Porsche Axes Plans to Build Electric Car Batteries as Demand Collapses
Porsche has scrapped plans to build its own electric vehicle batteries after collapsing demand from drivers. The Telegraph has more.
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: āPorsche will stop pursuing theĀ production of its own battery cellsĀ due to reasons of volume and a lack of scale.ā
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 Cellforceās almost 300 workforce would be laid off.
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.
Worth reading in full.
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That’s just wiped a few grand off those daft enough to have bought one. Actually it’s given the whole EV market a right boot in the knackers.
Marvellous ššš
There’s a guy at work has one. Nice chap, but not the sharpest. Very persistent, though. Maybe he’ll be able to sell it to another sucker.
Depending on how heās purchased it, he could be smarter than youād think – the tax breaks are unbelievable
Perhaps he didnāt, but rents if from an organisation that invested in it to make a profit from his rental.
“in the growing market.”
pull the other one
Any market involving evs only ‘grows’ because of subsidies, stop those and the market would fall flat on its arse!
It’s isn’t a market, it’s a GRIFT! Crony Capitalism.
If the BEV market is growing, what would it look like if it were shrinking?
It would look like the British economy which is a car crash
I picked up on that piece of nonsense too and was just scrolling through before posting my own comment.
“…a key battleground for rival automakers racing to compete in the growing market.”
Emphasis mine
Growing? That’s funny. Any growth that there is would vaporise without taxpayers’ money which is funding both manufacture and purchase.
Musk knows all about this, being the EV Credit Expert as he is.
EDIT, shooting from the hip as I do, I did not realise that Dinger64 had already made this point. Cheers, Dinger!
Porsche’s current motto is “Driven by Dreams”.
I predict a new motto, and would like to suggest,
“Driven by you, powered by oil.”
Driven by Dreamers
ššš
Wet?
SIgn that EVs are losing steam or sign that China is too far ahead of the game for European car makers to catch up and compete?
It is almost certainly the latter because the EU (and UK) have not stepped back one inch from their EV goals.
What kills me is that our elites have proceeded to destroy the world leading western car industry and deliberately handed all the business to Chinese companies. It’s reckless, mindless vandalism on a scale that is hard to fathom.
As has been said many times, some of the world’s greatest atrocities have been committed in the name of some ideological cause or other.
Donāt you mean the former reason? There is insufficient sales volume. It doesnāt matter what China does or the nitwits in Government mandate, consumers donāt want the product in sufficient volume to,make it viable.
āBut Western manufacturers have struggled to gain ground against China.ā Itās about volume, not China which is just an excuse. The capital costs, overheads, direct costs have to be amortised over production volume which requires enough to cover these and in time yield a return on investment. If expenses exceed receipts, money goes out faster than comes in, then there is a liquidity problem. If the activity is part of a bigger company the parent can subsidise and ensure adequate cash-flow, but only for so long as that comes out of profits. If it is seen the volume and thus revenue is unlikely to grow, then pull the plug. The question is why none of the numpties in management didnāt do their marketing to ascertain there actually was going to be a market before investing. Either they failed to do so, negligence, or did so and proceeded knowing the market was not there, breach of fiduciary duty to shareholders. Either case, why do they still have jobs and why arenāt shareholders suing? Reliance on taxpayer funded subsidies might explain it, but they must have realised they could not last forever, and changes on the political landscape makes reliance on Government high… Read more Ā»
Years ago I thought about installing solar panels because the returns looked amazing – too good to be true which of course they were. I didn’t invest because I thought that any financially astute government couldn’t possibly sustain that level of subsidy. But I didn’t anticipate the appointment of Mad Milibrain
So on another site I am sure we all frequent, as well as being here, we read Meanwhile, energy regulator Ofgem blamed wind farms for the energy price cap rise this morning, citing the increase in balancing costs ā where the National Grid must pay to switch power plants on or off to keep the lights on ā as a driving factor. Red Edās promise to bring down bills is just more hot airā¦
But, a minister this morning laid the blame on high gas prices (only high in this country, not the rest of the world), so the question is, are Ofgem wrong or did the minister in charge of Ofgem deliberately lie to television reporters.
And just as I’m typing, you go and run the report on this site.
Made me wonder if Tata Group are still proceeding with their planned factory near Bridgewater, Somerset to make such things. A quick browse seems that there are no stories beyond around January this year.
When the morons finally hand over to some adults, the wreckage of the European car industry will be over a decade or more behind the chinese in petrol and diesel engine technology as they try to rebuild.
Their cars catch alight. Just as well they are ditching quick milk floats. Most of us do not want and will never buy one.
Oh dear……another nail in the EV coffin……we are fast running out of space for nails……such a shame.
The entire BEV market is inseparably tied to the COā greenhouse warming hypothesis. If that narrative collapses, electric cars will collapse with it. Car manufacturers know this ā they understand that the mantra of deception and blind trust in authority could unravel suddenly, leaving them exposed as having invested in nothing but a lie. They arenāt stupid; they know the climate-change story is false. Thatās why many are quietly preserving the capacity to restart ICE production quickly if needed.