Due to the slow development of the battery-powered car segment, the car manufacturer Porsche wants to focus again on internal combustion engines. In this regard, Porsche officially announced that it plans to launch new cars with internal combustion engines and plug-in hybrids, as well as to expand the range of special versions and exclusive series. As we have already informed you, serious changes are also expected in the organizational structure.
The interesting thing, however, is that it has been decided to invest approximately 800 million euros unplanned in the development of new cars with internal combustion engines, so Porsche's profits will decrease in the near future. Margins are expected to shrink to 10-12%, well below the target of 17-19%. The poor financial results have already provoked the dismissal of Porsche's top managers.
Although 2024 was a year of unfulfilled forecasts, Porsche remains the largest profit generator in the Volkswagen Group. However, the change in strategy affected investor sentiment: after the report, the shares immediately fell by seven percent to 55.5 euros per share. Porsche closed trading last week with its worst result since its IPO in the fall of 2022.
Porsche's initial strategy included the gradual elimination of internal combustion engines and the transition of up to 80% of the model range to electric by 2030. However, due to the cooling of the market for "battery" cars, the plans had to be adjusted: even the Macan crossover with gasoline units will be revived.