Dr. Ing. h.c. F. Porsche AG operates in the automotive and financial services sectors across Germany, Europe, North America, China, and other international markets. It procures, develops, manufactures, and sells vehicles and related services. The company also provides leasing, dealer and customer financing, mobility services for Porsche brand vehicles, and other finance-related services. Formerly known as Porsche Fünfte Vermögensverwaltung AG, it changed its name to Dr. Ing. h.c. F. Porsche AG in November 2009. Founded in 2009 and headquartered in Stuttgart, Germany, it is a subsidiary of Porsche Holding Stuttgart GmbH.
Porsche exits Bugatti Rimac, but VW's profit warning and job cuts weigh
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Porsche completes €1bn Bugatti Rimac exit, raises cash flow outlook Porsche sold its Bugatti Rimac and Rimac Group stakes for about €1bn and raised its 2026 automotive net cash flow margin guidance to 5.5–7.5% from 3–5%. More cash and a higher forecast support the shares, though the one-off gain is not recurring profit.
This is the main positive event of the period, directly improving Porsche's cash position and guidance.
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Volkswagen writes down Porsche by €6bn, cuts group profit outlook Parent Volkswagen took a €6bn writedown on Porsche and slashed its 2026 group profit margin forecast to 1% from 4–5.5%, citing China weakness and restructuring. The writedown signals Porsche's earnings power is weaker than expected, pressuring its shares.
This is the biggest negative driver, directly linking Porsche to VW's profit warning and asset impairment.
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VW supervisory board approves ~4,100 additional job cuts at Porsche Volkswagen's board approved cutting about 4,100 more jobs at Porsche to close a €700m overhead savings gap. The cuts show deep cost problems and pressure to shrink, which can hurt morale and brand strength, though they may improve long-term profitability.
This is a concrete new restructuring step that directly affects Porsche's cost base and workforce.
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Morgan Stanley keeps Porsche at Underweight in European auto review Morgan Stanley maintained an Underweight rating on Porsche while upgrading Renault and keeping Overweight on Mercedes and BMW. The analyst view signals Porsche may lag peers, which can weigh on investor sentiment and demand for the stock.
This is a fresh analyst opinion that directly influences how investors see Porsche relative to competitors.
Q3 2026
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Porsche Q3 2026: China Slump, Job Cuts, VW Writedown
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China demand collapse Porsche's China deliveries plunged over 30% in the first half, dragging global sales down 16% to a six-year low. China is a key market, so this weakness weighed heavily on the stock.
China weakness was a major negative force on Porsche's price during the quarter.
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Massive job cuts and restructuring Porsche announced roughly 9,000 job cuts by 2035, with 4,100 more approved in September. These cuts aim to reduce costs but signal deep restructuring and near-term uncertainty.
Job cuts reflect cost pressures and restructuring that weighed on investor sentiment.
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VW writedown and profit guidance cut Parent Volkswagen took a €6bn writedown on Porsche and cut group profit guidance. This underscored Porsche's struggles and added pressure on the stock.
The writedown and guidance cut highlighted financial strain and negatively affected Porsche's shares.
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Profit rise and Bugatti exit boost cash H1 operating profit rose 34% to €1.35bn with a 7.8% margin, and the €1bn Bugatti Rimac exit lifted 2026 cash-flow guidance to 5.5–7.5%. These positives partly offset the negative news.
These were the main counterweights that provided some support amid otherwise negative drivers.
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Electrification & Mobility▼impact 4
Porsche Bets on Gas Engines as EV Sales and China Deliveries Slump
Porsche is betting that a return to gas-powered vehicles will drive its turnaround, but the pivot may not be enough to fill a costly near-term gap. CEO Michael Leiters, in place since January, plans to bring back a combustion-engine Macan to sell alongside the electric version, though not until 2028, after the outgoing gas Macan's production was slated to end in July. Electric Macan sales dropped 40% in the first half of 2026 and Taycan EV deliveries fell 25%, while the 911 was the only model line to grow, up 19%. HSBC estimates the timing gap will cost Porsche around 25,000 units and roughly €500 million ($563 million) in profit in 2027, and forecasts operating profit will fall 8% that year. China deliveries sank 32% in the first half to around 14,500 units, extending a four-year decline, and first-half revenue fell 5% to 17.23 billion euros ($19.4 billion) even as operating profit rose 34% to 1.35 billion euros ($1.5 billion). On Sept. 18, Volkswagen said it would take a non-cash impairment of around 6 billion euros ($6.8 billion) on goodwill tied to Porsche, and investors will hear more on Oct. 7 at Porsche's capital markets day.
P911.XETRA · Capital · Negative HSBC estimates the combustion-Macan timing gap will cost ~25,000 units and ~€500M profit in 2027, with operating profit forecast to fall 8%.
P911.XETRA · Demand · Negative Electric Macan sales fell 40% and Taycan deliveries dropped 25%, with China deliveries down 32%, driving the gas-engine pivot.
VOW.XETRA · Capital · Negative Volkswagen takes a ~€6B non-cash goodwill impairment tied to Porsche.
VOW3.XETRA · Capital · Negative Volkswagen takes a ~€6B non-cash goodwill impairment tied to Porsche.
PAH3.XETRA · Capital · Negative As Porsche's controlling shareholder, it is exposed to the ~€6B Volkswagen goodwill impairment tied to Porsche and Porsche's profit decline.
