Electric cars second: Porsche initially focuses on combustion engines again

Porsche is pursuing the preliminary change of course it initiated several months ago, moving away from electric cars and back to roaring combustion engines. On Friday, the luxury car manufacturer announced that it would now primarily offer the planned all-electric SUV series above the Cayenne as combustion engines and plug-in hybrids when it launches on the market. Furthermore, the vehicle manufacturer, which belongs to the Volkswagen Group, intends to keep models such as the Panamera and Cayenne with these more traditional drive types available well into the 2030s. Successor models are also planned for these brands.

In return, the company is postponing the introduction of certain all-electric models "due to the delayed ramp-up of electric mobility." The development of a new electric car platform, which was planned for the 2030s, will take place later and will be redesigned in coordination with the parent company.

"We are taking the final step in the realignment of our product strategy", Porsche CEO Oliver Blume explained . He describes the turnaround as an adjustment to market volatility and emphasizes that the company will continue to offer a compelling mix of combustion engines, plug-in hybrids, and fully battery-powered sports cars (BEVs). The aim is to cover the entire spectrum of customer requirements. Existing fully electric models such as the Taycan, Macan, and the future two-door sports car in the 718 series will be further developed and marketed.

This is how much technological openness costs

The strategic realignment entails considerable financial burdens. In addition to external factors such as higher US import tariffs and the market decline in China, depreciation and provisions in connection with the rescheduled electric platform are contributing to the additional financial burden.

In the 2025 fiscal year alone, Porsche expects costs of up to €1.8 billion for this reason. Overall, the Zuffenhausen-based company expects extraordinary expenses of around €3.1 billion in the current fiscal year in connection with the model adjustment. The price for the old-new "technological openness" is likely to total just under €5 billion this year alone.

The turnaround also means an adjustment to the forecast for the 2025 fiscal year. While expected revenue remains steady at €37 to €38 billion, estimates for profitability are down significantly: the operating return on sales is now expected to be up to 2 percent, compared to the previous forecast of 5 to 7 percent, the company warned. Due to lower profitability, the proposed dividend for 2025 will be significantly lower than in the previous year, although it is expected to exceed the medium-term payout ratio of 50 percent in percentage terms.

The stock market reacts

Porsche CFO Jochen Breckner described the "strategic investments" as necessary to strengthen the long-established company in the long term and make the brand more resilient, even if they weighed on financial results in the short term.

The announcement put Porsche and VW shares under severe pressure. In late trading in Frankfurt, Porsche shares fell by around 2.5 percent, and by as much as 4.1 percent on the Tradegate trading platform. Volkswagen also recorded significant price losses, as the group expects a burden of 5.1 billion euros on its operating result. This loss in value results from Porsche's lowered forecast and the associated write-down on its stake.

No other VW brand had set its sights as high as Porsche when it came to electric mobility. But not much remains of this approach. The company has not only distanced itself from its ambitious e-goals, but has also already abandoned its plans to manufacture its own batteries. Different rules apply to the rest of VW. Audi CEO Gernot Döllner, for example, recently emphasized that the electric car is "simply the better technology." It belongs to the future.

(nie)