Electric 718 Delayed

Pushing Back the 718

Porsche is once again hitting the brakes on the release of its all-electric 718 Boxster and Cayman. Initially slated for 2026, these electric offerings have now been postponed until at least 2027. The main culprit? A supply chain snag rooted in the bankruptcy of Swedish battery supplier Northvolt, which Porsche depended on for its high-performance battery cells. While Porsche’s Taycan EV draws power from LG Chem’s cells in South Korea, this hiccup primarily affects the 718 series.

Challenges and Strategy

The goal is to electrify 80% of Porsche’s global vehicle lineup by 2030, a target that’s running into some speed bumps. As pointed out by analyst Fabio Hölscher, the delay in battery-electric vehicle (BEV) adoption is stirring the pot. Porsche is juggling the development of additional combustion models under tight timelines. The company is also contending with weak performance in China and the unpredictability surrounding U.S. export policies.

Impact of EV Demand

The lower-than-anticipated demand for EVs has also played a role in this delay. Earlier this year, Porsche had to trim its workforce by around 1,900 positions in its core German operations due to slow progress in ramping up electromobility. The formation of the Cellforce Group back in June 2021 aimed to spearhead Porsche’s battery cell development. However, intense competition from Chinese manufacturers has tempered enthusiasm for launching large-scale production.

More regulations came into play in mid-2024, prompting Porsche to withdraw the gas-powered Boxster and Cayman from Europe due to new cybersecurity rules. Adapting these models to comply with the rules would have meant a significant overhaul in the twilight of their current lifecycle. Yet, high-performance versions like the Cayman GT4 RS are still riding the waves in other markets till 2025.

CEO Under Pressure

In the midst of all these challenges, Porsche’s CEO, Oliver Blume, who also holds the reins at the parent company Volkswagen, is facing scrutiny. Like Tesla’s Elon Musk, Blume has been managing responsibilities across different ventures, which shareholders believe could impact focus and strategy. Recently, this dual role was put under the spotlight, with discussions on whether Blume should step back and concentrate on either Porsche or Volkswagen. Blume has stated that the future of his dual leadership role lies in the hands of non-executive board directors.

Final Thoughts

These delays underscore Porsche’s lengthy journey to bring the electric 718s to life. Without a manufacturing foothold in the U.S., the company grapples with auto import duties and remains firm on not establishing operations stateside, despite dwindling sales figures. The financial pinch is already being felt. While they haven’t yet adjusted sticker prices, Porsche’s finance chief Jochen Breckner indicated changes might come if tariffs persist. For entry-level enthusiasts eyeing the 718 Boxster and Cayman, getting their hands on one might require more patience and deeper pockets.