Finance Ministry Orders Excise Department to Expedite Review of EV Tax, Splitting It Into 3 Tiers Based on Local Content
Dr. Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, has instructed the Excise Department to expedite its review of the automobile tax structure, with the tax rate for electric vehicles, or EVs, as the first priority, in order to create clarity and confidence for the automotive industry and for investors who are gradually coming to invest in Thailand. The review must first hear opinions from the automotive industry, and there is currently no conclusion on the new tax rates. The preliminary approach will divide the tax structure into 3 tiers. The first group is manufacturers that have production bases in the country and use a high proportion of domestic parts, or local content, and they will receive the low tax rate. The second group is manufacturers that have plans to invest or expand investment further in Thailand, and they will fall under the middle tax rate. The final group is fully imported vehicles, or CBU, imported whole from abroad, which will be subject to the highest excise tax rate. Meanwhile, Mr. Phanthong Loykulnan, Director-General of the Customs Department, said that at present many vehicle imports do not pay tax because they receive benefits from free trade agreements, or FTAs, and from investment promotion measures by the Board of Investment, or BOI. He cited the example of importing Porsche cars for sale in Thailand, which are imported from Malaysia and receive privileges under the FTA between the two countries, and therefore do not have to pay import tax. As for the import of auto parts for domestic assembly, they were previously subject to a tax rate of 30%, but if they are brought into a free zone, they are also exempt from tax. As a result, the collection of taxes from cars and auto parts at present has such limitations.
Electrification & Mobility › China NEV Leaders ▲Regulation
P911.XETRA · Tariff · Negative Porsche is cited as an example of fully imported CBU cars that would face the highest excise tier under the proposed EV tax restructure.
Volkswagen Cuts 2026 Margin Outlook on €6 Billion Porsche Write-Down
Volkswagen cut its 2026 operating-margin outlook to no more than 1% after warning that a €6 billion ($6.9B) write-down on its 75% stake in Porsche reflected weaker financial expectations for the luxury sports-car maker. The warning came as US stock indexes ended the week higher, with the S&P 500 up 0.6% and the Nasdaq up 2.1%, while the Dow fell 103 points. In Europe, the STOXX ended the week 1.1% lower, with Germany's DAX down 1.2% and France's CAC down 1.4%, though London's FTSE 100 rose 0.3%. B&Q and Screwfix owner Kingfisher raised its FY profit guidance following stronger first-half results. In Asia, China's People's Bank of China kept its benchmark lending rates unchanged at record lows for the 16th straight month, with the one-year loan prime rate at 3.0% and the five-year rate at 3.5%, while US President Donald Trump and Chinese President Xi Jinping agreed to reduce tariffs on $30B worth of non-sensitive goods traded in each direction. Chinese markets lost 1.8% for the week, Japan's Nikkei 225 rose about 1%, and SK Hynix's US subsidiary Solidigm is considering an initial public offering that would value the unit at $150B, while Chinese AI startup DeepSeek's annualized revenue run rate has topped $1B.
VOW.XETRA · Capital · Negative Volkswagen cut its 2026 operating-margin outlook to no more than 1% after the €6 billion Porsche write-down.
VOW3.XETRA · Capital · Negative Volkswagen cut its 2026 operating-margin outlook to no more than 1% after the €6 billion Porsche write-down.
KGF.LSE · Capital · Positive Kingfisher raised its FY profit guidance following stronger first-half results.
P911.XETRA · Capital · Negative Volkswagen's €6 billion write-down on its Porsche stake reflects weaker financial expectations for Porsche.
PAH3.XETRA · Capital · Negative The €6 billion write-down on Volkswagen's 75% Porsche stake signals weaker financial expectations for the Porsche holding.
ASW Joins Forces with AAS Auto and OSIM to Offer Porsche Macan EV and OSIM uDream.AI in the ONE RESIDENCE. THREE LEGACIES Campaign
AssetWise, or ASW, has launched the ONE RESIDENCE. THREE LEGACIES campaign for its master-piece single-detached home project, THE HONOR Yothinpattana, partnering with AAS Auto, the importer and distributor of Porsche vehicles, and OSIM to offer an exclusive package comprising the 100% electric sports SUV Porsche Macan EV and the smart wellness innovation OSIM uDream.AI to customers who purchase homes in the project priced between 50 and 100 million baht, from now until 31 October 2026 only. Mr. Kriangsak Hiamtho, Senior Managing Director of the Single-Detached Home and The Title Business Group at AssetWise Public Company Limited, said the campaign aims to deliver a Luxury Living Experience through three dimensions: Legacy of Prestige, Legacy of Performance, and Legacy of Wellness. Homes in the project range from 455 to 710 square meters, each with a private swimming pool and elevator, as well as two clubhouses. Ms. Tiwanat Rangsipramanakul, General Manager of AAS Auto Service Company Limited, said this collaboration reflects a shared vision of delivering an exceptional experience to customers. Meanwhile, Ms. Mutita Padiworadaphat, Marketing Director of OSIM (Thailand) Company Limited, said OSIM aims to convey the art of relaxation through innovation that addresses the Wellness at Home concept, a key element of the Luxury Living Experience.
ASW.BK · Demand · Positive AssetWise launches a campaign offering a Porsche Macan EV and OSIM uDream.AI package to boost home sales at THE HONOR Yothinpattana.
AAS Auto Service Co., Ltd. · Demand · Positive AAS Auto, the Porsche importer/distributor, partners to supply the Macan EV in the campaign, supporting vehicle sales.
OSIM (Thailand) Co., Ltd. · Demand · Positive OSIM (Thailand) partners to offer the uDream.AI wellness innovation in the campaign, promoting product adoption.
P911.XETRA · Demand · Positive Porsche Macan EV is included in the campaign package, potentially driving vehicle demand via AAS Auto's distribution.
