Latest news with #Automobilwoche
Hindustan Times
15-05-2025
- Automotive
- Hindustan Times
Porsche adjusts electrification strategy with job cuts and lower sales targets. Check details
Porsche had set an ambitious goal of transitioning to 80 per cent battery-electric vehicle (BEV) sales globally by 2030. Porsche had set an ambitious goal of transitioning to 80 per cent battery-electric vehicle (BEV) sales globally by 2030. (Bloomberg) Check Offers Porsche, with its tradition of sports and luxury performance cars, is being reshaped in the midst of the challenges of a global consumer marketplace and realignment of strategies. The automaker was confronted with an authentic consumer paradigm shift, heightened competition within the primary markets such as China, and a distinct set of challenges related to the rollout of its electrification so seriously that it has led to a maturity of its targeted goals on production and business with respect to the creation of new realities. The company had set an ambitious goal of transitioning to 80 per cent battery-electric vehicle (BEV) sales globally by 2030. This strategy, however, has encountered delays. As a result, the development timelines for several upcoming models—such as the electric replacements for the 718 Boxster and Cayman, as well as a three-row electric SUV—have been pushed back. Also Read : Watch: $240,000 Porsche 911 GT3 RS destroyed after burnout stunt ends in disaster As per analysts, the company's previous emphasis on a BEV-dominant scenario, with limited integration of plug-in hybrids or multi-energy platforms, constrained its resilience. Brands that embraced more flexible architectures, enabling either electric or internal combustion propulsion, were best placed to counter-varying EV demand. Features and market ynamics Sales performance has also been affected in major markets. In China, Porsche's first-quarter sales fell by 42 per cent from the same period a year ago. The Chinese electric vehicle market has grown very fast, with local manufacturers launching high-performance EVs at affordable prices. Models such as the Xiaomi SU7 Ultra and Yangwang U9 are providing sophisticated features like four-figure horsepower outputs and active suspension systems, putting pressure on traditional global brands. Also Read : Porsche 911 Spirit 70 unveiled at Shanghai Auto Show as homage to the '70s era In February 2025, Porsche disclosed the elimination of 1,900 positions in its research and production centers in Germany. The company attributed the move to a delayed ramp-up in its electromobility efforts. German publication Automobilwoche reported that the company has lowered its 2025 sales revenue target by approximately €2 billion (around $2.2 billion), and that up to 8,000 additional jobs could be affected depending on future developments. Specifications and internal developments As Porsche develops its product plan more precisely, the technical specifications of its next-generation EVs will most probably respond to competitive standards being established within global markets. As active chassis systems and high-output electric drive units become standard fare, particularly in China, Porsche's next-generation products must meet changing customer expectations and technical benchmarks. In response to current challenges, the company has also implemented changes in leadership. Michael Steiner, previously a senior development executive at Volkswagen Group, has been appointed deputy chairman of Porsche's executive board. Earlier in 2025, the automaker also announced changes to its finance and sales leadership. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 15 May 2025, 09:00 AM IST
Yahoo
14-05-2025
- Automotive
- Yahoo
Porsche faces mounting problems, rattled by China slump, weak EV demand and U.S. tariffs
Porsche is battling a mounting crisis as sales in China collapse, sales in the U.S. are impacted by higher tariffs and its electrification strategy falters. It's a major shakeup for the Volkswagen Group subsidiary, which a little more than a year ago reaffirmed that 80 percent of the new Porsches sold globally would be full electric by 2030. When Porsche looked east it saw untapped potential in China. The future looked so bright. Within the last 14 months, Porsche has walked back its plans for 50 percent of its vehicle sales to be battery-electric vehicles and plug-in hybrids by 2025. On Nov. 26, Porsche said it would develop new combustion-engine derivatives after global sales of BEVs slumped on weak demand in China. Porsche has also delayed the introduction of the electric 718 Boxster and Cayman and a new three-row flagship SUV, according to Automotive News Europe sister publication Automobilwoche. The automaker has cut its full-year sales revenue forecast to €37 billion to €38 billion, down from €39 billion to €40 billion previously, citing U.S. tariffs and low demand in China for its BEVs. Porsche will likely further adjust its forecast downward this year, unless the U.S.