Porsche 718 Boxster and Cayman to retain their combustion engines
What's the story
Porsche has announced a major shift in its electric strategy, confirming that the next-generation 718 Boxster and Cayman will have combustion engine options for their "top" versions. The move comes as part of a broader plan to revamp the Cayenne and Panamera combustion engine and plug-in hybrid models, ensuring they remain relevant "well into the 2030s," according to CEO Oliver Blume.
Strategic shift
Porsche will take a €1.8 billion hit
Porsche will take a €1.8 billion hit by halting the development of the SSP 61 'Sport' version of Volkswagen Group's platform. The move was originally intended to support the K1 large SUV, as well as electric successors for Panamera and Taycan models. Blume said this decision comes in light of a "clear drop in demand for exclusive battery-electric cars."
Model update
K1 model will now be launched with combustion engine
The K1 model, which Porsche describes as a 'D-SUV,' will now be launched with combustion-engine and plug-in hybrid variants. However, the company hasn't given a specific date for this launch. The decision comes after a significant drop in demand for luxury goods in China and the US's decision to impose higher tariffs on imported cars.
Financial forecast
Predicted net profit margin to drop
The combination of these factors is expected to reduce Porsche's predicted net profit margin to around 2% this year. However, the company expects a return to growth in the 'medium-term,' with plans to increase margins above 10% with new products. Despite these challenges, Blume remains confident in their strategy: "This flexibility gives us a strong position with a compelling mix of combustion engines, plug-in hybrids, and battery electric vehicles."