The economic crisis hitting the European automotive market is forcing Porsche to approve a social plan. 1,900 jobs will be cut in Germany through voluntary departures, such as early retirements, by 2030. The automaker, part of the Volkswagen Group, will also invest 800 million euros in the development of thermal and hybrid PHEV (Plug-in Hybrid Electric Vehicle) engines.
Three key data points easily explain the delicate situation Porsche is facing, knowing that Volkswagen also launched a social plan in Germany at the end of 2024, with 35,000 job cuts planned by 2030. For Audi, let’s also recall that 4,500 job cuts were decided. As for the three data points mentioned earlier, they include a 48.71% drop in sales for the 100% electric Porsche Taycan in 2024, a 27.4% drop in electric car sales in Germany last year, and a 5.9% drop in electric car sales across the EU in 2024.
Also, at the end of 2024, 1,500 fixed-term contracts were supposed to be renewed by Porsche, which did not happen, while 500 other fixed-term contracts are expiring at the beginning of 2025.
To increase its revenue in the coming years, Porsche, like many other automakers, has decided to invest again in the development of thermal and PHEV cars, to the tune of 800 million euros.
Finally, let’s recall that at the EU level, Ursula von der Leyen, President of the European Commission, will implement an action plan to support the European automotive industry. This action plan will be unveiled in detail on March 5th. In this regard, discussions and negotiations between Brussels and automakers have begun in recent days.
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Photos: Porsche
