Porsche closes three subsidiaries and cuts 500 jobs
Updated
Updated · The Wall Street Journal · May 8
Porsche closes three subsidiaries and cuts 500 jobs
14 articles · Updated · The Wall Street Journal · May 8
The shutdowns affect battery developer Cellforce Group, e-bike drive maker Porsche eBike Performance and software company Cetitec, as chief executive Michael Leiters pushes a turnaround.
Porsche said the move is meant to streamline operations and lift profit as slow electric-vehicle demand, weakness in China and US tariffs raise costs by several hundred million euros this year.
The carmaker has delayed some all-electric launches, is investing more in petrol and hybrid models, and plans a broader strategy update by autumn after first-quarter deliveries fell 15% and operating profit 22%.
After a 93% profit plunge, can Porsche's new strategy survive US tariffs and fierce competition in the Chinese market?
By divesting from EV-pioneer Rimac, is Porsche sacrificing its technological edge for a short-term financial fix?