Volkswagen set to cut another 4,100 jobs at Porsche
Porsche may face around 4,100 additional job cuts after parent company Volkswagen presses ahead with a major restructuring to improve profitability, amid mounting pressure on the luxury sports car business. The proposal is part of Volkswagen's largest restructuring plan, aimed at closing a roughly 700 million euro shortfall in its overhead savings target, according to German business newspaper Handelsblatt. Documents relating to the latest agreement, approved by Volkswagen's supervisory board, set out a proposal to eliminate around 4,100 positions at Porsche. The new cuts come on top of previously agreed workforce reduction plans and reflect pressure to shrink Porsche's cost base as the company grapples with operational and market challenges, including weaker performance in key markets, which is forcing Porsche to rethink its business strategy more deeply, particularly its approach to electric vehicles.
P911.XETRA · Capital · Negative Volkswagen's supervisory board approved a proposal to cut around 4,100 additional jobs at Porsche as part of restructuring to shrink its cost base.
VOW.XETRA · Capital · Negative Volkswagen presses ahead with its largest restructuring plan, cutting 4,100 jobs at Porsche to close a roughly 700 million euro overhead savings shortfall.
German auto union stages nationwide protests, blames VW's worsening results; Porsche CEO denies report of 4,000 more job cuts
On the 21st, auto workers in Germany held nationwide protests, blaming Volkswagen's worsening business performance. VW announced a downward revision of its earnings forecast on the 18th, including a 6 billion euro goodwill impairment at its luxury sports car unit Porsche, equivalent to 6.88 billion dollars. On the 19th, German business newspaper Handelsblatt reported that VW's large-scale restructuring plan for Porsche includes a proposal to cut more than 4,000 additional jobs. The protests took place at VW, BMW and major parts supplier Bosch, as Germany's most important industry, autos, faces painful job cuts, production relocations and possible plant closures. This month VW agreed to its largest-ever restructuring, planning to cut 50,000 jobs and avoiding an all-out confrontation with its powerful union, but the union again made clear it wants management to solve the problems, demanding stronger protection against unfair competition from China, EU subsidy policies and continuation of phased retirement arrangements. Meanwhile, Porsche CEO Michael Leiters, whose company was reported to be planning 4,000 additional job cuts, denied the report to employees, saying in an internal memo that there is no plan to cut 4,000 more jobs at Porsche, and that the existing restructuring plan has been approved by the supervisory board and no changes to the plan are envisaged.
P911.XETRA · Capital · Neutral Porsche CEO denies Handelsblatt report of 4,000 additional job cuts, while VW booked a €6bn goodwill impairment at Porsche.
VOW.XETRA · Capital · Negative VW cut its earnings forecast including a €6bn Porsche goodwill impairment and faces union protests over its restructuring.
VOW3.XETRA · Capital · Negative VW's downward earnings revision and €6bn Porsche impairment hit the ordinary/preference shares alike amid union protests.
Volkswagen Cuts Profit Outlook, Triggering Protests by 100,000 German Auto Workers
Tens of thousands of workers across Germany are staging protests at more than 280 events nationwide, demanding protection for jobs and factories after Volkswagen slashed its profit outlook late Friday. The demonstrations, organized by the IG Metall union, involve employees at Volkswagen, Mercedes-Benz, BMW, Audi, Porsche and major suppliers, with union officials saying as many as 100,000 people are taking part. Volkswagen cited weaker conditions in China, restructuring costs and a 6 billion euro writedown tied to Porsche for the outlook cut. Earlier this month, Volkswagen said it plans to double job cuts globally to 100,000, focused on high-cost plants in Europe and Germany, where the future of several sites remains undecided. The IG Metall chief called for tariffs on Chinese-made cars to be increased and broadened in scope, as Chinese automakers make inroads in Europe and the market in China is down by about a fifth this year.
Electrification & Mobility › China NEV Leaders ▲Competition
VOW.XETRA · Capital · Negative Volkswagen slashed its profit outlook citing weak China conditions, restructuring costs and a 6 billion euro Porsche writedown.
VOW3.XETRA · Capital · Negative Volkswagen VZO shares hit by the same profit-outlook cut and 6 billion euro Porsche writedown.
P911.XETRA · Capital · Negative Volkswagen's 6 billion euro writedown tied to Porsche drove the profit-outlook cut, directly hitting Porsche AG.
Volkswagen Cuts 2026 Profit Outlook on China Slump and Porsche Writedown
Volkswagen has dramatically cut its 2026 profit outlook, now expecting an operating margin of no more than 1% this year, down from its previous forecast of at least 4%. The German carmaker expects around €10 billion, or $11.5 billion, in charges this year, including restructuring costs tied to workforce reductions and writedowns on Chinese assets; that total includes a €6-billion writedown related to Porsche, reflecting revised long-term expectations for the sports-car maker. Excluding the exceptional charges, Volkswagen said its operating margin would be around 4%. Volkswagen shares fell more than 7% following the announcement, dragging other automakers lower. Chief Financial Officer Arno Antlitz said the Chinese market has contracted by around 20%, with no stabilization currently in sight, while Chinese automakers take domestic share and expand into Europe with competitively priced electric vehicles. Volkswagen also said growing EV sales are weighing on profitability at its Volkswagen passenger-car and Audi businesses, and it recently reached an agreement with labor representatives that could increase planned job cuts to 100,000 globally.
VOW.XETRA · Capital · Negative Volkswagen slashed its 2026 operating margin outlook to no more than 1% and expects ~€10 billion in charges including restructuring and China writedowns.
VOW.XETRA · Competition · Negative Chinese automakers are taking domestic share and expanding into Europe with competitively priced EVs, while China's market contracted ~20%.
P911.XETRA · Capital · Negative Volkswagen takes a €6-billion writedown on Porsche, reflecting revised long-term expectations for the sports-car maker.
