Porsche is preparing a sharp price increase on its most exclusive sports cars as the company tries to restore profitability after a difficult stretch of weak margins, China sales declines, and costly electric-vehicle missteps.

At a Capital Markets Day in Weissach on Wednesday, the Volkswagen subsidiary outlined a strategy called “Sportwagenschmiede ’35” that prioritizes value over volume. Under chief executive Michael Leiters, who joined from McLaren earlier this year and previously served as Ferrari’s chief technology officer, Porsche plans to lift the average price of its top-end models by roughly 20 percent. Those vehicles, which include high-specification 911s, are expected to average more than €330,000 (about $370,000) by the end of the decade, up from roughly €270,000 this year. Top models are also set to account for a larger share of the lineup, rising toward 45 percent from about one-third today.

The move is designed to generate more revenue per car while selling fewer of them. Porsche wants to lower its break-even point below 200,000 vehicles a year, compared with a previous level near 280,000, and has agreed with unions to cut about 9,000 jobs—roughly a fifth of the workforce—by 2035. Product variants will be reduced by around 20 percent, personalization revenue through the Sonderwunsch program is targeted to rise sharply, and the company is developing a mid-engine platform for a new model line sitting above the 911. That would mark Porsche’s return to the limited-production supercar segment for the first time since the 918 Spyder in 2013.

The price push follows a steep drop in profitability. Porsche’s operating margin fell to 1.1 percent last year amid restructuring costs, tariffs, and softer demand, before recovering to 7.8 percent in the first half of this year. Management is now aiming for a medium-term margin of 10 to 15 percent and 15 percent longer term. Leiters said the priority is to strengthen the sports-car brand with desirable models in high-margin segments and to “further elevate our positioning, protect the exclusivity of Porsche and gain pricing power.”

Shares have fallen sharply from their early-2023 peak, reflecting investor concern over the EV transition and China. The company is leaning harder on combustion and hybrid powertrains in key markets while trying to make its remaining volume more exclusive and more profitable.