A trade war between Europe and the US and difficult sales in China are causing Porsche to turn towards the combustion engine and promise petrol cars "well into the 2030s".
Porsche is now committing to building gasoline cars well into the 2030s.
The decision is due, among other things, to Porsche's declining sales in the Chinese market. In addition, the Germans' focus on electric cars has failed.
The reason is partly the subdued demand for the electric models Macan and Taycan. The latter is losing an awful lot of money on the used market. And that after just 28 days. Read more about it here.
The new plan consists of an investment of 800 million euros. The money will be used to develop new combustion engines. The new engines will keep Porsche's range of fossil-fuel cars running for many years.
This is reported by Automotive News .
And it may become imperative for Porsche to change tack in relation to the electric car. The increased competition in China is seriously pressuring the brand's finances.
When Porsche recently presented its annual accounts, management said that it would also have to raise prices in the US due to Donald Trump's threats of punitive tariffs.
However, they expressed hope that a "reasonable" tariff system will be introduced. Finance Director Jochen Breckner says that they will now wait and see what the Americans will actually do.
– When the topic becomes concrete, we will consider what pricing options are available to pass this on to consumers.
As a consequence of declining sales in China, Porsche has also lowered its expectations for the business.
The automaker is now aiming for a margin of 15 to 17 percent in the medium term, after previously aiming for up to 19 percent.
Porsche shares fell significantly last month after the company said its margin for the current year would be 10 to 12 percent per car.
This is due to investments in new models with both combustion engines and plug-in hybrids. The expected margin for 2025, which is based on sales revenue expected to be roughly the same as in 2024, of 39 to 40 billion euros, just does not take into account any new tariffs that Trump may impose on car imports from Europe.
Porsche is planning the launch of a new 911 model and is also considering a new SUV series at the end of the decade. A car that will now most likely have a combustion engine.
Despite the investment of 800 million euros, the brand from Zuffenhausen will not escape cuts. Specifically, 1,900 employees will be laid off, while another 2,000 employees on fixed-term contracts will not be offered more work.
In Denmark, where electric cars dominate the new car market, Porsche experienced a relatively positive 2024 with sales of 684 cars, with the Macan being the most popular model.
A number that is, however, nothing compared to the situation in Norway, where 1,523 Porsche models were sold in the same period. An increase of a whopping 210 percent compared to 2023.
