Porsche reverses course: new CEO admits mistake in electric push and bets on gasoline engines

Porsche faces a financial crisis with US$ 4.5 billion in extraordinary expenses; bets on combustion, hybrids, and eFuels for recovery.

Porsche is going through an unprecedented financial crisis, driven by extraordinary expenses of US$ 4.5 billion in 2025, including a US$ 3.5 billion write-down linked to the shift to electric. The profit margin has shrunk and operating profit dropped by 98%, with the margin reaching only 0.3%. The new CEO, Michael Leiters—who arrived from McLaren—points out that the acceleration towards EVs was too fast and needs to be adjusted to get the brand back on track.

The electric bets that didn't take off

Among the decisions that failed, Taycan sales dropped by 49% in 2024, affected by EV demand and competition from Chinese manufacturers. The strategy of completely replacing the combustion-powered Macan with an electric version was considered a mistake, maintaining the need to keep gasoline and hybrid engines. The gasoline-powered Macan is expected to return only as part of a new generation, projected to arrive no earlier than 2028, leaving a gap in the lineup in the short term.

The road back begins with combustion and hybrids

Porsche draws inspiration from its own recovery history, recalling the launch of the Cayenne in the early 2000s. Leiters is betting that it is possible to rebuild the brand around powerful combustion engines, plug-in hybrids, and platforms that allow for combustion evolutions alongside electrification. Furthermore, the company is increasing investment in eFuels—synthetic fuels generated from renewable energy—that can reduce emissions over the useful life of the engines without compromising the driving experience for which the brand is known.

What lies ahead

The 911 remains a solid benchmark, with stable demand, while the rest of the lineup faces challenges. Porsche makes it clear that combustion and plug-in hybrid engines will remain in the portfolio for the next few decades, focusing on improving efficiency and reducing emissions through eFuels. The recovery package is still being redesigned, but the announced direction points towards a more sustainable rebalancing between performance and environmental responsibility.

• Extraordinary expenses 2025: US$ 4.5 billion
• EV impairment: US$ 3.5 billion
• Operating profit fell 98%; margin at 0.3%
• Taycan: sales drops of 49% in 2024
• Electric Macan postponed: gasoline version in development, projected for 2028

Opine in the comments: do you believe Porsche can recover by betting on combustion engines, hybrids, and eFuels, or is the brand's future inevitably in EVs?