Porsche shifts back toward combustion engines in strategy change

Porsche has changed its strategy under CEO Michael Leiters, planning to make fewer cars and focus more on expensive models with combustion engines.

The company had previously aimed for 80 percent of its sales to be fully electric by 2030.

It began changing course in stages, saying in 2024 that it would keep combustion engines for longer, later dropping the electric-sales target and stopping a planned electric platform.

Strategy adviser Svenja Stöveken says leaders should clearly explain why their old assumptions were wrong, including where management itself misjudged the situation.

They should also spell out what will change in practice, such as which projects will stop, where budgets will go and how success will be measured.

Clear plans can help employees and investors judge whether the new direction is working and feel that the company can act, rather than being ruled by outside events.

The story does not give a timeline for Porsche’s next steps.