Porsche considers scrapping 718 EVs

PORSCHE appears to be stuck between a rock and a hard place regarding the future of its popular 718 sportscar duo.

 

Media reports from Europe suggest proposed battery electric versions of the Boxster convertible and Cayman coupe will be ‘shelved’ indefinitely as financial straits and contracting demand force a rethink of the 718 EV program.

 

Further, and with internal combustion production of the 718 now at an end, it seems plausible that Porsche will be without an entry sportscar range for the foreseeable future, further compounding its fiduciary woes.

 

Porsche had intended to produce only fully electric versions of the 718 in the next generation as part of a commitment to transition to an 80 per cent electric-only range by 2030. But as publication Automotive News Europe reports, the famed sporting brand may soon find itself without a ‘Plan B’ - for hybrid powered 718s.

 

“(The decision) would delay the project by several years, putting Porsche at risk of introducing older technology at a time it needs to generate excitement with its products,” said the publication.

 

“While scrapping the line is one option Mr Leiters (Porsche CEO) is considering, he has not made a final decision.

 

“The issues with the 718 line are part of a broader set of problems Mr Leiters inherited following Porsche’s ailing EV push.

 

“The new CEO, in the job only since 1 January after taking over from Oliver Blume, is under pressure to balance the spending constraints with concerns over underused factories due to lower-than-expected demand for Porsche’s EVs.”

 

Although an inelegant solution, the move has prompted the maker to pivot back to combustion-engine and hybrid models after cutting its guidance four times last year, a slump that also hit parent Volkswagen Group – to say nothing of supplier channels.

 

Porsche itself warns that the EV backpedal would slash operating profit by as much as €1.8 billion ($A3.1billion) in 2025, with further dark tariff clouds building over its biggest single market – the United States.

 

After Porsche ceased production of ICE-powered 718s last year it had planned to reintroduce EV versions this year which seems a pipe dream at this juncture.

 

According to Automotive News Europe, in their last full year of production, Porsche Boxster and Cayman sales rose 15.0 per cent to 23,670.

 

“Porsche has pledged to improve financial performance after its shares dropped out of Germany’s benchmark DAX index last year,” it concluded.