the current difficulties, Porsche noted a slight increase in automotive net cash flow, growing from €1.24 billion to €1.34 billion. This indicates robust operational resilience despite unfavorable market conditions.
In summary, Porsche is embarking on a transformative period as it ends the gas-powered Macan and the 718 series. The focus will shift towards hybrid and electric models, while still catering to traditional combustion engine enthusiasts.
