German automaker Porsche will raise prices in Europe and North America by 4-8% to offset supply chain issues that affected its first-quarter profit. The company says it still has issues acquiring semiconductors and components for the high-voltage heating system in its all-electric Taycan. It's also allegedly looking to move upmarket to fight the likes of Ferrari, according to Automotive News.
Porsche's revenue, operating profits, and deliveries rose compared to the same time last year, but that was when it was saddled with supply chain issues far beyond what it is dealing with now. It has also seen a decline in the profit from its auto lending business. Overall, the automaker says it's not doing well enough, and as such, it will increase prices to boost profitability.
We've seen these pricing increases begin already. Along with closing out Cayman GT4 production, Porsche raised the prices on many other Cayman and Boxster models earlier this year within the margin in the AN report. It also removed some options, possibly in an attempt to streamline production.
Porsches are already expensive if you weren't aware. A base model 911 costs $114,400 before destination. Likewise, the automaker's electric Taycan is $90,900. The company sees the latter cars as vital to its future profitability. It thinks it can lower the cost of these electric vehicles to the level of ICE cars within a few years, at which point it will be able to charge more for the new technology.
As such, it's allegedly developing several electric prototypes, some of which it has shown to dealers. With buyers preferring crossovers, it's no secret that the automaker is working toward an EV larger than the Taycan. How big exactly, we'll have to wait and see.
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