Porsche announces drastic EV volte-face
New 'K1' SUV to launch as combustion only; existing ICE cars to continue 'well into 2030s'...
Just in case any further proof were required of the tumult currently engulfing the automotive industry, Porsche has confirmed the ‘final steps in the realignment of its product strategy’. Which all sounds innocuous enough, as corporate speak tends to, but it means a drastic rowing back on its rollout of electric vehicles.
Perhaps the most emphatic proof comes from the change in approach to a flagship SUV above the Cayenne. A car that was going to be electric only is now going to be combustion- and PHEV-powered from launch, part of a move for the ‘product range is to be specifically supplemented by brand-defining vehicle models with combustion engines.’
There is no mention of when, or indeed if, an electric version will happen. The lukewarm response to other XXL SUVs without engines has obviously influenced the decision. As for the regular Cayenne, a car that claimed a Shelsley Walsh record recently and will feature wireless charging, looks to be on track with every possible powertrain option. Porsche added that the SUV and the Panamera ‘will be available with combustion engines and plug-in hybrids well into the 2030s’.
Indeed lots of Porsche launches are being rescheduled, most notably the fully electric offerings. A new EV platform was coming in the 2030s, but will now go back to the drawing board (alongside other brands in the VW Group) owing to the ‘slower growth of the demand for exclusive battery-electric vehicles’. Porsche is at pains to point out that it’s not abandoning battery power - the 718 is still on the way, and the current lineup will be ‘continuously updated’ - though it’s clearly a significant change of course, one that will see the firm take a 1.8 billion Euro hit.
Though it did not dwell on the subject in a short press release, it has been suggested that ‘top’ derivatives of the previously all-electric 718 may feature internal combustion engines. Clearly a nod to battery power’s failure to excite big-spending enthusiasts, it will likely mean than that future RS models continue to incorporate a flat-six.
A pause on EV development means engines will hang around for longer elsewhere, too. So as well as the Panamera and Cayenne already mentioned, that has to mean the 911 as well (if that was ever in doubt). ‘New generations of successor models have been added to the Cycle Plan for these vehicle models’, all but confirming that petrol-powered Porsches will remain a long-term feature not just of existing cars, but incoming ones, too.
“These decisions build on the previously announced initiatives and help us to achieve a very balanced portfolio,” said CEO Oliver Blume. “This increases our flexibility and strengthens our position in a currently highly volatile environment. With a convincing mix of combustion engines, plug-in hybrids and battery-electric vehicles, we want to meet the entire range of customer requirements. In the medium term, this approach is intended to support our business model and strengthen our market position.”
The new direction of travel will come at significant cost elsewhere, VW having already warned that a delay to Porsche’s EV plans might ultimately put a 5.1 billion euro dent in its profits. Additionally, on a call with reporters on Friday, Blume even suggested that he was “counting on flexibility” from the EU on its ban on selling combustion engine cars from 2035 - a sign of just how adamant Porsche has become that combustion remains an integral part of its long-term future.
How does making the cars customers want to buy put a EUR5bn dent in your profit? Or is that from all of the fines they’ll have to pay for not achieving government mandated EV quotas comrade?
I found the whole EV debacle both fascinating and frustrating in equal measure to be honest.
It's going to be fractious, as there's plenty with no automotive industry who are very punchy in showing the world they're green.
I found the whole EV debacle both fascinating and frustrating in equal measure to be honest.
It’s the lack of second user appeal that was the problem initially, and now they’re at the point where business owners know they’ll get kicked in the nuts at resale if they buy them, so I assume most newer cars for sale now are ex lease. There’s been 700-800 listed on Autotrader for literally years.
It's going to be fractious, as there's plenty with no automotive industry who are very punchy in showing the world they're green.
The manufacturers signed up to the Euro 7 timelines and they were modified to give them a bit more time to comply only at the beginning of this year. I really can't see them shifting any further. 2035 is long enough to run out ICE in Europe, really can't see that changing now.
There's decent demand for EVs where they appeal to the market - but there's huge swathes of the (global) market who have very limited desire for them. Porsche especially sits in an awkward place, requiring high volume but in a section of the market where they're emotional purchases and those that can afford them (without BIK shenanigans) simply don't want EV.
We also 'know' that just like lithium chemistry transformed personal electronics, it's solid state that'll really drive a transformation in EV capabilities. They're just not quite there yet - and I don't see European firms holding back on R&D with them either regardless of a ban on ICE.
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