Porsche Aims for 80% of its Lineup to be Fully-Electric by 2030, Electric 718 Will Debut in 2025
【Summary】Stuttgart-based sports car manufacturer Porsche is the latest automaker to commit to electrifying its model lineup. The automaker announced on Friday at its annual press conference that its aims for 80% of its vehicles to be fully-electric by 2030. Porsche intends to develop electric versions of its most popular sports cars, including the 718, which is set to debut in 2025.
Stuttgart-based sports car manufacturer Porsche is the latest automaker to commit to electrifying its model lineup. The automaker announced on Friday at its annual press conference that its aims for 80% of its vehicles to be fully-electric by 2030.
Porsche's electrification plans come as the automaker reached a new all-time high in both sales revenue and operating profit in 2021, despite the challenges of the pandemic.
The automaker reported sales of €33.1 billion in 2021, which is a €4.4 billion increase from 2020 representing growth of 15 percent from the €28.7 billion in 2020. In addition, net cash cash flow increased by €1.5 billion from €2.2 billion in 2020 to €3.7 billion in 2021, the automaker announced.
Porsche intends to use its cash to fund its future, which includes the development of electric versions of its most popular sports cars, including the 718 sports car, which is set to debut in 2025.
"Thanks to our highly motivated employees, our profitability program has been a complete success," said Lutz Meschke, Porsche AG Deputy Chairman of the Executive Board and Member of the Executive Board Finance "Porsche has further increased its efficiency and lowered the break-even point. This gives us the leeway to invest in the future viability of our company despite the tense economic situation. We are resolutely driving forward investments in electrification, digitalization and sustainability. I am optimistic that Porsche will emerge from the current global crises stronger."
Porsche has already found early success with its first-ever electric car, the Taycan sedan. Customer deliveries of the Taycan more than doubled to 41,296 units in 2021, overtaking the sales of the iconic Porsche 911, which also set a new sales record of 38,464 units.
"The Taycan is 100 percent a Porsche and inspires all kinds of people – existing and new customers, experts and the trade media," said Oliver Blume, Chairman of the Executive Board of Porsche AG. "We are stepping up our electric offensive with another model: By the middle of the decade, we want to offer our mid-engine 718 sports car exclusively in an all-electric form."
In 2021, Porsche said that roughly 40% of all new vehicles delivered in Europe were already at least partly electric, meaning plug-in hybrids or fully electric models. In addition, Porsche also announced its intention to be carbon-neutral by 2030. But in the interim, Porsche aims for half of its sales to be fully-electric vehicles by 2025 and 80% by 2030.
"In 2025, half of all new Porsche sales are expected to come from the sale of electric vehicles – i.e. all-electric or plug-in hybrid," said Blume. "In 2030, the share of all new vehicles with an all-electric drive should be more than 80%."
To prepare for its electric future, Porsche is already laying the groundwork.
The automaker is investing in EV charging stations together with its partners, but is also planning for its own charging infrastructure. Additional investments are being made in core technologies, such as battery systems and module production.
Porsche's new battery cell joint venture with battery maker CUSTOMCELLS named "Cellforce Group GmbH", is developing high-performance battery cells for the automaker. Series production of the cells will start by 2024 at a new factory in Germany.
The high-performance Li-ion battery cells will use silicon as the anode material, which can potentially boost the power density compared to current lithium ion batteries. The battery can potentially offer the same energy density in a smaller size.
For high-performance Porsche electric vehicles, the new chemistry reduces the battery's internal resistance, which inturn allows the battery cells to absorb more energy during energy recuperation. Li-ion batteries also offer improved performance for fast charging, according to Porsche.
"The battery cell is the combustion chamber of the future," Blume said in 2021. "This joint venture allows us to position ourselves at the forefront of global competition in developing the most powerful battery cell and make it the link between the unmistakable Porsche driving experience and sustainability. This is how we shape the future of the sports car."
Porsche plans to offer a fully-electric 718 in 2025.
With new electric models in the works, Porsche is poised to become a fierce competitor to Tesla and Lucid Motors in the U.S. Porsche sales grew rapidly in the United States last year, with deliveries rising by 22% to more than 70,000 units.
A year ago, Porsche introduced its more affordable rear-wheel-drive Taycan electric sedan in the U.S. with a starting price of $79,900. Before the base version was announced, the Taycan 4S was the most affordable model in Porsche's North American lineup with prices starting at $103,800.
With Porsche's long history as a sports car manufacturer, its the electric version of the Porsche 718 that's generating most of the buzz from the automaker's annual press conference. It's safe to say that an electric 718 could become a big hit with Porsche fans.
Porsche is also hoping to launch an IPO as a standalone unit of parent company Volkswagen AG. In February, Volkwagen's finance chief, Dr. Arno Antlitz, said Porsche's potential IPO could happen as soon as the fourth quarter of 2022.
"Strategically, operationally and financially, Porsche is in an excellent position. We are therefore looking to the future with confidence – and welcome the consideration of an IPO of Porsche AG", said Meschke. "This would allow Porsche to raise its profile and increase its entrepreneurial freedom. At the same time, Volkswagen and Porsche could continue to benefit from joint synergies in the future."
Originally hailing from New Jersey, Eric is a automotive & technology reporter covering the high-tech industry here in Silicon Valley. He has over 15 years of automotive experience and a bachelors degree in computer science. These skills, combined with technical writing and news reporting, allows him to fully understand and identify new and innovative technologies in the auto industry and beyond. He has worked at Uber on self-driving cars and as a technical writer, helping people to understand and work with technology.
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