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Morgan Stanley Downgrades Stellantis to Underweight, Cuts Target to $5.20
Morgan Stanley downgraded Stellantis to Underweight from Equal Weight and cut its price target to $5.20 from $8.00, sending the automaker's shares down more than 2% on Monday. The rating change came as part of a broader review of European automakers by analysts led by Javier Martinez de Olcoz Cerdan, who cited changes in Stellantis' inventories and incentives and said the product pipeline is lagging behind peers, potentially limiting the company's ability to reduce investment as cash generation declines. Morgan Stanley said Stellantis has the widest risk/reward skew in the sector, flagging refinancing as one potential risk, while asset disposals or changes to the United States-Mexico-Canada Agreement could affect its outlook in other scenarios. In the same review, Morgan Stanley upgraded Renault to Equal Weight from Underweight and raised its price target to €31 from €25, calling it the company with the largest increase in its estimates, and maintained Overweight ratings on Mercedes-Benz and BMW, lifting its Mercedes-Benz target to €59 from €58 and its BMW target to €76 from €74, with Mercedes-Benz remaining its preferred stock in the sector. Volkswagen's price target was raised to €89 from €77 with its Equal Weight rating maintained, Porsche stayed Underweight, and Morgan Stanley said it believes the cyclical margin bottom is behind us, raising its 2026 and 2027 estimates for the European automotive sector for the first time since April 2024, with forecasts now slightly above consensus.
Electrification & Mobility › Western / Legacy & Pure-play OEMs Capital
STLA · Capital · Negative Morgan Stanley downgraded Stellantis to Underweight and cut its price target to $5.20 from $8.00, flagging lagging product pipeline and refinancing risk.
RNL.PA · Capital · Positive Morgan Stanley upgraded Renault to Equal Weight from Underweight and raised its price target to €31 from €25, citing the largest increase in its estimates.
MBG.XETRA · Capital · Positive Morgan Stanley maintained Overweight on Mercedes-Benz, lifted its target to €59 from €58, and kept it as the sector's preferred stock.
BMW.XETRA · Capital · Positive Morgan Stanley maintained its Overweight rating on BMW and raised its price target to €76 from €74.
VOW.XETRA · Capital · Positive Morgan Stanley raised Volkswagen's price target to €89 from €77 while maintaining its Equal Weight rating.
P911.XETRA · Capital · Negative Morgan Stanley kept Porsche at Underweight in its European automaker review.
Porsche Completes Bugatti Rimac Exit, Raises 2026 Cash Flow Outlook
Porsche has completed the sale of its holdings in Bugatti Rimac and Rimac Group, ending its involvement in the Croatia-based electric hypercar business. The German carmaker sold its 45% stake in Bugatti Rimac and its 20.6% holding in Rimac Group after receiving regulatory approvals, with the purchasing consortium headed by US-based investment firm HOF Capital and BlueFive Capital as its biggest backer alongside other institutional investors from the US and Europe. The deal, agreed in April this year, is expected to generate around €1bn ($1.16bn) for the Porsche Group, of which €250m has been allocated to further strengthen the company's pension obligations. Reflecting the expected cash proceeds and the additional pension funding, Porsche has increased its forecast for the automotive net cash flow margin for the 2026 financial year to 5.5-7.5%, up from the previously projected 3-5%, guidance that did not include any effect from the sale. Following completion, Rimac Group retains its 55% stake, while Porsche's former share has passed to the new consortium, and Bugatti Rimac CEO Mate Rimac said he was happy the deal with Porsche and HOF Capital had been completed. Leadership changes were also announced: Christophe Piochon is leaving his positions as president of Bugatti Automobiles and chief operating officer of Bugatti Rimac, Mate Rimac will add the role of president of Bugatti Automobiles, and Marko Brkljačić, formerly COO at Rimac Technology, has been appointed COO of Bugatti Rimac. The divestment forms part of Porsche's broader push to concentrate on its core operations; last month the automaker agreed to sell its management and IT consulting arm MHP to Tata Consultancy Services at an enterprise value of €320m, while parent company Volkswagen approved Future Plan 2030 earlier this month, cutting a further 50,000 jobs group-wide and bringing total planned reductions to 100,000 by the decade's end.
Electrification & Mobility › Western / Legacy & Pure-play OEMs Capital
P911.XETRA · Capital · Positive Completing the Bugatti Rimac/Rimac Group stake sale is expected to generate ~€1bn and Porsche raised its 2026 automotive net cash flow margin guidance to 5.5-7.5%.
Bugatti Rimac d.o.o. · Capital · Neutral Porsche completed the sale of its 45% stake in Bugatti Rimac to a HOF Capital-led consortium, changing ownership but not Bugatti Rimac's operations.
Bugatti Rimac d.o.o. · · Neutral Porsche exits its Bugatti Rimac stake to a HOF Capital-led consortium; leadership changes announced but no clear directional impact on the company itself.
Rimac Group · Capital · Neutral Porsche sold its 20.6% holding in Rimac Group to the new consortium; Rimac retains its 55% stake, so ownership shifts without a clear operational impact.
Rimac Group · · Neutral Porsche completed sale of its stakes in Bugatti Rimac and Rimac Group to a HOF Capital-led consortium; Rimac retains 55% and leadership changes announced, but no clear directional impact on Rimac itself.
HOF Capital Completes €1 Billion Acquisition of Porsche's Stakes in Bugatti Rimac and Rimac Group
HOF Capital announced the completion of its acquisition of Porsche's equity interests in Bugatti Rimac and Rimac Group through an HOF-led consortium, a deal valued at approximately €1 billion. The transaction, first announced in April 2026, closed after all conditions, including regulatory clearances, were satisfied. HOF now holds a 23.5% stake, making it the largest shareholder in Rimac Group, which itself holds a 55% controlling interest in Bugatti Rimac; the consortium also acquired Porsche's direct 45% interest in Bugatti Rimac. As part of the investment, HOF Capital holds three supervisory board seats across the two companies, with Hisham Elhaddad joining both boards and Josh Klaczek joining Rimac Group's board. Executives from both firms expressed enthusiasm for the partnership, which they say will support the next phase of growth for the iconic brands.