-EU trade dispute is resolved, Michael Punzet, analyst at DZ Bank said in an investment note. Porsche expects a dip in U.S. sales after consumers pulled forward purchases earlier this year to beat tariffs, procurement chief Barbara Frenkel said on May 13 at a conference organized by the Financial Times in London. How have things gone so wrong for one of the world's most profitable premium brands? According to Fabio Hölscher, analyst at Warburg Research, Porsche's initial strategy to have all its models fully electrified, apart from the 911, is at the root cause of the problem. Sign up for the Automotive News Europe Interview of the Month newsletter delivering exclusive interviews with top auto executives. 'Porsche's original model portfolio plans are what currently amplifies these market-driven setbacks,' Hölscher said in an emailed reply to questions. 'Because the battery electric adoption is behind schedule, Porsche now has to develop additional combustion models on top of dealing with the costly delays in BEV ramp-up, as well as managing the weak situation in China and uncertainty around U.S. exports.' He added that to transition to electric Porsche would have benefited from adopting 'a more flexible production approach between combustion and BEV cars, like BMW did.' To reverse the slide, Porsche plans to implement restructuring measures and cut thousands of jobs. As many as 8,000 jobs are at stake, according to Automobilwoche. Porsche did not reply to an emailed request for a comment. Fierce competition in China is hitting Porsche hard. The automaker's first-quarter sales in China were down 42 percent compared with the year-earlier period. The high-end sports car maker attributed this to the 'very challenging market conditions, especially in the luxury segment, and the high level of competition in the Chinese market.' This is in sharp contrast to 2021, when Porsche's sales in China peaked at 95,671 cars and China was Porsche's largest-single market for the seventh consecutive year. 'For Porsche and all German automakers, the biggest problem is China,' Gartner Vice President of Research Pedro Pacheco told Automotive News Europe. 'For several decades, China was the gift that kept on giving. Porsche built a great market presence in China – a market with tremendous growth and opportunity.' Now, Chinese startups are moving into Porsche's domain, introducing sleek, sporty challengers that are technically advanced yet affordable. While the Chinese alternatives might not be as high performing as Porsche's cars, they attract consumers by offering value for money. 'Ultimately, this changes the goalposts for Chinese consumers,' Pacheco said. He said what Porsche offers in terms of performance and software-related features needs to be worth it in the customers' eyes. 'Porsche will not like to sell their cars at a discount so the only other option is to raise the bar in what they deliver in terms of product,' Pacheco said. Warburg Research's Hölscher believes Porsche should sit out the storm. 'We think some effects are temporary and need to be endured as cost sensibly as possible,' he said. 'Softer overall demand, (for luxury cars especially) will likely recover at some point. 'Cheaper' Chinese/local alternatives might also become more expensive down the line and lose some of their competitive edge versus foreign manufacturers.' In the midterm, new Porsche models with technology and features more catered to the Chinese market should also help Porsche regain market share, Hölscher added. Nevertheless, China, because of its size and what it represents in terms of potential for growth remains crucial to Porsche's future, Pacheco concluded. U.S. tariffs, in place since April at 25 percent, are expected to raise car prices by thousands of dollars, adding to Porsche's woes because it imports all its vehicle from Europe. Going forward, it is unlikely that Porsche would set up a U.S. manufacturing base as this would require a lot of capital and time, Hölscher said. Instead, Porsche could benefit by working together in the U.S. with VW Group, Pacheco pointed out. Porsche is also being weighed down by battery supply issues. In June 2021, it set up Cellforce to develop and produce its own innovative high-performance cells. 'This positions us at the forefront of the global competition for the most powerful battery cell,' Porsche CEO Oliver Blume said at the time. Now, Porsche no longer plans to expand high-performance battery production at Cellforce, citing falling demand in China when presenting its quarterly figures at the end of April. 