Porsche Shareholders Question Its EV Commitment Amid Market Slowdown
Some shareholders want the marque to boost sales of its combustion models until EV demand picks up again
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- The carmaker wants plug-in vehicles to account for over half of its total sales next year.
- Porsche is readying all-electric versions of the 718 Boxster and Cayman.
- Shares in the German marque have lost more than a third of their value this year.
Some Porsche shareholders have questioned the car manufacturer’s ambitious battery-electric vehicle plans due to a slowdown in demand in several global markets.
At Porsche’s annual shareholder meeting on Friday, some investors asked why the company continues to push forward with a plan for plug-in vehicles to account for more than 50% of the brand’s total sales next year. Moritz Kronenberger from Union Investment said Porsche should aim to bolster margins and free cash flow by selling more combustion-powered models until EV demand picks up again.
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Porsche’s shares have lost more than a third of their value in the last year, and the company is facing mounting pressure in China due to dwindling EV sales.
While speaking during the shareholder meeting, Porsche chief executive Oliver Blume defended the plan to refresh five of the car’s six models this year and said it will pay off down the road. One of Porsche’s most important new models is the all-electric Macan. Blume says it is the “highest-performance model in its segment” and will be followed by electric versions of the beloved 718 Boxster and 718 Cayman.
Ingo Spiech from Deka Investment also questioned the firm’s EV commitment. Bloomberg reports Speich expressed doubt about EV demand and said Porsche should accept lower volumes and not succumb to market pressure to cut prices.
Porsche wants all-electric vehicle models to account for more than 80% of its sales in 2030, according to Bloomberg.
Late last week, it was revealed that the relationship between Porsche and dealerships in China is becoming increasingly strained due to falling sales. The carmaker’s sales dropped 15% in China last year, and some dealers have been forced to cut prices and lose money to try to meet their targets.
