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Porsche to Reduce Taycan Production Amid Weak Sales

Catherine by Catherine
09/07/2024
in Porsche, car news
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Stuttgart, Germany – Porsche is planning to scale back production of its all-electric Taycan model at its Stuttgart-Zuffenhausen plant, reducing operations to a single shift, according to a report by the Stuttgarter Zeitung. The move comes in response to weaker-than-expected sales, though the company asserts that permanent jobs will not be affected.

While Porsche declined to comment on the report when asked by electrive, the automaker has not denied the claims. Discussions with the works council are ongoing, with no new updates provided.

The Taycan, Porsche’s first electric vehicle, underwent significant updates this spring, following its 2019 debut. These enhancements included a boost in charging power from 270 to 320 kW and an increase in battery capacity, extending the vehicle’s range by 35 percent to 678 kilometers.

Despite the initial success, with Porsche selling 40,600 Taycans in 2023 (a 16.7 percent increase), the global electric vehicle market has experienced a downturn, impacting demand for the Taycan. This trend is particularly evident in China, where Porsche’s internal combustion engine models remain more popular, and the Taycan has struggled to gain traction. Audi’s recent decision to withdraw the e-tron GT, which shares Taycan technology, from the Chinese market underscores this challenge.

In Europe, the Taycan will soon be joined by an electric version of the Macan, which will replace the current combustion engine generation in the region by mid-2026. This shift is driven by new cyber security regulations in Europe, necessitating significant investment in existing platforms.

Porsche Board Member for Production, Albrecht Reimold, highlighted recent difficulties in Taycan production, including the bankruptcy of a key hardware supplier. However, production has now stabilized, with significant improvements made to the drivetrain components, enhancing charging performance and range.

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Looking ahead, Porsche remains committed to a diversified strategy involving battery electric cars, plug-in hybrids, and combustion engines. Preparations are underway for the production of the electric 718 successor and the large electric SUV K1. However, the decision on constructing Porsche’s own battery cell factory remains pending.

“We are currently working with our subsidiary Cellforce on designing a high-performance cell. This involves significant investment and careful planning to align with Porsche’s standards,” Reimold stated. “We are taking the necessary time to make this decision.”

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Catherine

Catherine

I am Catherine Haggui, a distinguished Luxury Goods Specialist with over a decade of experience. As Director of Luxury Retail Strategies at a leading firm, I've cultivated a reputation for curating exclusive collections, elevating brand positioning, and exceeding sales targets. Renowned for my discerning taste and global market insights, I blend artistry and commerce to redefine luxury experiences. My work involves strategic partnerships, trend forecasting, and ensuring clients receive unparalleled access to the epitome of opulence.

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