German auto giant in crisis – Porsche loses around EUR 1 billion

Porsche has fallen into the red for the first time since going public in 2022, reporting a loss of almost EUR 1 billion as the German sports car maker made a costly switch to petrol engines rather than electric vehicles.

The group reported an operating loss of EUR 967 million in the third quarter, compared to an operating profit of EUR 974 million in the same period last year.

In the first nine months of 2025, it made an operating profit of just EUR 40 million, compared to EUR 4 billion in 2024.

The sports car maker has been a reliable source of profit for the Volkswagen Group, but has struggled in the face of lower-than-expected demand for electric vehicles, falling sales in China and increased US tariffs.

– We expect 2025 to be the lowest year, which precedes a noticeable improvement for Porsche from 2026 onwards – Chief Financial Officer Jochen Breckner said in a statement.

Porsche has “willingly accepted” the weak results as it reorganizes its product line, Breckner said.

The company announced last month that it would take a charge of 1.8 billion euros after abandoning a new all-electric hybrid, introducing new gasoline and hybrid models.

Porsche will also focus more on making its cars “more individual, more exclusive and more desirable,” the company’s CFO said.

Porsche

Volkswagen Group

Jochen Breckner

operations

losses