Porsche: We Can Make Even More Money Off EVs
What’s more, Porsche’s current CEO is set to lead the entire VW Group come September.
Don't expect Porsches to get any less expensive as the industry moves toward electric. Apparently, the German automaker says it sees more opportunity to raise EV prices than it does with combustion cars, as reported by Bloomberg.
On the company's capital markets day last week, Porsche CFO Lutz Meschke said EV production costs should drop to match equivalent ICE car figures in as little as two years. That won't necessarily reflect in Porsche EV prices, though, because Meschke goes on to say that "buyers are willing to pay more for new tech."
By the end of the decade, Porsche management foresees 80 percent of its cars to be electric. If you still don't believe that EVs are the future of Porsche—or, perhaps, don't want to believe—the Taycan already outsold the 911 last year.
“Our target is to selectively expand higher-margin segments and to leverage electric-vehicle pricing opportunities,” Porsche CEO Oliver Blume told investors.
Porsche has plans to increase its return on sales from 16 percent last year to more than 20 percent. This is coming from a luxury marque that, historically, has already had notably high profit margins. Back in 2017, it made $17,250 on every new car it sold whereas Mercedes-Benz and BMW collected about $5,000 each during the same time period, representing the highest profit margins within the Volkswagen Group.
In terms of cars, Porsche recently confirmed an electric SUV that will be bigger than and slot above the Cayenne. Originally due in 2023, the next-gen Macan EV has been delayed to 2024 because of a delay in software development.
Late last week, the Volkswagen Group saw its CEO, Herbert Diess, step down. Current Porsche boss Blume will replace him starting Sept. 1 in a move that was reportedly filled with behind-the-scenes drama. The implications of Porsche-sourced leadership on future VW Group product remains to be seen but if I were a betting man, I wouldn't put money on the next-generation ID.4 being sold at much of a discount.
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