Porsche's losses exceeded one billion euros due to revised electric vehicle plans
Kyiv • UNN
Porsche AG recorded a quarterly loss of 967 million euros, the largest in its history as a public company, with total losses for the three quarters reaching 3.1 billion euros. The reasons for this include the postponement of the electric vehicle program, the cancellation of its own battery production, a decrease in demand in China, and high US import tariffs.
Porsche AG recorded its first quarterly loss in its history as a public company – operating losses reached 967 million euros, and the total loss for three quarters amounted to 3.1 billion euros (3.6 billion dollars). The reason for the decline was the postponement of the electric vehicle program, the cancellation of its own battery production, a decrease in demand in China, and high US import tariffs. This is stated in the Bloomberg material, writes UNN.
Details
Demand for Porsche electric vehicles has recently decreased, and supply chain problems have exacerbated weak sales in key markets. Because of this, the company's shares fell, and the forecast for 2025 was lowered for the fourth time this year. The third quarter brought revenue of 8.7 billion euros.
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As part of the restructuring, Porsche revised plans for new models: the line of large SUVs, which was supposed to be electric, will now be released with internal combustion engines and hybrid power units. The company also updated most of the members of the board of directors and intensified cost cutting.
CEO Oliver Blume will hand over leadership to Michael Leiters, former head of McLaren Automotive, who has experience in developing Macan and Cayenne SUVs. Leiters will be responsible for launching the replacement for the Macan with an internal combustion engine, production of which will cease next year.
Porsche's SUV market strategy is key for the US – currently the company's largest market. The lack of local production forces it to import cars from Europe, paying 15% tariffs. Porsche is also considering assembling one of the models in the US to reduce costs and strengthen its market presence.
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