Porsche CEO: Profits Will Fall Due To Electric Car Development

1 year ago by Eric Loveday 30

Porsche Mission E

Porsche Mission E

Porsche Mission E concept

Porsche Mission E concept

Porsche has made it publicly known that it expects reduced profits in the near future as it moves towards developing an all-electric car based on the Mission E concept.

Porsche CEO Oliver Blume made a statement that was picked up by Automotive News and reported as follows:

“Porsche now has “many new products in the pipeline” to set the course for future growth, Oliver Blume told reporters on Monday. “Therefore it’s clear that we can no longer carry out major leaps on results,” he said.”

The electric car based on the Mission E will require a massive investment, which Porsche previously disclosed. That initial investment will cut into near-term profits, as it would for any automaker. but in the long term, Porsche’s investment will undoubtedly pay off.

Just recently, the an electric car based on the MIssion E concept was fully confirmed for production when it received it F1 codename.

Source: Automotive News

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30 responses to "Porsche CEO: Profits Will Fall Due To Electric Car Development"

  1. RexxSee says:

    B.S. Big cartel team P.R. driven guide line LIE! Electrics are much simpler than ICEs.

    1. AlphaEdge says:

      Yeah, and all those batteries are so cheap!

      1. jerryd says:

        Those batteries are cheap now and even more so by the time they build this,
        if they do.
        A 100kwhr pack in 2020 will only be $10-12k, a tiny fraction of what they will charge.
        But since Tesla is kicking their butts they have no choice.
        And a P90D will still beat it according to the numbers Porsche put out.
        As likely will a Model 3 P70D at much less price.
        Or even a similar sportscar.
        Next what is hard about designing an EV? It is a hell of a lot easier than designing a gas motor/car and costs a lot less in Porsche’ gas motor/transmission costs.

  2. evcarnut says:

    Porsche should pack it in already! That way, ALL their Existing cars, will “SUPER” desirable collector’s items, While making the roads safer from all the lmao Porsche race enthusiasts …..

  3. Jeff Songster says:

    Translation… Because Tesla has now eclipsed even Mercedes’ best seller in the luxury large car sector… we are ashamedly having to re-engineer all existing future plans to address the shortfalls of them. Pay no attention to the man behind the curtain while we adjust our factories to the new realities. No more scamming emissions controls… best to just abandon ICE and find a new space to fit into the performance market.

    1. Anon says:

      +1

      DiSRuPtiON!

    2. Three Electrics says:

      I think it’s more likely that battery prices have simply fallen to the point where electric vehicles can be produced without losing $20K per car, as Tesla does.

      1. Three Electrics says:

        I should mention that this $20K number *excludes* investments in the Gigafactory, superchargers, and other capital expenditures. Including those, and it would be far more.

        1. jerryd says:

          Only a shill/3electrics, would say Tesla is losing $20k/car when the profit is more like $27k on the S.
          Only a fool wouldn’t understand growing a company 60%/yrs is a better investment than taking profits now.
          It just shows how scared they are of Tesla and rightfully so.
          And with the recent market downturn it is a good time to buy Tesla stock cheap.

      2. PVH says:

        How dear you bring some reality in this sanctuary ? 🙂

        1. evcarnut says:

          We don’t know Dear

      3. Nix says:

        Oh god, not more of the same ignorant math that the trolls used to claim that each Volt cost GM $100K to build. No, you cannot simply divide costs to date by the number of vehicles built to date.

        When a car company counts beans to determine profits on a generation of a specific car, they total up R&D and divide it over the entire projected lifespan of that generation. So if Ford spends $1 Billion dollars on R&D on a new generation of F150’s, they divide that over the entire 8 year projected life of that generation.

        What you have done is actually the opposite. You essentially taken all of the R&D costs to date for both the Model X and Model E, and charged them to the Model S sales!

        Enough of the intellectually dishonest posts. You know better.

        1. JakeY says:

          You saved me from doing a similar post. I took issue with that in a previous article too. I think he knows perfectly well what he is suggesting (counting R&D costs into gross margin) can’t be reasonably applied to Tesla at this stage of rapid growth, but he continues to do it.

  4. kdawg says:

    What’s the German version of “Thanks Obama!”. Or maybe it should be “Thanks Elon!”

  5. pjwood1 says:

    Porsche never would have had to partner, or play games, with VW if it did Mission E earlier. CAFE solved. They could have bettered Tesla’s 25% Gross Margins, too. Now, after dancing with the diesel-devil, Piech, look where they are.

    If Wolfgang weren’t there, it might not have happened. All in the family.

    1. PVH says:

      No, Porsche makes billions of profits out of its partnering with VW. Porsche Cayennes & Macan (the bulk of Porsche sales) are actually using a VW platform and a VW diesel engine. So not that much left which is genuine Porsche.

      1. pjwood1 says:

        Genuine Porsche would be the idea. Independence was what they valued, not “synergies”. Take the good with the bad.

  6. Ash09 says:

    Looks like Elon MUsk’s goal of forcing other automakers to come out with electric vehicles is coming to fruition.

    Remember how they were all saying “nobody wants EV’s” before? At least until the Model S showed up…

  7. ffbj says:

    Another jail-house conversion, on the way to the gas chamber.

    1. PVH says:

      And lets not forget the sack of Rome by the vandals, sure Porsche had a connection with that as well.

    2. MTN Ranger says:

      Please don’t mention gas chambers in an article about Germans. /s

      1. Rich says:

        No kidding. It’s not like VW has been sending out millions of Trojan horses that gas world populations with poison NOx. 😉

  8. GeorgeS says:

    Despite the fairly negative reaction I see here I like the Mission e. I think you guys are nuts to write off the Germans.

    This car will be priced at 2 to 4 times a Tesla. ……so it will buy superior tech.

    an 800V charging system that drops charging time to 15 minutes comes to mind.

    1. JH says:

      Once the ceo has a go with the engineering department it will be 400 volts again. For extremely good reasons. 800 volt is significantly, in all aspects, just not mnore dangerous but also way more expensive to wire, it is also, for very good reasons highly regulated all throughout the world. It would be a MAJOR pain in the neck all through quite simply. At the end of th eline it would simply not be worth the cost.

      1. Nick says:

        Maybe.

        Remember all the quick charge standards have safety for high power up and down the stack.

        Continuous ground continuity check, leakage detection, no load make and break, locking connectors, etc.

  9. Bill Howland says:

    Yeah, I’d like to see a few years from now who actually installs this ‘800 volt charging facility’, how many of them are installed, who actually installs them, and how much they charge the public for the privledge.

    I know one thing: There will be “ZERO” anywhere near Buffalo, NY. Our nearest non-supercharger QC in this country is in Ithaca, NY – at least 200 miles away.

  10. Mike says:

    Isn’t funding R&D and reinvesting what profits are for? Otherwise it’s just useless money sitting in a bank.

    In fact, this article really has nothing to do with electric cars at all, but highlights the fact that automakers are resting on their laurels, trying to minimize development costs so they don’t impact profit numbers too much.

    I’d rather see them say “Hey shareholders, we’ve done so well lately that we’re taking the next big leap and making a $XX Billion investment into our future!”… Not a whiny statement like “Well we’re not going to have the same profits because of this..” Well, DUH!