Porsche to shut 3 subsidiaries amid falling sales, profit pressures
What's the story
Porsche has announced the closure of three of its subsidiaries: Cellforce Group, Porsche eBike Performance, and Cetitec. The decision comes as part of a larger strategy to address the company's declining sales and profits. The closures will affect over 500 employees working at these subsidiaries. "We must refocus on our core business," said CEO Michael Leiters in a statement about this strategic shift.
Subsidiary shift
Cellforce Group's shift and Porsche's sales challenges
Cellforce Group had already transitioned from producing electric vehicle (EV) batteries to research and development after Porsche decided against manufacturing its own batteries. The move comes as part of a broader strategy amid a steep decline in Porsche's sales this year. The company reported an 11% drop in North America, 21% in China, and 18% in Europe.
EV commitment
Porsche's continued commitment to electric vehicles
Despite the closures and sales decline, Porsche remains committed to its EV strategy. The company plans to launch an all-electric version of the Cayenne later this year as part of its push for more EVs. This comes after a strong start with the Taycan in 2019, although subsequent EV models have faced development delays due to software issues within Volkswagen's Cariad division.