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Porsche Can't Rely On Selling Cars Forever

Industry News / Comments

So, Porsche pencil sharpeners then?

There are few greater pleasures than blasting down a curvy road in a Porsche 911 with the sound of a flat-six engine screaming behind you. Porsche's sports cars are the heart and soul of the brand but in recent years, the German automaker has quickly learned it needs to build SUVs in order to survive. This reality is all too real and sadly, Porsche now admits it will eventually have to divest itself from cars even more in the future.

Speaking with Autocar, Porsche finance and IT boss Lutz Meschke said, "Cities want to reduce traffic, therefore we have to look for solutions which fit our brand. Shared mobility is not enough - it will not bring us significant profit share. If you want to get a piece of the cake, you have to think about investments in other brands or in traffic solutions. Just to talk about Porsche cars to get the right fit for future mobility, that's not enough. We must think about investments, start-ups, to get profitability in other businesses."

2020 Porsche 911 Carrera Front Angle View Porsche
2020 Porsche 911 Carrera Rear Angle View Porsche
2020 Porsche 911 Carrera Side View Driving Porsche

In short, there will come a time when the majority of Porsche's profits come from mobility solutions rather than traditional cars. "Today our customers are willing to buy two, three, four Porsches, but in the future, maybe they will buy one or two and for mobility in cities, they will use other services. We have to think about business models that can balance these potential losses," Meschke explained.

The Porsche Passport subscription program is a "good starting point," according to Meschke, but Porsche will need to expand its business elsewhere.

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"If 60% of people will live in major cities, then car sales in those cities will be reduced significantly. With our brand, we are limited. It will be a niche and we will not earn enough money to keep the profitability level at 15% (Porsche's margin aim) and that's the problem. We must think about new business models, not only with our own brand but with investments," he said. Porsche has already patented seats for use in an autonomous car and has even begun work on a flying car, illustrating that the company is already looking to a future after cars.

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Side View Porsche

Gallery

2020 Porsche 911 Carrera Front Angle View
2020 Porsche 911 Carrera Rear Angle View
2020 Porsche 911 Carrera Side View Driving
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