---
title: 'Porsche Increases Their Prices Again?'
source: 'https://youtube.com/watch?v=MPN2bM41QgM'
video_id: 'MPN2bM41QgM'
date: 2026-10-25
duration_sec: 89
channel: 'Doug DeMuro'
---

# Porsche Increases Their Prices Again?

> Source: [Porsche Increases Their Prices Again?](https://youtube.com/watch?v=MPN2bM41QgM)

## Summary

This video analyzes Porsche's recent financial struggles and strategic pivot toward becoming a more luxury-focused brand. It discusses the company's profit decline, the influence of its new CEO, and the challenges of balancing high-end exclusivity with dealer relationships.

### Key Points

- **Porsche's Profit Collapse** [00:01] — Porsche's profits dropped from billions of euros a couple of years ago to just 50 euros last year, indicating a severe financial downturn.
- **New CEO's Background** [00:16] — The new CEO previously worked at Porsche during its profitable era in the early 2010s, then moved to Ferrari and McLaren, where his task was to improve financial performance.
- **China Sales and VW Ownership** [00:28] — Porsche faced issues selling cars in China, and since it is 75% owned by VW, its fortunes are closely tied to VW's performance. VW wrote down $7 billion of Porsche's value.
- **Adopting the Ferrari Playbook** [00:43] — Porsche's plan is to emulate Ferrari by positioning itself as a more exclusive luxury brand, focusing on high-end, expensive models rather than volume sales.
- **Capturing GT Car Margins** [00:55] — Historically, buying a Porsche GT car involved significant dealer markups. The new strategy aims for Porsche to capture that margin directly.
- **Dealer Pushback Risk** [01:09] — If Porsche takes margins from dealers, it becomes harder to sell volume models like the Macan EV. Dealers may resist, potentially leading to severe conflicts.

### Conclusion

Porsche is pivoting to a luxury-first strategy to recover from a massive profit drop, but this risks alienating dealers who depend on volume sales, creating a high-stakes balancing act.

## Transcript

to tell you about Porsche's profits. A couple of years ago, they were billions of euros. Last year, they were 50 euros. >> Let's talk about the business case here. What I think is interesting here, they have a new CEO. He was at Porsche in the
heyday, like 2010s, 2013s, making all the money. Then he went to Ferrari, saw McLaren for the past couple years. And at McLaren, his job was to get that >> And there's some things that translate
>> in the products that they were making, and they had issues selling cars in China. Porsche also is 75% owned by VW. So, as VW goes, Porsche goes. Where I'm heading with all of this is VW wrote down $7 billion of value off of Porsche
their forward-looking sales, they just didn't have the juice. So, their plan is, let's take the Ferrari playbook, let's be more of a luxury company, and let's really make sure that the high-end
but are expensive. For years, if you went to go buy a Porsche GT car, you're >> Yeah. >> And if I am the CEO of Porsche, I would capture it. >> The drawback to that strategy, when
Porsche comes in and tries to take that margin, it is a lot harder to put down Macan EVs on the dealers. The day that Porsche decides they want all that cash for themselves is the day that the dealers say, "If you give me one more
Macan EV so I can put it on my overflow lot, I'm going to fly to Atlanta myself lot, I'm going to fly to Atlanta myself and start killing people."