Electrification has taken a back seat at Porsche in Zuffenhausen. The management will now focus more on the combustion engine.
Porsche is now increasing its focus on the combustion engine. The carmaker has announced an investment of 800 million euros in the development of new gasoline engines.
The decision comes after a period of declining sales of Porsche's electric cars, and marks a shift in the company's previous strategy of focusing primarily on electrification. Porsche previously aimed for 80 percent of its sales by 2030 to be electric.
The Porsche Taycan models have experienced a decline in sales in 2024, and Porsche's overall sales have been challenged, especially in the important Chinese market.
It is also the decisive drop in sales to the Chinese that is said to have caused Porsche to change course. As a consequence of the recent challenges, Porsche has made changes to its management, with both the CFO and the sales director being fired.
The board of directors of Porsche has already approved the new investment, which will go towards the development of combustion engines and plug-in hybrids.
The German brand also plans to put combustion engines in some of its existing and upcoming electric car models.
It has already been confirmed that the Macan model is one of the models that will once again get a combustion engine between the front wheels.
Although the primary focus is on internal combustion engines, part of the investment will also go towards developing batteries for electric cars.
Porsche has not disclosed the exact amount of this part of the investment, but told FAZ that the investment is part of a series of measures to "strengthen the company's profitability in the short and medium term."
There have been no further comments, but it is clear that the market's reaction to the electric cars from Zuffenhausen has caused management to change course.
