Porsche delays new electric car after demand slump
Porsche has delayed the launch of its new electric vehicle (EV) as weak demand forces the German car manufacturer to focus on petrol and diesel engines.
The company, owned by Volkswagen, said the launch-date for an EV version of its new SUV had been scrapped and the model would instead be sold as a combustion engine and plug-in hybrid version.
Porsche said the delay was a “response to the significantly slower growth of the demand for exclusive battery-electric vehicles”.
Because of Porsche’s move, owner Volkswagen warned the delays would deliver a €5.1bn (£4.4bn) hit to the group’s operating profit during this financial year.
Oliver Blume, chief executive of both Porsche and Volkswagen, said in a statement: “Today we have set the final steps in the realignment of our product strategy.
“We are currently experiencing massive changes within the automotive environment. That’s why we’re realigning Porsche across the board.”
The new range was planned to be released in the 2030s, but the luxury carmaker did not give a new timeframe for the launch of the new EV series.
Porsche added that its existing combustion engine models would remain available for a longer period.
The delays to Porsche’s EV roll-out are a costly blow for Volkswagen.
The group, which is Europe’s biggest carmaker, announced it would write down the value of its shares in Porsche by €3bn after the luxury carmaker revised its long-term plans.
Volkswagen also said it would take a €2.1bn hit to its operating profits this financial year.
Dr Jochen Breckner, chief of finance and technology at Porsche, said: “With this clear plan, we are recalibrating the company for long-term success in a world with challenging conditions.
“We recognise that these strategic investments weigh on our short-term financial results – but they are essential.”
The group cut its forecast for operating profit margins for 2025 to between 2pc to 3pc, down from its previous expected profit margin of 4pc to 5pc.
Europe’s car manufacturers have been struggling with an uncertain environment as they face EV competition from Chinese rivals, such as BYD, and manage a financial hit from Donald Trump’s import tariffs.
Mr Blume said the automotive industry was grappling with a “highly volatile environment”.
Last week, senior leaders from Europe’s car industry, including the bosses of Stellantis, BMW and Mercedes-Benz, met with Ursula von der Leyen to call for the EU to relax emission targets set by the bloc to tackle climate change.
The EU currently plans to ban the sale of new petrol and diesel cars by 2035 but carmakers have warned the target is not achievable.