Porsche Faces Margin Drop and Global Sales Pressures

Porsche is implementing another round of cost-cutting measures as it faces declining sales in China, weak electric vehicle demand, and increased U.S. import tariffs. CEO Oliver Blume has told employees that negotiations on further workforce reductions will begin later in 2025, after previous job cuts and non-renewal of thousands of temporary contracts. The company's operating margin fell to 8.6% in Q1 2025, with a recovery target of 15–17% in the medium term. All Porsches sold in the U.S. are imported from Europe, making the brand especially vulnerable to tariff hikes, while competition and shifting preferences in China continue to impact sales. Porsche has also halted sales of some electric vehicles in the UK. These developments highlight the broader challenges luxury automakers face due to global supply chain dependencies and rapidly changing international markets.