Porsche sells MHP consulting unit to TCS in $1.5 billion AI deal
Porsche agreed to sell its management and IT consulting subsidiary MHP to Tata Consultancy Services as part of a five-year partnership valued at 1.25 billion euros, or 1.46 billion dollars. The price tag for MHP comes to 320 million euros, and alongside the acquisition TCS will stand up a dedicated AI Mobility Centre of Excellence for Porsche targeting manufacturing, engineering, operations, and customer experience. MHP, headquartered in Ludwigsburg, Germany, employs around 4,500 people and will retain its brand name and continue operating as an independent consultancy within TCS. Porsche and MHP will maintain their existing working relationship after the ownership transfer, with MHP continuing to support the automaker's digital and AI initiatives. The transaction remains subject to regulatory and competition law approvals and is expected to close in the coming months.
Mercedes sold just 1,153 cars in China in first half of 2026
Mercedes-Benz Group AG sold only 1,153 units in China in the first half of 2026, a fraction of the more than 80,000 similarly priced SU7 sedans that Xiaomi Corp. delivered in the same period. The performance echoes the challenges faced by BMW AG, Volkswagen AG, and Porsche AG in China, where all reported second-quarter sales declines of at least 30%, worse than the overall market's drop.
MBG.XETRA · Demand · Negative Mercedes sold only 1,153 cars in China in H1 2026, a dramatic drop indicating severely weak demand.
1810.HK · Demand · Positive Xiaomi delivered over 80,000 SU7 sedans in China in H1 2026, far outpacing Mercedes' 1,153 units, highlighting strong demand for its product.
BMW.XETRA · Demand · Negative BMW reported a second-quarter sales decline of at least 30% in China, reflecting weak demand for its vehicles.
P911.XETRA · Demand · Negative Porsche reported a second-quarter sales decline of at least 30% in China, indicating weak demand.
VOW.XETRA · Demand · Negative Volkswagen reported a second-quarter sales decline of at least 30% in China, reflecting weak demand.
Global stocks rise as earnings and AI optimism lift sentiment
US stock indexes ended the week higher as a global rally in semiconductor stocks and renewed optimism over the artificial intelligence trade lifted investor sentiment. Out of the 158 S&P 500 companies that reported earnings this week, 132 beat EPS estimates and 123 surpassed revenue expectations. The Federal Reserve held interest rates steady for the fifth consecutive meeting, while crude oil prices pulled back toward $85 per barrel following a pause in military escalation between the US and Iran. European equities ended the week 0.7% higher, with the Eurozone seeing stronger-than-expected economic growth in the second quarter but inflation remaining above the European Central Bank's target. The Bank of England kept interest rates unchanged, and the Bank of Japan held its key short-term rate at 1.0%, the highest since September 1995. In corporate news, Porsche plans to cut around one in five jobs by 2035, Deutsche Bank announced a new €500 million stock buyback, UBS unveiled a $3 billion share repurchase program, and Rolls-Royce raised its full-year profit forecast after a 46% jump in first-half operating profit. China's business activity unexpectedly contracted across both manufacturing and non-manufacturing sectors in July 2026, while an earthquake with a preliminary magnitude of 7.1 struck Japan's southern Kumamoto Prefecture.
Yahoo Finance test drives the Corvette Grand Sport X hybrid
Yahoo Finance Senior Autos Reporter Pras Subramanian test drove Chevrolet's new Corvette Grand Sport X hybrid, highlighting its new 6.7L V8 engine and a starting price of about $112,000. The Grand Sport X features a hybrid powertrain that provides torque fill during gear changes and improves handling in inclement weather, making it a versatile all-season sports car. Subramanian noted that the vehicle competes with the Porsche 911 Turbo, which costs roughly double at around $200,000 to $250,000, demonstrating GM's ability to deliver high performance at a lower price point.
German automakers see sales slump, accelerate cost cuts and layoffs to weather weak demand
Germany’s automotive giants are grappling with severe economic headwinds after first-half sales tumbled worldwide, especially in key markets like China. Many companies are now racing to adapt through aggressive cost controls, business restructuring, and thousands of job cuts to shore up their finances. Porsche reported total deliveries of 122,306 vehicles in the first half of this year, down 16.5 percent from the same period last year. Sales revenue fell 5.1 percent to 17.23 billion euros, but operating profit rose 33.9 percent thanks to strict cost management. The company is preparing to cut around 5,000 additional positions, which together with earlier plans will bring total job reductions to about 9,000, or nearly 20 percent of its workforce. BMW delivered a total of 1.15 million vehicles in the first six months, a 4.2 percent decline year-on-year. Meanwhile, Volkswagen, Porsche’s parent company, sold around 4 million vehicles in the first half, down 8.4 percent, causing operating profit to drop 11.6 percent to 5.9 billion euros. Arno Antlitz, Volkswagen’s Chief Financial Officer and Chief Operating Officer, said the group’s operating margin of 3.8 percent is too low and called for additional measures. The business confidence index for the German auto industry, compiled by the ifo Institute, fell to minus 21.4 points in June from minus 20.7 points in May. Hildegard Müller, president of the German Association of the Automotive Industry, said the sector needs comprehensive reform to return to growth. Amid the gloom, the electric vehicle market remains a bright spot, with new registrations of battery electric and plug-in hybrid vehicles in Germany surging 60 percent year-on-year in June to 116,300 units.
