A lack of flexibility in product planning is said to be hurting the brand. Fierce competition in China – where high-performance electric cars are surprisingly cheap – is also a factor.
Once considered one of the world’s most profitable carmakers (by percentage), Porsche has seen sales decline and competition from electric rivals in China, and is reportedly delaying plans to launch a range of new electric products, including replacements for the 718 Boxster and Cayman, and a long-awaited three-row SUV.
According to a new report from Automotive News, the main reason is that the electrification strategy is too rigid and ambitious. Warburg Research analyst Fabio Hölscher believes that the goal of 80% of global sales to be electric by 2030 is the root of the problem.
“With the transition to electric vehicles behind schedule, Porsche now has to develop additional combustion engine models while also dealing with costs arising from EV delays, weak business in China and uncertainty over exports to the U.S.,” Hölscher told Automotive News.
In February, Porsche cut 1,900 jobs in research and production in Germany, citing “delays in the rollout of electric vehicles.” German newspaper Automobilwoche reported that its 2025 revenue target had been revised down by around $2.2 billion (2 billion euros), and that an additional 8,000 jobs could be affected.
Hölscher believes things could have been different if Porsche had pursued a more flexible manufacturing approach — such as pushing plug-in hybrids and sharing platforms like BMW is doing — to better adapt to changing demand.
In addition to the decline in demand for electric vehicles, Porsche is also struggling with competitive pressure in China. Its first-quarter sales in the market fell 42% compared to the same period last year. According to Porsche’s CEO, the company is even considering withdrawing from the market. Meanwhile, high-performance electric models such as the Xiaomi SU7 Ultra and Yangwang U9 are dominating the market with advanced technology and competitive prices. “China is Porsche’s biggest problem,” Pedro Pacheco, vice president of research at Gartner, told Automotive News Europe.
Can Porsche turn things around in time? The company is reshuffling its leadership, bringing in Michael Steiner, the former head of development at the VW Group, as vice chairman of the board. At the end of February, the company also changed its chief financial officer and sales chief.
Porsche still has a strong brand equity and a strong racing heritage. If it can overcome this challenging period and successfully launch its next generation of EVs, it could regain its form. However, its aggressive electrification plans, coupled with a tough Chinese market and a difficult economic situation, will continue to be a headache for management in the near future.
Source: https://khoahocdoisong.vn/porsche-dang-doi-mat-khung-hoang-vi-tham-vong-oto-dien-post1541879.html
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