Porsche Shifts Back to Gas Engines as EV Sales Slump

Porsche AG will invest €800 million ($831 million) in gasoline and hybrid vehicles, triggering a sharp decline last week as the luxury carmaker retreats from its electric strategy.

Executives told investors the shift to traditional engines will cut profit margins to 10-12%, far below Porsche’s 20% target. The company aims to boost revenue to €37-39 billion ($40-41 billion) while taking what it calls “extensive measures” to protect profits.

Chinese electric vehicle makers have battered Porsche’s position in Asia. BYD and other domestic manufacturers drove Porsche’s Chinese sales down 28% last year, contributing to a 3% global decline.

The Taycan, Porsche’s electric flagship sedan, saw deliveries plunge by half to 20,800 units in 2024. The new electric Macan SUV has reached 18,000 sales since September, but technical challenges plague other battery-powered projects. The next-generation 718 sports car faces delays ahead of its planned launch, while the battery-powered Cayenne may miss its 2026 debut.

CFO Lutz Meschke now wants to add combustion engines to models originally planned as pure electric vehicles. Porsche has already committed to build V-8 engines for its Cayenne and Panamera models beyond 2030.

The strategy reversal has halved Porsche’s market value since May 2023, when it briefly exceeded parent company Volkswagen’s worth. The automaker is also facing leadership changes, with discussions underway regarding the contracts of CFO Meschke and sales chief Detlev von Platen.


Information for this story was found via Electrek, Automotive News Europe, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Military Seizes Power in Madagascar After President Flees

Altamira Gold Hits 395.5 Metres Of 0.4 g/t Gold At Maria Bonita

Related News

US Auto Lobby Group Calls on More Government Support for Electric Vehicles

As the hype surrounding electric and autonomous vehicles continues to accelerate, a major lobby group...

Sunday, December 20, 2020, 11:23:00 AM

Stockholm to Ban Gasoline and Diesel Cars Beginning 2025

Stockholm, Sweden, is set to become the first European capital to impose a ban on...

Wednesday, October 18, 2023, 12:29:00 PM

Start-Up EV Maker Rivian Files Paperwork for IPO

On August 27, the private start-up electric vehicle manufacturer Rivian submitted a widely anticipated confidential...

Tuesday, August 31, 2021, 03:37:00 PM

Global Impact of China’s Lithium Battery Price Drop: What It Means for the Future of EVs

Prices for lithium-ion batteries in China are plummeting, marking a significant turning point for the...

Thursday, July 11, 2024, 08:01:00 AM

Lordstown Motors Plummets 60% After Bankruptcy Filing And Foxconn Lawsuit

Lordstown Motors Corp (Nasdaq: RIDE), the U.S. electric truck manufacturer, has filed for bankruptcy protection...

Tuesday, June 27, 2023, 09:00:24 AM