VW Group Cutting Production Models by 50% - Which Porsche EVs?

[Paris92]

With the recent news that the parent group will be cutting production models in half, which (if any) current or future Porsche EV's do you think might be dropped?

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[Flying4Fun]

The Article for those that would like to read it:
Jetta, Porsche Taycan Among Endangered Models Amid VW Group Cuts

 

[Flying4Fun]

Not a single car in that list I would miss.
The 718 (Boxster) maybe not a good idea, but there are other reports that Porsche wants to move upmarket be more special. Seems like dropping these models (with maybe the exception of the Taycan), to me, feels like it aligns with the 'being more special' direction.

The Taycan, doesn't surprise me, despite being a great looking car. It's just not practical enough nor special enough like a 911. I also don't think the 2-speed transmission was a good call (it was for efficiency but not for 'feel' of the drive).

Jetta and Toas? those are so long in the tooth, and the other models like the coupe versions of the SUV, they don't strike me as attractive and I suspect the market didn't treat them well either as a result.

When your business is down 97 or 98 percent, you have to be prepared to do things that might not look good to the outside, but if you want to service, you need to do them:

Porsche’s $5 Billion Profit Collapse: Inside the Strategic Crisis That Just Rocked One of the Auto Industry’s Most Powerful Brands

With that all said, if the market doesnt want these cars in enough volume for there to be profit, then they do need to stop making them. There are plenty of cars I wonder how and why they are still made so my opinion doesn't matter on my feels on these noted models.

At the end of the day, a company has to make money. It seems that the competition is heating up in the car manufacture business, and this will threaten the companies that can't adapt process, style, cost structure, design, and technology to align with what the buyers want. But there is always room for expensive niche players - VW group impacts their credibility with (true or not, it's a perception) of lower end cars that are expensive, sharing parts with expensive models). I think the rumors of Porsche being a more special brand is true, and these are the early days of that transformation.

 

[Paris92]

I have to think it’s going to hit the Macan EV also. With five model variants I see too many options not to eliminate one or two of the existing: Base, 4, 4S, GTS, Turbo

 

[Flying4Fun]

I have to think it’s going to hit the Macan EV also. With five model variants I see too many options not to eliminate one or two of the existing: Base, 4, 4S, GTS, Turbo

On the surface, it makes sense to thin out the model variants, and bundle options so there is less SKU management. I think it would be wise to drop the 'base' and 4, make the 4S the entry.

I don't know if that actually make sense, as I didn't look at the sales numbers, just a gut feel that for overall Porsche to get healthy, they probably need to simplify and drop the lower cost models to increase operating profits.

Basically, if you look at the playbook Broadcom used when they acquired VMware from Dell - they openly said (and I paraphrase) we don't want the bottom 80% of our clients - the Top 20% were all they wanted. It offended so many companies, some left, but Broadcom is making a killing for profits now.

Dropping the lower model lines, such as the Base and 4 might be something they do. This is going to upset the resale values even more - which could also be unpleasant.

 

[MMR]

From a cost-saving/SKU perspective, I’d actually look at component sharing rather than just removing the lower models. The 4S is the odd one out, it has a unique rear motor setup, whereas the 4 shares architecture with the RWD and the GTS/Turbo share the performance hardware.

Dropping the 4S would leave Porsche with two clear drivetrain families, reducing complexity (hence cost) while keeping the volume models and halo variants.

If reducing complexity and production costs are the aim that is what I would do.

 

[Reno]

Boys,
calm down,
VW is planting all sorts of stories right now about how terrible things are going, that models are going to be gone, that a lot of people are going to be fired, that VW is only doing this because then it is easier to get by with lower wages and worse working conditions, classic employer tactics, buy VW shares and be on the winning team

 

[sor]

I’m not sure if cutting trims really affects the manufacturing pipeline that much. Some of the trims share the same drivetrain already. There are some unique parts (I think body styling mostly). Maybe it simplifies inventory but choosing from a million options is kind of Porsche’s signature and almost every choice is available on every trim.

My impression from sales numbers was that despite being different classes, the Macan (and maybe Cayenne) largely ate the Taycan’s lunch as sales really fell off when the Macan EV launched.

 

[Wivenhoe]

I find it strange the Cayenne Coupe is on the list - I read it is a high % of sales and they’ve just started delivering Cayenne EV Coupes. As they are not expecting the EV sales to really take off, they now have a shared Cayenne ICE / EV production line in Bratislava. They are offering the German Unions a deal where if they accept job cuts they’ll shut Bratislava and transfer production to one of the German plants.

I suspect the Taycan has cost them a fortune in the lease / PCP deals - cars going back with a worth much lower than the residual value the terms were based on.

Their dilemma is if they massively cut EV’s (to reflect current sales) they get clobbered under the emissions tax.

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