Luxury brands and automakers signal consumer weakness from China
European luxury brands and automakers are signaling diverging fortunes amid consumer weakness in China. BMW, Audi, Volkswagen, and Porsche are struggling as Chinese consumers opt for cheaper, better domestic alternatives, while heritage luxury names like LVMH and Kering are holding up better. Ferrari and Rolls-Royce have seen China sales fall but not as sharply as mass-premium auto brands. Hermez said price hikes in 2027 are going to be smaller than this year, which weighed on its shares, while Kering's 1% second-quarter revenue rise was enough to boost its stock.
German luxury sports car maker Porsche said on the 29th that it is maintaining its 2026 performance outlook thanks to a business restructuring plan. New job cuts are expected to total around 9,000, or about 20% of the workforce. Chief Financial Officer Jochen Breckner said this will drag down the second half by 300 million to 400 million euros, with a similar impact expected next year. Group operating profit in the first half rose 34% year-on-year to 1.35 billion euros. Although revenue fell 5%, the first-half operating margin was 7.8%, exceeding the full-year 2026 target range of 5.5% to 7.5%.
P911.XETRA · Capital · Positive First-half operating profit rose 34% and margin exceeded 2026 target range, despite restructuring costs.
PAH3.XETRA · Capital · Positive As majority shareholder, Porsche AG's improved profitability and maintained outlook positively impact holding company value.
Porsche to cut 20% of workforce by 2035 amid China and EV struggles
German luxury carmaker Porsche will cut a total of 9,000 jobs by 2035, equivalent to about one in five employees. In an agreement announced on the 27th by management and employee representatives, they also agreed to cut an additional 5,000 positions while avoiding compulsory redundancies through natural attrition and voluntary retirement. This follows the 3,900 job cuts agreed in February 2025 and an additional 500 cuts due to subsidiary closures, reducing the workforce from around 42,600 at the end of 2024. Michael Reiters, who became CEO at the beginning of this year, has been tasked with a fundamental turnaround of the business amid a sharp sales decline in the once highly profitable Chinese market and a stalling electric vehicle strategy.
Volkswagen Reports Stable Revenue but China Deliveries Drop 26% in First Half of 2026
Volkswagen AG reported stable sales revenue of 158 billion euros for the first half of 2026, while group deliveries fell 6 percent to 4.1 million vehicles. Operating profit reached 5.9 billion euros, yielding a margin of 3.8 percent, or 4.3 percent before special effects. Automotive net cash flow improved sharply to 3.2 billion euros, up 4.5 billion euros year-on-year, and net industrial liquidity stood at 32.7 billion euros. The battery-electric vehicle order book surged 57 percent to 330,000 units, but deliveries in China declined 26 percent in the half, including a 37 percent drop in the second quarter. For the full year, Volkswagen expects an operating return on sales between 4 percent and 5.5 percent and automotive net cash flow between 3 billion and 6 billion euros.
Electrification & Mobility › China NEV Leaders ▲Competition
VOW.XETRA · Capital · Neutral Stable revenue and improved cash flow are positive, but weak China deliveries and lower margin guidance create mixed outlook.
VOW3.XETRA · Capital · Neutral Same as Volkswagen AG; stable revenue and cash flow offset by China decline and margin guidance.
P911.XETRA · Demand · Negative Porsche is part of Volkswagen Group; China deliveries drop 26% signals weak demand in key market, likely affecting Porsche sales.
Volkswagen net profit plunges 32.9% as carmaker weighs up to 100,000 job cuts
Volkswagen reported a 32.9 percent drop in second-quarter net profit to 1.54 billion euros, as the crisis-hit carmaker weighs up to 100,000 job cuts worldwide. The result was hit by a 500-million-euro charge for stopping US production of its electric ID.4 and negative mix effects from selling more lower-margin products. The group, which includes brands such as Lamborghini, Audi, Skoda and Porsche, also cut its full-year guidance and now expects sales to be flat or fall up to three percent. CEO Oliver Blume told staff that four plants could close and a further 50,000 jobs might have to go on top of the 50,000 departures already agreed across the group, which would be the largest restructuring in automotive history. The company is grappling with slimmer margins from electric cars, US tariffs and intense Chinese competition, with vehicle deliveries in China falling a further 31.6 percent in the first six months of the year.
VOW.XETRA · Capital · Negative Volkswagen reported a 32.9% drop in net profit, cut full-year guidance, and announced potential job cuts and plant closures.
VOW3.XETRA · Capital · Negative Volkswagen reported a 32.9% drop in net profit, cut full-year guidance, and announced potential job cuts and plant closures.
P911.XETRA · Demand · Negative Volkswagen group's weak sales and guidance, including falling China deliveries, negatively affect Porsche AG as part of the group.
PAH3.XETRA · Demand · Negative Volkswagen group's poor performance and outlook, including falling China deliveries, negatively affect Porsche Automobil Holding SE as a major shareholder.
Volkswagen CEO Warns Another 50,000 Jobs Could Be at Risk
Volkswagen CEO Oliver Blume warned employees on Monday that the automaker may need to eliminate another 50,000 jobs worldwide as it scrambles to close a 20% cost gap with rivals and avoid shutting German factories. The company has already agreed to roughly 50,000 reductions across the group, including at Audi and Porsche, and adding Blume's "theoretical deduction" would bring potential cuts to about 100,000 positions. Blume said Volkswagen preferred "intelligent solutions" to plant closures but could not yet identify competitive long-term uses for facilities in Emden, Hanover, Zwickau and Neckarsulm. The warning follows a sharp business downturn, with second-quarter global deliveries falling 8.6% and deliveries in China plunging 36.6%, while tariffs are costing Volkswagen about 5 billion euros in annual operating profit. Labor representatives blocked Blume's broader restructuring proposal in a 12-7 supervisory board vote last week.
