Camilla Jessen
Porsche writes off nearly $2bn on electric cars.
Porsche is pulling back from parts of its electric vehicle strategy as falling demand and heavy losses force a rethink.
Employees are now bracing for the consequences of a sweeping cost-cutting plan.
Billions written off
Porsche’s management has acknowledged that the company lost around $1.9 billion (£1.5 billion) on investments linked to electric cars.
According to German and international media, the losses stem from projects that failed to attract customers, particularly in China and the United States.
Sales of Porsche’s electric models have dropped sharply in both markets, prompting the company to halt or scale back several planned EV projects.
The admission comes as outgoing chief executive Oliver Blume leaves behind a brand facing serious financial strain.
Strategy reversed
As part of the change in direction, Porsche has decided that a planned SUV will no longer be offered solely as an electric vehicle. Instead, the company will lean more heavily on petrol engines and plug-in hybrid technology well into the 2030s.
According to AutoNews, Porsche is struggling not only with weaker demand for electric cars but also with tariffs and trade barriers that have made business more difficult. Management has concluded that large-scale investments in pure electric models are no longer financially viable for now.
Jobs under threat
To stabilise its finances, Porsche is rolling out a broad savings programme that will affect staff across several departments.
German media report that employee bonuses are being reduced and rules around working from home have been tightened.
While mass layoffs have not been officially announced, the company has not ruled them out. Early retirement schemes are being explored as an initial step to cut costs, but workers fear deeper cuts could follow if the situation worsens.
Combustion engine focus
Porsche has made clear that traditional models such as the Panamera and Cayenne, both powered by combustion engines, will remain central to its lineup because of strong customer demand.
A new petrol-powered successor to the Macan is also reportedly in development to secure future sales.
Sources: AutoNews, Boosted
