Porsche Profits Fall 99% as CEO in Crisis Mode

Literally every car company decided, "hey lets move 'up market' and just sell to rich people" And now literally every car company is like where are the buyers !?!?!?!?!?

Who would have thought that raising prices by 50%-100% over 5 years would be a terrible idea

People just can't afford a proper midlife crisis any more.

I'm an automotive engineer. I can tell you confidently, that the decline in auto sales and losses are generally caused by higher up MBA bros. They make all the poor decisions, but when crisis strikes, engineers and technicians are the first to be laid off. Meanwhile, the managers, who took the bad decisions in the first place, without consulting actual engineers, often stay. And then they wonder, "We fired 15% of our engineering staff last year, why do our vehicles suck and why are the sales plummeting?" If they could only understand anything beyond shareholder profits, powerpoint, meetings, graphs and profit figures. And its the same repeating story of most doomed companies.

To be honest, the entire auto industry is just predatory. Cheap build materials, subscriptions, massive data collection and selling, poor customer service, and useless features while we are expected to pay premium prices. The real flex right now is owning an old car that’s paid off. A car without all this nonsense.

“A brand known for stability”. You kids are too young to remember that Porsche was broke back in the 90s and was building cars for Mercedes and Audi, and it was the Boxter and Cayenne which saved it.

Profits fall 99% but CEO's salary still increases.

EV buyers are not, by definition, heritage buyers. Porsche assumed they were the same market, instead of two different ones. Strategic mistake.

Thanks for watching! Quick clarification. In the intro, I mentioned Porsche was known for their "stability" and to summarise the financial issues for brevity, I later mentioned that they had "dips along the way". But I should have elaborated the financial history a bit more as I can see why this can be viewed as mischaracterisation. Thanks for pointing this out (as always) and thanks for the support in 2025! If you're reading this, I hope you have an incredible Christmas and New Year's. Cheers, have a good one.

A 2.5 min advert in a 14 min video is wild.