Porsche reportedly confirmed that it’s going back to internal combustion power with its Panamera sedan and top-selling Cayenne and Macan crossover SUVs, according to AutomotiveNews. In this latest report, the Zuffenhausen-based automaker spoke to the press about its current sit-rep, where executives admitted its shift back to ICE power and research into plug-in hybrid tech will be costly.
Not only does the company anticipate taking a major hit to its bottom line, to the tune of an estimated $831 million. Porsche is expecting its move back to ICE power and gas-electric hybrid investments could affect its profit margins by up to 10 to 12 percent this year. But the company says it’s a necessary move to cut its losses from failing to get a return on its investments in electric vehicles.
Porsche Is One Of The Many Automakers Backpedaling On Its EV Initiatives
At the beginning of the massive push towards electrification, many automakers seemed to put all of their financial eggs in the EV basket with the expectation that they’d be flying off the lots by now. But the market spoke, resulting in a lukewarm market that remains low from lack of interest, concerns regarding EV ownership such as range anxiety and unreliable charging infrastructure.
With automakers, like Porsche, pivoting back to ICE power and looking further into gas-electric hybrid systems, amid changes at the regulatory level, they all appear to be reeling from EVs simply not returning on their investments.
For example, Porsche attempted to convert its top-selling Macan SUV into an all-electric model only. But backlash from customers, as well as lingering fears and concerns about range anxiety, inability to charge, and even experiential drawbacks (like the lack of an entertaining engine/exhaust note) had many buyers turned off by the prospect.
Several years after Porsche invested in the Macan’s move to electric power, the market clearly said that EVs aren’t as popular and in-demand as anticipated. Recent changes at the regulatory level, such as the current Trump Administration moving to abolish any electric vehicle and recent fuel economy and emissions compliance mandates, also has companies like Porsche going back to ICE-power.
And now, against what seemed to be all odds a few years ago, Porsche’s planning to move the Macan back to ICE-power. But electrification isn’t fully out of the picture as Porsche also seeks to further invest in gas-electric plug-in hybrid tech.
The Cayenne, Panamera, And Its Future Full-Size Crossover Will Also Shift Back To ICE Power
The company is also making the same move with its Cayenne and Panamera sedan, both of which were originally slated to move to all-electric propulsion. Both models will be going back to ICE propulsion. However, all three are also expected to eventually gain plug-in hybrid propulsion too since automakers are still keeping electrification plans as the ultimatum.
Porsche is also supposedly working on another new large three-row crossover SUV model. Codenamed “K1,” it will slot above the Cayenne in the brands lineup. It was originally meant to be an EV, however, with Porsche’s shift back to ICE, it too will be getting internal combustion power.
Recently, automakers, like Porsche, and its parent company, Volkswagen AG, are taking a harder look at hybrid propulsion systems as “stepping stones” for customers towards electric vehicles. But furthermore, hybrids are also perceived as a major interim step between ICE power and full electrification. Not only do hybrids provide the best of both worlds, it also buys time for the battery and charging industry to further develop their technologies and hopefully provide a better future for overall EV driving ranges and charging times.
Source: AutomotiveNews
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