By Thomas Seythal and Christoph Steitz
BERLIN/FRANKFURT (Reuters) -Porsche AG on Friday dialled back plans for its electric vehicle rollout due to weaker demand, pressure in key market China and higher U.S. tariffs, causing the luxury sportscar maker and its parent Volkswagen to slash their 2025 profit outlooks.
Volkswagen, Europe’s largest carmaker, said it would take a 5.1 billion euro ($5.99 billion) hit from the far-reaching product overhaul at its subsidiary.
The changes are a major shift for the Stuttgart-based maker of the iconic 911 model, and are expected to hit Porsche’s operating profit by up to 1.8 billion euros this year.
Porsche’s Frankfurt-listed shares were down 3.1 at 1731 GMT, while Volkswagen’s shares we 3.4% lower.
“Due to the delayed ramp-up of electromobility, the market launch of certain all-electric vehicle models is planned to take place at a later date,” the company said.
It added that the new sports utility vehicle above the Cayenne model will initially not be offered as an all-electric vehicle, but with combustion-engine and hybrid models.
“In addition, the production period of currently available vehicle models with combustion and hybrid drivetrain will be extended,” Porsche said.
Holding company Porsche SE, Volkswagen’s biggest shareholder, which also owns a 12.1% stake in Porsche AG, cut its outlook for profit after tax as well.
Porsche AG expects its automotive EBITDA margin to come in between 10.5% and 12.5%, versus 14.5% to 16.5% previously.
VW announced it now sees its 2025 operating return on sales in the range of 2% to 3%, with a previous forecast of 4 to 5%.
($1 = 0.8510 euros)
(Reporting Christoph Steitz in Frankfurt and Thomas Seythal in Berlin; additional reporting by Simon Ferdinand Eibach and Paolo Laudani in Gdansk; Editing by Jan Harvey)
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