German car manufacturer cautious – Porsche to delay electric vehicle launch

The German car manufacturer Porsche has decided to slow its transition to electric vehicles and delay the launch of its all-electric SUV.

This prompted Volkswagen to lower its 2025 profit outlook.

As a result, Volkswagen shares lost more than 3% of their value on the US stock market, while Porsche shares fell 2.5%.

Citing weak demand for its electric line, intense competition from Chinese rivals and restrictive US trade tariffs, the iconic sports car maker is reorganizing its electric vehicle strategy and shifting most of its production back to internal combustion engine vehicles.

This includes the Porsche Macan, which will no longer be offered exclusively as an electric vehicle but will include hybrid and ICE options, as well as an ultra-luxury SUV known internally as the K1.

As a result of Porsche’s move, Volkswagen would suffer a loss of USD 6 billion for fiscal year 2025.

Porsche AG lowered its automotive EBITDA margin to 10.5% to 12.5% from an earlier forecast of 14.5% to 16.5%.

In addition, Porsche SE, which owns stakes in both Volkswagen and Porsche AG, also lowered its profit outlook to a range of USD 1.06 billion to USD 3.41 billion from an earlier projection of USD 1.88 billion to USD 4.23 billion due to non-cash impairments.

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