'The project is not economically sustainable in the short-term given the slower adoption of fully electric vehicles compared to initial expectations,' Hölscher said. 'At the same time, other battery players are competitive. Thus, it makes sense to continue using the scale effects of other suppliers like CATL until the adoption of fully electric cars stabilizes.' Moreover, it seems unlikely that an investor for Cellforce will be found in the short term, he added. Meanwhile, on March 1, Porsche acquired a majority stake in Varta's e-mobility battery unit in a bid to secure a supply of high-performance cells for its EVs. Porsche is looking to new managers to steer it out of a crisis. Effective July 1, Michael Steiner will take on the role of deputy chairman of the executive board, the No. 2 position at Porsche, quitting his wider role as VW Group's head of development. In addition, Joachim Scharnagl will succeed Barbara Frenkel as head of procurement in August. Starting Aug. 19, Vera Schalwig will take responsibility for the human resources and social affairs division, succeeding Andreas Haffner. Earlier this year Porsche replaced its chief financial officer, Lutz Meschke, and head of sales Detlev von Platen after both came under heavy criticism for the company's poor performance and weak share price. Jochen Breckner replaced Meschke as finance chief and Matthias Becker was appointed head of sales. The personnel changes 'underscore the severity of the situation and show that the organization is being recalibrated to better fit current market trends,' Hölscher said. Automobilwoche and Reuters contributed to this report. 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Motor 1
08-05-2025
- Automotive
- Motor 1
Porsche Is Still Testing the Electric Cayman and Boxster
Porsche has come to grips with the reality that EVs won't take over as quickly as it had projected. As a result, it has decided to keep V-8 engines well into the 2030s and is even considering a new gasoline crossover to replace the first-generation Macan. For now, an electric 911 remains off the table, and the Panamera will retain its internal combustion engine setup into the next decade. However, the 718 models are going electric, and only electric. Following the launch of the Cayenne EV later this year, replacements for the Boxster and Cayman are expected to arrive in 2026. It's unclear whether both will debut simultaneously; the convertible could be introduced first. Meanwhile, the next-gen sports car duo has been spotted at the Nürburgring, sporting Porsche's usual deceptive camouflage. The hilariously fake exhaust seen on earlier prototypes is now gone. We're not expecting major styling changes beyond what Porsche's current design language dictates. The Cayman appears to resemble a smaller Taycan coupe, though it could easily be mistaken for a downsized 911. Of course, the body-colored camouflage hides the true design, so it's best not to judge appearances just yet. Zuffenhausen has been tight-lipped about the cars, aside from confirming they'll ride on a dedicated electric platform. At the end of last year, Automobilwoche , the German arm of Automotive News Europe , reported the EVs were 'well behind schedule' due to battery-related issues requiring 'constant adjustments.' Porsche hasn't confirmed this, so the report should be taken with a grain of salt. While the electric Cayenne arriving later this year will coexist with the gasoline version for several more years, the current Boxster and Cayman will be retired to make room for the EVs. That's a bold move, especially considering 718 sales rose by 15 percent in 2024, reaching 23,670 units. This surge came despite the models being pulled from the EU market in July due to non-compliance with stricter cybersecurity regulations . Photo by: Motor1 Porsche Cayman EV rendering Porsche has been testing the electric 718 in public since 2022, and there's reason to believe it won't be a heavyweight. The Mission R concept, loosely based on a Cayman, tipped the scales at 3,306 pounds (1,500 kilograms), though that was a stripped-down race car. Whether a relatively lightweight electric sports car can win over EV skeptics remains to be seen. If only one car company can do it, it's definitely Porsche. The new electric Macan is off to a strong start, but crossover buyers are generally more open to EVs. On the other hand, sports car enthusiasts tend to prefer the thrill of a high-revving flat-six behind them. It's hard to imagine the EVs attracting the typical 718 customer. Pricing will also be a concern, as the new Boxster and Cayman will likely cost more than the outgoing versions, which already start at over $70,000. Keep Up With Porsche: Porsche Could Quit EVs In China The Porsche Panamera Will Have Gas Engines For a Long Time Get the best news, reviews, columns, and more delivered straight to your inbox, daily. back Sign up For more information, read our Privacy Policy and Terms of Use . Source: Carspotter Jeroen / YouTube Share this Story Facebook X LinkedIn Flipboard Reddit WhatsApp E-Mail Got a tip for us? Email: tips@ Join the conversation ( )
