Porsche Will Decide Fate of Diesel by End of Decade
Porsche will decide at the end of the decade whether its current generation of diesel engines will be its last
Porsche will decide at the end of the decade whether its current generation of diesel engines will be its last. The Volkswagen emissions scandal trickled down to nearly all its brands, and Porsche, which when combined with Audi accounts for 60% of Volkswagen Group’s sales, is taking a hard look at the longevity of diesel engines in its lineup of vehicles.
Since the Cayenne Diesel was introduced in 2009, the performance brand has relied on diesel-powered products to account for 15 percent of its global sales. They also help bring down the company’s average carbon dioxide emissions. But can both objectives be achieved using electric vehicles? Porsche CEO Oliver Blume said EV’s could make up a quarter of Porsche sales within the next ten years.
Diesel offerings aside, Porsche intends to follow suit with other auto manufacturers as they start making moves toward an electrified future. The company just invested $1.2 billion to revamp its Stuttgart plant in preparation to produce its first, fully electric vehicle, the Mission-E sedan, which is scheduled to arrive in 2019. The company may also introduce an electrified Macan SUV.
In the coming years, VW’s moneymaker brands Porsche and Audi will be sharing a new production platform that will help both brands save money and ensure Porsche’s goal of keeping its return on sales at about 15 percent year over year.
After Volvo’s announcement a few weeks ago, which stated every vehicle launched after 2019 will either be a hybrid or fully electric, the stage is set for Porsche’s diesel offerings to slowly phase out. The questions remain: When will the EV wave be at its peak, and will the wave break in time for Porsche’s reliance on diesels from a sales and emissions perspective be replaced by a reliance on electric vehicles?