Driving the news: Porsche AG has slashed its 2025 outlook after taking a €1.8 billion ($2.2 billion) hit tied to delays in its electric vehicle rollout.
For context: Porsche now projects an operating return on sales of no more than 2%, down from a previous range of 5% to 7%.
Parent company Volkswagen AG also lowered its forecast to 2%-3% and will record a roughly €3 billion non-cash impairment related to Porsche’s moves.
Porsche has now cut guidance four times this year as EV demand slows.
The result: A flagship SUV once planned as exclusively electric will instead come in combustion-engine and hybrid versions amid weak battery adoption. The company is also trimming costs, shelving an in-house battery program, and restructuring its workforce.
Why it matters: The retrenchment is a stark shift for European automakers who invested heavily in electrification only to hit cooling demand, tariffs, and higher costs.
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