A $ 5.11 billion blow that the Volkswagen Group would suffer (VW) Due to an extensive reform of products in the section of sports cars Porsche.
Specifically, Porsche Cayenne, which is supposed to be fully electric, was announced to continue to be manufactured with internal combustion engines and plug-in hybrid systems until the 2030s. which is evolving slower than expected, Reuters reports.
“We are seeing huge changes in the environment of the automotive industry. We have made basic strategic decisions. Now is the time to apply them. It will be a difficult and long road and will demand our full focus and strong effort, “Oliver Bloom, Managing Director of both Porsche and VW Group, told analysts and journalists, citing a clear decline in demand for exclusively.
Bloom said Porsche programmed the production of its models based on the European Union’s initial decision, which has determined that all new cars should have zero emissions after 2035, essentially banning the sale of new gasoline and diesel models to boost the market for the car.
After intense pressure from the automotive industry, the European Commission has agreed to expedite the revision of the target by the end of this year, instead of the previously scheduled 2026.
Porsche is withdrawn from its electric vehicles. Porsche is now expecting to launch an SUV flagship that will be mounted over Cayenne initially with internal combustion engines and plug-in hybrid engines instead of being fully electric as previously planned.
Panamera and SUV Cayenne Sedan will continue to be manufactured with internal combustion engines and plug-in hybrid systems until the 2030s. A new scheduled Bev platform will “be rescheduled for the 2030s”, Porsche said, the Automotive News Europe reports.
The change of strategy is expected to reduce Porsche’s operating profits by up to 1.8 billion euros this year. VW and Porsche reduce the goals for profit margin. Both the VW and Porsche group also reduced their profit margin targets for this year.
The VW Group reduced the forecast for the operating margin of between 2%and 3%, from 5%. Porsche now provides for a functional profit margin that will not exceed 2%, reduced from the previous range of 5%to 7%, for 2025. This is the fourth time Porsche reduces its forecasts this year.
Porsche also reduced its medium -term profit margin target to 15% from the highest threshold of 17% previously.
“These are no profit room that one would expect to see in a luxury product, at least not in a successful one,” said UBS analyst Patrick Hamel during the September 19 teleconference, the Automotive News Europe reports.
Porsche finds it difficult to meet the expectations of its successful importing on the Stock Exchange in 2022, with the deceleration of duties in China and the US also having an impact. The price of the share has fallen so low that the company is withdrawing from DAX, the German reference index.
After replacing several executives, Porsche tries to recover by adding more models with internal combustion engine and plug-in hybrid models and reducing costs. The automotive industry cuts 1,900 jobs in Germany, accounting for 15% of the workforce. She also abandoned a plan to produce her own batteries due to the low demand for electric vehicles.
High US duties still apply. Bloom said the planned reduction in US car import duties to 15% from current 27.5% could take weeks, as talks between Brussels and Washington are ongoing.
VW is in discussions with the US government about an investment package that Blume said he could cover Porsche, without being more specific, Bloomberg said.