Volkswagen CEO warns staff of potential 50,000 additional job cuts
Volkswagen CEO Oliver Blume has warned staff that a further 50,000 jobs could be axed, the first internal acknowledgement that total cuts may reach 100,000. The group has already agreed to 50,000 job losses, including at its Porsche and Audi divisions. In an internal memo, Blume said the company had identified a 20% cost disadvantage relative to peer firms, necessitating additional cuts, which translates into a theoretical deduction of another 50,000 positions globally. Labour representatives on the supervisory board rejected the proposals, which reportedly included job cuts and the possible closure of four plants. Blume indicated a preference for intelligent solutions over closures, pointing to defence sector work or the production of Chinese VW models in Europe as possible uses for underutilised sites.
Volkswagen Reaffirms 2026 Outlook as CEO Warns 50,000 More Job Cuts May Be Needed
Volkswagen has maintained its financial outlook for fiscal 2026 even as Chief Executive Oliver Blume warned that the automaker may ultimately need to eliminate around 50,000 more jobs globally to strengthen its competitive position, according to an internal memo reviewed by Reuters. The company continues to forecast sales revenue growth of 0 percent to 3 percent from 321.9 billion euros in 2025, and expects an operating profit margin of 4.0 percent to 5.5 percent, up from 2.8 percent last year. Volkswagen also projects an automotive investment ratio of 11 percent to 12 percent, automotive reported net cash flow of 3 billion euros to 6 billion euros, and automotive net liquidity of 32 billion euros to 34 billion euros. Blume said the company faces a cost disadvantage of about 20 percent compared with competitors, and after previously agreeing to cut around 50,000 jobs across the group, including at Porsche and Audi, this points to a theoretical need for another 50,000 job reductions, though no final decision has been made. The automaker is restructuring amid higher tariff costs, fierce competition in China, and the need to improve efficiency at its German factories, and is considering alternatives to plant closures such as defense-related production and building Chinese Volkswagen models in Europe.
VOW.XETRA · Demand · Negative CEO warns of potential 50k additional job cuts due to 20% cost disadvantage vs competitors, tariff costs, and China competition.
VOW3.XETRA · Demand · Negative Same as Volkswagen AG: CEO warns of potential 50k additional job cuts due to cost disadvantage and competitive pressures.
P911.XETRA · Demand · Negative CEO warns of potential 50k additional job cuts due to high costs and weak competitiveness, impacting Porsche's profitability and demand outlook.
PAH3.XETRA · Demand · Negative As major Volkswagen shareholder, the warning of further job cuts and cost pressures negatively affects the holding's value.
German carmakers suffer steep China sales plunge in Q2
Major German carmakers saw sharp quarterly sales declines in China as domestic demand weakened and competition heated up. Volkswagen, Mercedes-Benz, BMW and Porsche reported China sales for the April-to-June quarter plummeting between 30% and 41% compared with the same period a year ago, according to company data released over the past week. For the first half of this year, they all reported a more than 20% year-on-year drop in China, squeezing overall profits. Volkswagen group deliveries in China fell 36.6% during the quarter to 424,300 vehicles, dragging down its global sales to an 8.6% decline even as deliveries increased in Europe and the Americas. The Wolfsburg-based auto group said it would slash its model lineup by up to half after the latest sales declines, while Porsche called China's market environment challenging and Mercedes-Benz cited a significantly weaker overall market and macroeconomic environment.
Dr. Ing. h.c. F. Porsche reported first half 2026 deliveries of 122,306 vehicles, a 16% decline from 146,391 a year earlier. The stock has softened recently, down 5.45% over the past 30 days, though it still shows a 10.26% gain over 90 days and a 5.64% total shareholder return over one year. Porsche trades at a price-to-earnings ratio of 131.4 times, well above an estimated fair P/E of 19 times and the global auto industry average of 14.4 times. A discounted cash flow model suggests a fair value of €42.73 per share, slightly below the last close of €45.13.
Volkswagen is preparing to halve its model lineup and cut annual production capacity to 9 million vehicles as Europe's largest automaker confronts tariffs, geopolitical pressure and intensifying global competition. The group outlined a restructuring plan after a July 9 supervisory board meeting, which could reduce its global model lineup by up to 50%, cut equipment options and vehicle variants by as much as 75%, and lower capacity from roughly 10 million vehicles annually. The overhaul will also align software systems, electronic architectures and vehicle platforms across Eastern and Western operations, reducing duplicated engineering work. Reuters reported the broader restructuring could affect up to 100,000 jobs. CEO Oliver Blume said the global situation has continued to deteriorate, while CFO Arno Antlitz added that Volkswagen must substantially reduce complexity.
VOW.XETRA · Supply · Negative Volkswagen is halving its model lineup and cutting production capacity to 9 million vehicles, reducing supply and complexity.
VOW3.XETRA · Supply · Negative Same as Volkswagen AG; the VZO O.N. share represents the same company.
P911.XETRA · Demand · Negative Volkswagen's model lineup cuts and capacity reduction may reduce demand for Porsche's components or shared platforms, but Porsche is a separate brand with its own lineup; impact is indirect and limited.
Volkswagen to axe half its car models in cost-cutting drive
Volkswagen will axe one in two models from its vehicle range as part of a cost-cutting drive. The German car giant, which has about 150 different models across brands including Audi, Bentley, Lamborghini and Porsche, said halving the number of models would allow it to focus on its best-selling and most profitable vehicles. It did not specify which brands would be affected or when the changes would be made. The move follows a board meeting that failed to agree on job cuts of up to 100,000 roles, with chief executive Oliver Blume saying the company is making the Volkswagen Group faster, more robust and more competitive. Unions staged protests outside plants across Germany on Thursday, warning of stepped-up industrial action if the company presses ahead with more job cuts or factory closures.