Miami Herald
06-05-2025
- Automotive
- Miami Herald
Audi may build future EVs in the United States due to tariffs
Business Audi may build future EVs in the United States due to tariffs In a move aimed at adapting to the rapidly changing tariff-centric trade environment, German luxury automaker Audi is said to be adjusting its production plans to reduce its exposure to the policies set forth by the Trump Administration. According to a new report by Automotive News and its German affiliate Automobilwoche, Audi could use VW Group manufacturing assets in the United States to build its vehicles. Currently, most of Audi's U.S. lineup is imported from Mexico and Europe-a problem that could spell trouble for the automaker, as 25% levies went live on May 3. Sources told the outlet that Audi could build the compact Q4 E-tron EV crossover at VW's plant in Chattanooga, Tennessee, while the bigger Q8 E-tron could see production moved from Mexico to the soon-to-be-completed Scout plant in Columbia, South Carolina. They also noted that Audi is looking for a potential U.S. site to build the Q6 E-tron. In a statement to the outlet, Audi did not confirm any plans to move production stateside. However, it reiterated that the U.S. is its "third global pillar" in its global growth strategy, alongside Europe and China. "We want to increase our presence in the U.S.," the spokesperson said. "We are currently examining various scenarios. We are confident that we will be able to decide on the specific details in consultation with the Group before the end of this year." The news comes as Audi posted a 12% year-over-year jump in quarterly revenue during Q1 2025, which it credits to increased sales of its EVs. From January to March, the brand took in 15.43 billion Euros (~$17.49 billion), an improvement from the 13.73 billion Euros (~$15.56 billion) a year ago. During the same announcement, Audi CFO Jürgen Rittersberger said the automaker is set to introduce 10 models for the U.S. market and that production facilities for these models would be decided later this year. Audi faces a challenging tariff scenario. Of the trio of German luxury leaders, including Mercedes-Benz and the Bavarian Motor Works, Audi stands alone as an "odd one out" because it currently does not have any manufacturing facilities in the U.S. While the X3 is built at BMW's sprawling manufacturing facility in Spartanburg, South Carolina, the Audi-badged rival is built south of the border. Audi's best-selling car, the Q5, is built at the brand's lone North American factory, in San Jose Chiapa, Mexico. Since it opened in 2016, the Mexican factory has produced over a million Q5s. In 2024, 56,799 Q5s were sold in the United States, accounting for more than a quarter of Audi's sales in the region. Related: Why Audi's Bestseller Might Vanish from US Dealerships Final thoughts This news underscores the logistical supply chain challenges that many automakers face, including ways to absorb the 25% tariffs on imported vehicles and car parts, which have come into effect fairly recently. Bloomberg reports that on May 2, the Trump administration announced that components that qualify for preferential treatment under the USMCA would be exempt from the 25% tariff. White House officials confirmed that Trump's move was made to help automakers relocate their parts supply chain to the United States. However, for Audi, it wouldn't be easy, as the Q5s it makes in Mexico are not USMCA-compliant. According to data from American Automobile Labeling Act (AALA) documents provided by the National Highway Traffic Safety Administration (NHTSA), just 2% of its parts are made in the U.S. or Canada-making them Q5 a giant red flag for tariffs. Related: Auto Insurance Industry Faces Up to the Self-Driving Car Revolution Copyright 2025 The Arena Group, Inc. All Rights Reserved. This story was originally published May 6, 2025 at 1:23 PM.
Reuters
11-04-2025
- Automotive
- Reuters
Mercedes to discontinue Citan and T-class models, Automobilwoche reports
BERLIN, April 11 (Reuters) - Mercedes-Benz will end production of its Citan and T-class models, the Automobilwoche news outlet reported on Friday citing a document informing dealers about the decision. The Citan model - for commercial use - and the T-Class - for private use - are to be phased out in the middle of next year together with their electric versions, the report said. Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here. This also marks the end of years of co-operation with French partner Renault on the series, it added.
