The transition to electric car It is being a nightmare for the vast majority of brands, even for a brand like Porsche. The Porsche Taycan, presented in 2019, is considered a success. The electric sports car from Zuffenhausen has since been one of the most popular Porsches, with more than 100,000 units manufactured since its launch. However, the global sales of the brand’s first electric plummeted 50% in the first three quarters of the year.
The consequence of the sales crisis: jobs are on the line. According to the newspaper Stuttgarter Zeitungthe contracts of some 1,000 temporary workers have no longer been extended. According to Automobile Weekuntil 8,000 jobs at Porsche are at risk in the long term if electric sales do not improve.
Electric car sales plummet
The shift to electric mobility seemed to be going on rails for Porsche. The Taycan was selling better than the Panamera and its sales were close to those of the Porsche 911. Porsche’s strategy of electrifying its entire range except for the 911 seemed on track.
However, with sales of the Taycan in free fall in China, its main market, and a new electric Porsche Macan that has not quite taken off with the difficult task of succeeding a model that in 2023, in its gasoline versions, was the second The brand’s best-selling model, Porsche is rethinking its electric strategy of 80% electric sales by 2030.
The reasons for weak sales are complex. Outside of China, there is currently a reluctance to buy electric cars. Sales in the United States are maintained thanks essentially to Tesla, while in Europe the electric vehicle market has fallen by 5.4%.
The global demand for electric cars is essentially in China, where German brands are in free fall. In any case, Porsche has only been able to occupy a limited niche in the electric vehicle business there. Porsche sales in China plummetn a spectacular 30% in 2024 and almost one in three Porsche dealerships in the Asian country will close in 2026.
The new Porsche Macan EV, positioned almost 25% more expensive than the gasoline Macan, should not help to boost sales. As for the Porsche Boxster and Cayman, Porsche’s least-selling models, their electric versions have been delayed again due to technical issues related to their batteries and the production of their gasoline variants could be maintained longer than expected.
Lutz Meschke, CFO of Porsche, has stated that the company must adjust its cost structure to a planned annual sales volume of around 250,000 vehicles. This adjustment could lead to layoffs, which could affect more than 8,000 employees, almost 20% of Porsche’s workforce of 42,000.
However, Porsche continues to make a lot of money. The Porsche 911, a model with huge margins, sells very well, as does the Cayenne and its more than 80,000 units a year. Porsche remains very profitable, with an average margin of 14% in the first nine months of the year. A margin that other manufacturers can only dream of. Therefore, rumors of large-scale workforce cuts could still be premature.
In any case, with demand for electric cars lower than expected, the brand is reevaluating its strategy. “One thing is clear: we will keep combustion engines much longer”declared Porsche CFO Lutz Meschke. A few months ago, he also explained that the brand would develop hybrid versions along with the electric ones of future models.
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Source: www.motorpasion.com
