Porsche once had one of the most ambitious electric car strategies in the industry, but now the Swabians are announcing a change of course – back to the combustion engine. These are the reasons.
Weakening demand at Porsche leads to a change of direction in powertrain systems.
Porsche AG
At first glance, electric cars and Porsche don't seem to go together. Where there was once the roar and stench of the supposedly old world of combustion engines, only a quiet hum could be heard at the end. Nevertheless, the Zuffenhausen-based company had set itself ambitious goals – now, among other things, they are adjusting their strategy due to weak demand and problems in China.
The group, which is majority-owned by Volkswagen, wants to use a lot of money to combat the crisis: Porsche expects additional costs of up to 800 million euros in 2024 – among other things, to develop new cars with combustion engines or plug-in hybrid drives. In addition, investments are to be made in battery activities and the organization is to be restructured. Why does Porsche have to rethink?
Farewell in Installments
For a long time, Porsche had one of the most ambitious electric car strategies in the industry. By 2030, more than 80 % of its sports and off-road vehicles were to roll off the production line with a battery-electric drive. The electric motor is superior to the combustion engine in the long term, Porsche CEO Oliver Blume emphasized on more than one occasion. The plan so far was to gradually convert almost all models to electric drives. The 911 was the exception.
There have been signs for some time that the company is backpedaling on its ambition. At first, it was emphasized that the goal was dependent on demand and the development of e-mobility in the world. Later, it was said that existing combustion models would be refreshed and built in parallel for some time. In the fall, the now disgraced CFO Lutz Meschke announced that the company was considering giving vehicles originally planned as purely electric a hybrid drive or a combustion engine in the future. The worm must taste good to the fish, they said.
China: A Problem Child
Because that doesn't seem to be the case at the moment: Demand for cars from Zuffenhausen is weakening. Last year, Porsche sold a good 310,700 - 3 % fewer than in 2023. In China, the world's most important car market, the drop was 28 %. Porsche blames the difficult economic situation in the region for the decline.
Only a small proportion of vehicles sold had an electric motor: The Taycan, on the market since 2019 and modernized last year, has recently sold poorly. A good 20,800 vehicles were delivered in 2024. Compared to the previous year, this number has almost halved.
Last year, after long delays, Porsche also switched the Macan compact SUV to electric drive in Europe. The car is now coming to customers in the middle of the electric lull. From September to December 2024, almost 18,300 units were delivered. It is quite possible that this model – so far a bestseller – will also get a combustion engine again. Porsche has not yet provided any details on the change in strategy.
Dudenhöffer: Porsche Needs Combustion Engines
For automotive expert Ferdinand Dudenhöffer, the return to the combustion engine is a logical step. "Like Mercedes and VW, Porsche relied on the words and promises of politicians in Brussels and Berlin. And they were left with it." The funding for electric cars was cut overnight. Similarly, politicians told the story of synthetic fuels and the eternal life of the combustion engine. "Our politicians have thus reversed the thinking of customers", said Dudenhöffer.
That is why you need a combustion engine now. Porsche not only needs the Macan to be available with a combustion engine again, but also the other models. "The moral of the story: you chase carmakers from one bad investment to the next. Porsche has no choice but to invest again in the further development of combustion engines, just like Mercedes, BMW and others."
And Stefan Reindl from the Institute for the Automotive Industry says: "The ongoing reports from the company will probably lead once again to a discussion of the dual role of Oliver Blume as Porsche CEO and as CEO of the Volkswagen Group." It is possible that he will have to give in to this pressure in order to get the profit center Porsche back into calmer waters after the restructuring of the board.
This is a partly automated translation of this German article by dpa.
