Vehicle Technician

Porsche has sold its consulting arm MHP to Tata Consultancy Services for approximately €320 million, then immediately signed a five-year, €1.25 billion contract to buy back similar digital and AI services from the new owner. The sale comes as Porsche faces severe financial pressure. The company's operating return on sales plummeted to 1.1% in 2025 from 14.1% the previous year. Porsche booked roughly €3.1 billion in extraordinary charges tied to delaying its next-generation EV platform and pivoting back to combustion engines. MHP generated €742 million in revenue last year, meaning it sold for less than half of annual sales. Porsche is now committed to spending nearly four times the sale price over five years for comparable services. Deliveries fell 16.5% in the first half of 2026, whilst battery-electric vehicles' share in Porsche's lineup shrank from 23.5% to 19.4%.

Porsche has signed a five-year contract worth €1.25 billion ($1.46 billion) with Tata Consultancy Services for artificial intelligence deployment. As part of the agreement, TCS will acquire Porsche's IT consulting business, MHP, for €320 million. TCS will establish a specialised hub to oversee AI implementation at the German sports-car maker. The partnership aims to combine Porsche's automotive expertise with TCS's digital and AI capabilities, according to Michael Leiters, Porsche's chairman. The deal will take effect once TCS completes the MHP acquisition, which includes around 4,500 employees. TCS reported annualised AI revenues of $2.6 billion in the June quarter, up 13.6% from the previous quarter. The MHP sale forms part of Porsche's "Sportwagenschmiede 35" strategy to improve profitability and cash flow.

Porsche outlines 3 key pillars of 'strategy 2035' at Annual General Meeting. L-R: Dr Michael Leiters, CEO, Porsche AG; Dr Wolfgang Porsche, Chairman of the Supervisory Board, Porsche AG and Dr jochen breckner, CFO, Porsche AG. German luxury carmaker Porsche confirmed its financial forecast for the 2026 fiscal year and provided preliminary insights into its new 'Strategy 2035' at its 4th Annual General Meeting held on 23 June 2026. The strategy is designed to enhance profitability and strategic resilience through three primary pillars as outlined by Dr. Michael Leiters, CEO, Porsche, with full details to be presented at a Capital Markets Day on 7 October 2026. * Brand & Customer: Porsche will refocus on its sports car DNA, design and exclusivity. The strategy shifts away from volume maximisation toward a focus on desirability and value. * Products & Technology: The company plans to reduce model complexity by cutting the number of variants. Porsche will continue to invest in combustion, hybrid and electric powertrains, noting that the 911 will remain combustion-hybrid and will not move to a fully electric powertrain. * Company & Operations: Porsche is structurally streamlining its organisation at all levels and investigating increased use of Volkswagen Group modular platforms. Discussions are ongoing regarding workforce adjustments to ensure long-term competitiveness. Despite a challenging market environment, Porsche confirmed the financial targets for 2026 including 5.5 percent to 7.5 percent (factoring in EUR 800-900 million in one-off expenses and EUR 700 million in tariff costs) operating group return on sales. Group sales revenue to come at EUR 35-36 billion with automotive net cash-flow margin of 3 percent to 5 percent. Furthermore, the Board of Directors of Porsche have proposed a dividend of EUR 1.00 per ordinary share and EUR 1.01 per preferred share for FY2025. While this payout exceeds the target ratio of 50 percent of consolidated profit after tax, it represents a decrease compared to the previous year, reflecting a move to maintain financial flexibility during the current transformation phase. Dr. Wolfgang Porsche, Chairman of the Supervisory Board, reaffirmed his backing of CEO Dr. Michael Leiters, emphasising that while the necessary restructuring measures may be 'uncomfortable,' but they are essential for the company's future success.