VOW.XETRA · Supply · Negative VW plans to halve its model range and may cut up to 100,000 jobs, reducing production capacity and increasing labor unrest.
VOW3.XETRA · Supply · Negative Same as VW AG; VZO O.N. shares represent the same company, impacted by model cuts and potential job reductions.
P911.XETRA · Demand · Negative Porsche brand may lose some models as part of VW's cost-cutting, potentially reducing product range and sales.
PAH3.XETRA · Demand · Negative As a major VW shareholder, cost-cutting and potential job cuts signal operational challenges, negatively impacting the holding's value.
Bentley Motors Limited · Demand · Negative Bentley may lose models as part of VW's cost-cutting, potentially reducing its product lineup and sales.
Porsche first-half sales fall 16%, hitting a six-year low
Porsche's global sales for the first half of 2026 fell 16% year-on-year to 122,306 units, the lowest level since 2020. Sales declined across all regions, with a 13% drop in North America, its largest market, and a 32% plunge in China. The company cited the end of production for the 718 model, a pullback from last year's strong electric Macan sales, and the expiry of US tax incentives for electric and hybrid vehicles as the main reasons. In China in particular, demand for luxury cars is shrinking due to a property slump and intensifying competition from local manufacturers. Porsche is responding by reducing its dealership network and offering locally tailored software. The company expects its China sales to decline for a fifth consecutive year in full-year 2026.
P911.XETRA · Demand · Negative First-half sales fell 16% to a six-year low, with declines across all regions including a 32% plunge in China due to shrinking luxury car demand and competition.
PAH3.XETRA · Demand · Negative As the majority shareholder of Porsche AG, the sales decline directly impacts Porsche Automobil Holding SE's earnings and valuation.
Volkswagen’s 16-Year Low Masks a Massive Margin Engine
Volkswagen trades near a 16-year low with a price-to-book ratio of 0.18, signaling deep undervaluation relative to its hard assets. Management is pursuing up to 100,000 job cuts and four factory closures to drive operating margins from 2.8% toward 8% to 10% by 2030. A $10.7 billion liquidity injection from a marine engines sale and potential spinoffs of premium brands like Porsche and Lamborghini could fund the restructuring. The company generated $364.13 billion in annual sales over the trailing 12 months, yet its market capitalization is roughly $42.16 billion, translating to a price-to-sales ratio of 0.12. CEO Oliver Blume has laid out an eight-point restructuring framework, and the State of Lower Saxony holds a 20% voting stake, creating friction with capital market demands.
VOW.XETRA · Capital · Positive Deep undervaluation (P/B 0.18, P/S 0.12) and restructuring plan (job cuts, factory closures, margin target) signal potential value unlock.
VOW3.XETRA · Capital · Positive Same as Volkswagen AG; VZO O.N. is the same entity with a different share class.
P911.XETRA · Capital · Neutral Mentioned as a potential spinoff that could fund restructuring, but no concrete decision or impact on Porsche AG itself.
Volkswagen stock fell to its lowest level in roughly 15 years on Monday after reports that the German carmaker is considering cutting up to 100,000 jobs. The stock dropped close to 2% in Frankfurt, putting it on track for its weakest close since October 2010. The reported job cuts would represent the largest restructuring in Volkswagen's history, doubling a previously agreed target of around 50,000 position reductions across Volkswagen AG, Audi, Porsche, and CARIAD by 2030. Among the sites under consideration for closure are three Volkswagen plants in Hanover, Zwickau, and Emden, as well as Audi's facility in Neckarsulm, which together employ more than 45,000 workers. Labor union IG Metall and Volkswagen's General Works Council have vowed to prevent the plan, while the company has not confirmed specifics, stating only that the entire group must undergo far-reaching change.
VOW.XETRA · Supply · Negative Volkswagen AG is the subject of the article; reports of up to 100,000 job cuts and plant closures represent a major restructuring, causing stock to hit 15-year low.
VOW3.XETRA · Supply · Negative Volkswagen AG VZO O.N. is the same entity as Volkswagen AG; the job cut reports directly impact the stock, which fell to a 15-year low.
CARIAD · Supply · Negative CARIAD is a Volkswagen Group subsidiary; the restructuring includes job cuts at CARIAD, indicating reduced investment or downsizing.
P911.XETRA · Supply · Negative Porsche AG is part of Volkswagen Group and job cuts at Audi and Porsche plants indicate restructuring that may affect production and profitability.
Porsche Financial Services CFO Konrad Riedl retires after 36 years
Porsche Financial Services CFO Konrad Riedl is retiring after a 36-year tenure, with board spokesperson Volker Reichhardt stepping in as finance chief. Michael Glinski was also appointed chief commercial officer and board member. The changes come as parent Porsche AG launches its Strategy 2035 plan to boost sustainable profitability through structural streamlining and product-line reductions. The automaker recently discontinued two Taycan variants in the U.S. and plans to close three subsidiaries and cut about 500 jobs.
Porsche in talks to cut jobs as part of broader turnaround effort
Porsche is in talks to cut jobs as part of a broader streamlining plan aimed at securing the German sportscar maker's long-term competitiveness. Chief Executive Michael Leiters said at the annual shareholder meeting that open discussions with employee representatives are underway, but he could not provide further details on the scale of job cuts. The company has already shed non-core assets, including stakes in Bugatti Rimac and Rimac Group, and is shutting down units such as battery-tech developer Cellforce Group and e-bike drive systems developer Porsche eBike Performance. Leiters is pursuing a value-over-volume strategy, investing in new gas-powered and hybrid models while delaying some all-electric vehicle rollouts and reducing model variants. Porsche confirmed its full-year guidance, expecting sales of 35 billion to 36 billion euros, an operating margin of 5.5% to 7.5%, and one-off restructuring costs of 800 million to 900 million euros.
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