Porsche is pumping the brakes on its EV strategy—halting plans to produce high-performance batteries as the brand searches for a new CEO to lead the company.
The details: Once touted as the future of Porsche performance, the company is shifting its tune on electric vehicles, joining a growing list of automakers scaling back electrification efforts amid slowing EV demand.
Porsche’s EV reset includes cutting 200 of roughly 300 jobs at its Cellforce unit, originally tasked with developing high-performance batteries.
The battery unit will instead be restructured into an independent research and development center.
Some of the displaced workers may be absorbed into Volkswagen’s battery subsidiary, PowerCo, while others could transition to V4Smart, VW’s newly acquired automotive battery arm from Varta, according to Reuters.
What they’re saying: "Porsche is not pursuing its own battery cell production for reasons of volume and lack of economies of scale," said Oliver Blume, CEO of both Porsche and majority owner VW (via Reuters).
Why it matters: Porsche’s pivot reflects an adjustment to market realities—aligning EV supply with actual demand, while keeping its electrification strategy focused on profitability and product strength.
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
No-BS insights, built for car dealers. Free, fast, and trusted by 55,000+ car dealers.
Between the lines: Reports suggest Blume’s dual role as CEO of VW and Porsche could soon end, with the company seeking a leader dedicated solely to the performance brand.
Porsche is in the midst of a restructuring phase, hit by challenges in the EV segment and slowing demand in China, historically one of its most profitable markets.
Global sales slipped 6% in the first half of 2025, totaling 146,391 vehicles sold—though North America, Porsche’s largest market, grew 10%.
Names floated for the top job include Michael Steiner, Porsche’s head of R&D; Stefan Weckbach, VW’s group strategy chief; Bentley CEO Frank-Steffen Walliser; and Skoda CEO Klaus Zellmer.
What they’re saying: "Such a move would alleviate corporate governance concerns," noted Metzler Equities analyst Pal Skirta, citing the challenges of running both VW and Porsche.
Bottom line: Porsche’s EV pullback underscores the strain of split leadership—putting added urgency on finding a dedicated CEO to steer its restructuring and chart a clearer path forward in the EV era.
A quick word from our partner
Winning in today’s market means more than just adjusting prices or boosting ad spend.
It’s about seeing what’s holding each vehicle back — and taking smarter action from day one.
Long before AI became a buzzword, Lotlinx built the industry's first VIN performance platform — powered by AI and the most robust dataset of VIN and shopper behavior — to help dealers optimize every vehicle and maximize profit.
With Lotlinx, dealers can:
Spot inventory risk before it hits
Move cars with precision
Turn each VIN Into a star
