Production Cuts for the Taycan Continue
According to the “Stuttgarter Zeitung,” Porsche’s previously announced reduction of shifts for the Taycan production, initially planned only until the end of this year, will extend into 2025. Moreover, production within the remaining single shift will also be scaled back, though the duration of these changes remains uncertain.
A company spokesperson confirmed to the newspaper a “temporary adjustment in the production process.”
Declining Taycan Sales
The Taycan, which debuted as a successful electric sports car five years ago, has faced a sharp decline in sales. In the first three quarters of this year, sales figures plummeted by 50%. This downturn is attributed to a general slowdown in the electric vehicle (EV) market and reduced demand for luxury EV models in China.
China’s Market Challenges
The Chinese market, critical for global automotive manufacturers, has proven difficult for Porsche’s electric vehicles. “Automobilwoche” paints a grim picture, noting that Porsche struggles to establish a significant EV presence in China. By the end of this year, only 60,000 units are expected to be sold, compared to nearly 96,000 in 2021.
Reports indicate mounting pressure at Porsche’s Stuttgart headquarters, where a sense of urgency has set in. Special board meetings are reportedly being held frequently to address the crisis.
Shift in Strategy
Porsche’s Deputy CEO, Lutz Meschke, previously announced that the company would rely on internal combustion engine models longer than initially planned. The original target was for 80% of all vehicles produced by 2030 to be electric. However, this goal now seems less certain.
For up to 1,000 temporary workers, this strategic adjustment comes too late, as their contracts have not been renewed. It is reportedly the first time in a long while that the Stuttgart-based company has been forced to let employees go.
Long-Term Job Risks
“Automobilwoche” warns that up to 20% of Porsche’s workforce could be at risk in the medium term. With the company currently employing 42,000 people, this projection places more than 8,000 jobs in jeopardy