Porsche Is Experiencing An EV Crisis
Read the full story on The Auto Wire
It's no secret demand for EVs is dropping drastically and Porsche is suffering as a result. Despite some trying to pretend only Tesla is dealing with the electric car slump, everyone's feeling it. But that's only part of the woes plaguing Porsche as the German brand grapples with several challenges at once.According to an explosive report from Automotive News, Porsche has been to aggressive on EVs and now it's paying the price. We find this a bit ironic coming from a publication that just a year ago was rather bullish on electric cars, but it shows how quickly and drastically the market has shifted.
In the report, industry analyst Fabio Holscher of Warburg Research is cited, who gives his expert opinion that Porsche's goal of going 80 percent electric by 2030 is just too much. It wasn't that long ago that Toyota and some other brands were getting scorched by the media and industry analysts for not pushing forward on electrification aggressively enough, for what it's worth.
Without getting too much in the weeds there, Holscher says thanks to Porsche trending behind on its own aggressive adoption strategy, it's having to come up with some new gas-burning cars in the meantime, multiplying its development expenses.
But there's more. As we've covered before, foreign automakers are increasingly getting the cold shoulder in China. Some media outlets portray this as just a function of Chinese automakers having better products, but there is a hyper-nationalistic movement going on in the Middle Kingdom along with the communist government encouraging the patriotic purchase of Chinese cars.
Porsche in the past has capitulated to China even though everyone knew the Chinese Communist Party would eventually close the door on foreign companies. And now they're getting squeezed out of a market the Germans have become quite dependent upon.
Then for good measure Automotive News talks about the tariffs taking a bite out of Porsche financially. The automaker isn't having a great time right now. But it's survived worse in the past, so hopefully it will ride out this storm and be stronger for it.
Source: Automotive News
Image via Porsche
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