PORSCHE

Porsche cuts Taycan production by 50% due to sales performance

The crisis is pressing inside Porsche, with the value of its shares falling and fewer and fewer customers interested in buying the Taycan, a model that was among the fastest growing and best-selling, beating the sports 718 Cayman and Boxster, in addition to the Panamera, getting closer to the mythical 911. But times change and both in China, Europe and the USA, customers have lost much of their enthusiasm for the electric saloon, which has also contributed to the removal of incentives for the purchase of electric vehicles by the German government.

This worrying situation has already led the brand's share price on the Frankfurt stock exchange to fall by 35% in the last 12 months, which represents a strong reduction in the value of Porsche, and has put the German manufacturer faced with the need to reduce the price of the Taycan, to relaunch sales, or reduce production volume to adapt to demand — which in itself tends to increase the manufacturing price of each unit and, therefore, lower profit margins. Porsche opted for the latter strategy, according to the German press, which traditionally makes the stock market and customers nervous.

According to the German press, Porsche will reduce production capacity at the Zuffenhausen factory, where the Taycan is produced, by around 50%. It goes from two shifts to just one and lays off employees with fixed-term contracts, however, negotiations with worker representatives continue, which fuels the possibility of making additional cuts. The Taycan, which appeared on the market in 2019, sold 41,296 units in 2021, but demand fell to 34,801 vehicles in 2022 and 40,629 in 2023. The situation worsened this year, with sales of the model falling 54% in the first three months of 2024, despite the brand having introduced a restyling of the sedan that greatly benefited it, especially in terms of the battery, to increase the previous autonomy.

The announced cuts in production, advanced by German publications such as Stuggarter Zeitung, indicate that the brand does not believe it can easily reverse the current reality. And there is also a question of image, as in addition to increasingly being a manufacturer of tall and heavy SUVs, rather than agile and light sports cars, the Taycan has never been able to stand up to the Model S Plaid in terms of power and speed. And here comes a legion of Chinese sports cars that also promise to leave the German Taycan behind.

Mundoquatrorodas