PORSCHE IN CRISIS | EV "expert" Says CHINESE EVs are CLEARY BETTER than Porsche at half the price!

[Awaz]

Good one.
Electric Bogan, so-called “Viking” exposed. His misleading sweeping statements, in most videos, his misinformation, and hyperbole.

 

[JonoNZ]

Why post stuff from the click-bait know-it-all moron?

 

[Awaz]

It's Kris Rifa's video, not Viking's
My reason for posting this was because it was about Porsche and how this Viking spreads misinformation.

 

[JonoNZ]

Ah apologies! I just see that guys face and have an automatic reaction!

 

[Yves]

Both are seeking clicks and echo chambers like this serves their purpose very well. Kris ranting that the Macan is not as premium as the Taycan is really getting long in the tooth … and Viking only looking for negative info on EU cars is just so he hopes he finally will earn some money with the Chinese car stocks he hold … It’s a shame as they both bring sometimes bring worth while news, but the trash talk is getting more and more in the way. So for me Batterylife1 and TeslaBjorn are getting more views from me …

 

[tmrqs]

Yawn.

 

[quaxon]

They are, I was just in China and checked out some of the cars they have. I would 100% have gone with the $60k Huawei SUV over the Macan EV (which I do love btw) if it were available here. The features are unmatched and it is even more luxurious.

 

[Hutchie]

Please don't shoot the messenger. I know buying a Porsche is more an emotional buy than a business buy.

But I have been following the rapidly changing car market with a keen eye for a little while now (EV vs ICE, German vs Chinese vs USA, speed to adaption / tech etc, pricing strategies, workforce issues). So over and above Sam Evans ('The Electric Viking") I have been looking into the financial longevity of Porsche etc. As such, holding off for 6 months before thinking about ordered a Macan EV.

Some cut and past finding from the internet (with sources) are as follows:

Financial Challenges Facing Volkswagen and Porsche

Volkswagen AG and Porsche AG are currently experiencing significant financial difficulties due to various factors, including declining demand, increased competition, and internal challenges.

Volkswagen AG:

• Impairments: Porsche Automobil Holding SE, the primary shareholder of Volkswagen AG, anticipates impairments ranging from €7 billion to €20 billion on its investment in Volkswagen. These impairments are attributed to an uncertain environment, lower-than-expected demand in various markets, and increasing geopolitical tensions.

Reuters

• Operational Challenges: Volkswagen is contending with low demand for electric vehicles, fierce competition from Chinese manufacturers, and a costly domestic manufacturing base. Recent labor unrest and potential plant closures in Germany further complicate the situation.

Le Monde

Porsche AG:

• Financial Performance: In the first nine months of 2024, Porsche AG reported a group operating profit of €4.04 billion, down from €5.50 billion in the same period the previous year. The group operating return on sales decreased to 14.1% from 18.3%.

Porsche Newsroom

• Supply Chain Issues: Porsche has faced production challenges due to a significant supply shortage of special aluminum alloys, resulting from flooding at a key European supplier's facility. This disruption has impacted production across all vehicle series.

Porsche Newsroom

• Market Dynamics: The company is also dealing with a structural shift in demand, particularly in China, and a slower-than-expected global transition towards electric vehicles. These factors have prompted Porsche to review its product lineup, budgets, and cost positions to enhance flexibility and resilience.

Porsche Newsroom

Conclusion:

Both Volkswagen AG and Porsche AG are facing escalating financial challenges, with impairments and declining profits indicating a worsening situation. Supply chain disruptions, market demand shifts, and increased competition are key contributors to their current financial woes.

Recent Financial Challenges for Volkswagen and Porsche

Reuters

Porsche SE to take up to $21 billion impairment on Volkswagen stake

9 days ago

Financial Times

Porsche holding company warns of writedown in Volkswagen stake of up to €20bn

9 days ago

The Wall Street Journal

Porsche SE To Take Up to $20.9 Billion Charge on Volkswagen Stake



Porsche's Survival Outlook

Considering the current challenges faced by Porsche, including labor disputes within Volkswagen Group, declining sales in China, increased competition from Chinese electric vehicle (EV) manufacturers, and the rapidly evolving automotive industry, the company's survival prospects over the next decade can be assessed as follows:

1. Short-Term Outlook (Next 3 Years):

• Survival Probability: High (90-95%)
• Acquisition Risk: Low (5-10%)

Rationale:

• Financial Stability: Despite recent financial challenges, Porsche maintains a strong brand presence and has initiated cost-cutting measures to enhance profitability.

Reuters

• Product Strategy: The company is adjusting its product lineup to better align with market demands, including a renewed focus on combustion-engine vehicles in response to shifting consumer preferences.

The Sun

2. Medium-Term Outlook (Next 5 Years):

• Survival Probability: Moderate to High (80-90%)
• Acquisition Risk: Moderate (10-20%)

Rationale:

• Market Adaptation: Porsche's ability to navigate the competitive Chinese market and effectively manage labor relations within the Volkswagen Group will be crucial. Ongoing efforts to streamline operations and adapt to consumer preferences are positive indicators.

Reuters

• Industry Dynamics: The automotive industry's rapid evolution, particularly in EV technology, presents both opportunities and challenges that Porsche must adeptly manage.

3. Long-Term Outlook (Next 10 Years):

• Survival Probability: Moderate (70-80%)
• Acquisition Risk: Moderate to High (20-30%)

Rationale:

• Sustained Competition: Intensifying competition from Chinese EV manufacturers and potential shifts in global economic conditions could impact Porsche's market position.

Business Insider

• Strategic Flexibility: Porsche's long-term survival will depend on its ability to innovate, adapt to industry trends, and maintain financial health amidst evolving market dynamics.

Considerations for Purchasing a Porsche Vehicle:

• Brand Legacy: Porsche has a longstanding reputation for quality and performance, which is likely to preserve the value and desirability of its vehicles, even if corporate structures change.
• Service and Support: In the event of significant corporate changes, service and parts availability could be affected. However, the strong global presence of Porsche suggests that support would likely continue through existing or successor networks.

Conclusion:

While challenges exist, Porsche's proactive measures and strong brand equity suggest a favorable survival outlook over the next decade. The probability of the company being acquired remains relatively low but increases over a longer horizon. If you are considering purchasing a Porsche to retain for several years, the company's current strategies and market position indicate that it will continue to operate and support its vehicles in the foreseeable future.

Recent Developments Impacting Porsche's Market Position

The Wall Street Journal

Porsche AG Sales Fall Amid Slow EV Market, China Woes

58 days ago



Reuters

Porsche cuts China dealership network as challenges mount

58 days ago

The Sun

Porsche to make EV policy U-turn after sales slow as car giant set to return to gas vehicles

25 days ago


Again, please don't shoot the messenger, as I'm simply sharing what I have found so far.

Always open to logical, fact based, well sourced and researched comments on the above (as I am saddened by the thought of a quality German brand to be diminished by Chinese brands).

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