Porsche Slash Sales Forecast, Warns of Further Issues if Tariff Issues Not Resolved
The Gentlemen in suits over in Porsche HQ in Zuffenhausen, which is of course a suburb of Stuttgart in Germany, have slashed their forecast for 2025 amid a slew of bad news currently impacting the European car industry according to a report carried by Reuters.
The Porsche forecast does not address the thorny issue of US Tariffs, which it says will probably not impact them until later in the year, as the information is not reliable enough to make a full assessment of their impact yet.
The company is now expecting sales some 2 billion Euros lower than previously expected, with a maximum sales of 38 billion Euros, which is still a respectable number, of course, but the stock market will undoubtedly see it as a harbinger of doom.
Underlying the decline are probably two key factors that investors will be nervous about. Firstly, sales in the Peoples Republic (China that is) are down 28% as competition heats up, price wars proliferate and the appetite for luxury cars seems to be waning.
On top of this the residual value of the Taycan EV, which has tanked in all markets is possibly taking the gloss out of Porsche ownership, well at least for that would consider and EV.
On top of all of this doom and gloom Porsche also said that they are not interested in pursuing plans to expand high performance battery production at its Cellforce subsidiary citing the lack of demand for luxury EV’s in the China market.
There could be some good news though. Until recently, the Taycan had been slated as a Lemon of the first order, mostly due to excessive depreciation; some pundits now think the worst is over, and it is an ideal time to buy a used model.
