Porsche has scrapped plans to build its own electric vehicle (EV) batteries after collapsing demand from drivers.
Porsche axes plans to build electric car batteries as demand collapses
The German carmaker announced that it will wind down operations at its production subsidiary Cellforce and refocus the division on research and development instead.
Oliver Blume, chief executive of Porsche and parent company Volkswagen Group, said: “Porsche will stop pursuing the production of its own battery cells due to reasons of volume and a lack of scale.”
Porsche confirmed the overhaul would lead to job losses, but it said that some workers would be transferred to PowerCo, a separate battery start-up owned by Volkswagen.
The IG Metall union previously said that around 200 of Cellforce’s almost 300 workforce would be laid off.
China dominates the market
Batteries, which are usually the most expensive component of an electric car, have become a key battleground for rival automakers racing to compete in the growing market.
But Western manufacturers have struggled to gain ground against China. Northvolt, the Swedish EV battery-maker, filed for bankruptcy earlier this year, marking a major setback for hopes of a European battery champion. Porsche’s about-turn underscores the darkening outlook for European EV makers.
EVs and hybrids accounted for more than a third of Porsche’s sales in the first half of the year, with rising demand for models such as the Macan SUV.
But demand is still lagging behind expectations, with the US market under pressure from Donald Trump’s move to roll back EV targets.
Porsche had previously scrapped plans to expand production at Cellforce, citing a “lack of volume worldwide”, while Mercedes-Benz, Ford and Honda are among other companies to have scaled back their EV plans.
Meanwhile, cheaper Chinese brands such as BYD are becoming increasingly visible on British roads, with China now accounting for around 10pc of new cars sold in the UK.
This has led to fears that Western brands have all but conceded the affordable EV market to Beijing, with the likes of Jaguar and Range Rover instead focusing on luxury models.
source www.telegraph.co.uk
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The Dave
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ALL EVs, Unsafe at any Speed!🔥🔥🔥
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Dave
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ALL EVs, Unsafe at any Speed!🔥🔥🔥
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Paul
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ALL EVs, Unsafe at any Speed!🔥🔥🔥
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VOWG
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There is no such thing as a “green” EV unless it is painted that colour.
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