Porsche is promising a return to form, but it’s asking investors for something that’s currently in short supply. Patience. At the company’s annual general meeting this week, new CEO Michael Leiters outlined the foundations of Strategy 2035, a sweeping turnaround plan designed to restore profit margins that cratered to just 1.1 percent last year.
Leiters, who became CEO on January 1, insists Porsche knows exactly what needs fixing. The strategy rests on three pillars that sound simple enough. Brand and Customer, Products and Technology, and Company and Operations. The goal is sustainable profitability, greater resilience and a company that spends less time managing complexity and more time building desirable sports cars.
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