Introduction
Porsche, one of the leading automobile manufacturers in the German-speaking region, is currently facing several challenges. These developments are of interest both to investors and to the automotive industry as a whole.
Challenges and Strategic Adjustments
Decline in Sales and Operating Margin
In the first quarter of 2025, Porsche sales fell by 8 percent. The operating margin is expected to be only between 6.5 and 8.5 percent in 2025, which is significantly below the originally planned ten to twelve percent.
Shift to Combustion Production
After an initial focus on electric mobility, Porsche is now placing greater emphasis on combustion engine models again. This strategic shift is a response to the declining demand for electric vehicles and issues with battery procurement.
Competition in China
The Chinese market poses a significant challenge, as new competitors are entering the market, which could further weaken Porsche’s market position in China.
Financial Developments
Dividend Reduction
Porsche Automobil Holding SE has decided to reduce the dividend for the fiscal year 2024. The new dividend is 1.91 euros per preferred share and 1.904 euros per common share.
Share Price Decline
The share of Porsche SE has lost value, which is attributed to the ongoing challenges within the company. The dividend yield fell from 7.04 percent to 5.24 percent.
Leadership and Strategy
Management Restructuring
CEO Oliver Blume has restructured the board and appointed Michael Steiner as the new deputy, indicating a strategic realignment.
Shareholder Pressure
Some shareholders are calling for the resignation of CEO Oliver Blume, indicating dissatisfaction with the current corporate strategy.
Overall, it shows that Porsche is facing significant challenges. The company’s comeback depends on its adaptability and a successful strategy.