Porsche slows electric shift, prompting VW profit warning

"German sports car maker Porsche said Friday that it would dramatically slow its shift to electric vehicles amid weak demand, prompting parent company Volkswagen to warn of a multibillion-euro hit. It was the latest turmoil for 10-brand VW, Europe's biggest carmaker, which is struggling not only with a stuttering EV transition but also fierce competition in China. "We're realigning Porsche across the board," said CEO Oliver Blume, as the carmaker announced plans that amounted to a major rollback of its EV ambitions."

"Volkswagen said the changes to the sports car maker's EV plans and other charges would negatively impact the overall group's operating results by €5.1 billion ($6 billion) in the 2025 financial year. Among measures announced by Porsche was a delay in the introduction of some fully electric cars, and extending the life of some combustion engine and hybrid models. A new SUV series -- which was originally to be launched as fully electric -- will now be exclusively offered as combustion engine and hybrid"

"The maker of the 911 sports car cited the "significant slower growth of the demand for exclusive battery-electric vehicles" as a reason for making the changes. The manufacturer had already announced last month that it was abandoning plans to mass-produce its own electric car batteries. As a result of the changes, Volkswagen also cut its forecast for operating profit margins -- closely watched by investors -- to a range of two to three percent for 2025, down from a previous forecast of four to five"

Porsche will dramatically slow its shift to electric vehicles amid weak demand, delaying the introduction of some fully electric models and extending the life of combustion-engine and hybrid models. A planned SUV series originally intended as fully electric will launch with combustion and hybrid powertrains. Volkswagen warned the changes and related charges will reduce the group's operating results by €5.1 billion in 2025 and cut its operating margin forecast to 2–3 percent for 2025. Porsche cited significantly slower demand growth for exclusive battery-electric vehicles, abandoned plans to mass-produce batteries, faces falling luxury demand in China, and announced 1,900 job cuts.

Read at The Local Germany