Porsche Delays EV Plans as Volkswagen Faces €5.1B Blow

- Porsche prioritizes combustion and hybrid models, postponing new EV launches. - Volkswagen revises financial outlook, anticipating a €5.1 billion operating profit impact in 2025. Porsche announced it will delay its electric vehicle (EV) rollout, choosing to focus on combustion and hybrid models due to weaker market demand. This strategic pivot will have significant financial repercussions for its parent company, Volkswagen, as the German automaker now faces substantial financial pressure and has revised its 2025 profit outlook downward. On September 20, 2025, Cryptopolitan reported that Volkswagen projects a €5.1 billion hit to its operating profit next year, a figure that includes a €3 billion write-down on its Porsche shares. Consequently, Volkswagen lowered its 2025 profit margin guidance to 2%-3% from an earlier estimate of 4%-5%. Porsche has also adjusted its own profit margin expectations, now forecasting an operating return on sales of just 2%, a significant decline from its prior 5%-7% range. Softer-than-anticipated market demand and challenges with Porsche’s flagship SUV, known internally as the K1, prompted the decision to postpone new EV models. Although Porsche initially planned the K1 as a fully electric vehicle, it will now launch with internal combustion and plug-in hybrid powertrain options. While Porsche is delaying certain EV rollouts, it will continue producing its existing combustion-engine models like the Cayenne and Panamera, with future versions set to offer gasoline and hybrid variants. However, production plans for electric models such as the Taycan and the upcoming Macan EV remain unchanged. This shift reveals broader challenges across the automotive industry, as companies confront evolving consumer preferences and regulatory landscapes. For its decision, Porsche cites several reasons, including intensified competition from brands like BYD, trade tensions, and reduced luxury demand in China. Oliver Blume, CEO of both Porsche and the Volkswagen Group, emphasized the need to adapt to new market realities and changing customer demands. Porsche’s move underscores an industry-wide recalibration during the global transition to electric mobility, as other automakers are also reassessing their strategies in the face of fluctuating demand and rising costs.