"Hearst Magazines and Yahoo may earn commission or revenue on some items through these links."
Porsche's decision a few years back to axe the gasoline-powered Macan in favor of the Macan Electric was, well, boat-rocking. The internal-combustion Macan enjoyed the top spot on the carmaker's annual sales charts (as well as a lofty place in the hearts of enthusiasts), making the decision to end its life somewhat confusing. But Porsche CEO Oliver Blume has just shed some new light on the company's shifting plans, as the leader of Stuttgart-based manufacturer said it isn't done producing compact gasoline-powered SUVs just yet.
While fielding questions during an investor call to discuss the first half of 2025, Blume was queried about the potential for an ICE Macan successor. Blume initially discussed Porsche's need to balance its portfolio with more drivetrain options in order to "enhance market positioning and underpin sustainable long-term growth." However, the German-born executive went on to give more concrete details about Porsche's future portfolio.
"We’re developing a compact SUV with both ICE and hybrid versions. And that’s what we said by the end of the decade, a global rollout in all markets," Blume said in the hour-long investor call, also stating that the vehicle "won’t be later than 2028."
"We are speeding up the process with very short development times and making a very, very typical Porsche for this segment and also differentiated from the BEV Macan. So we think, especially for the SUVs now, we’ll have a very flexible product lineup between Macan and Cayenne across all drivetrain options."
Blume didn't say whether this new compact SUV would carry its predecessor's name, or whether the Macan nameplate would be reserved for the electric variant. (Given all the fanfare around killing off the gasoline Macan in favor of the battery-powered version, though, we wouldn't be surprised if Porsche felt the need to distance its new compact offering from the existing model.) The call also confirmed that the Cayenne and Panamera would stick around with internal combustion powerplants as well as hybrid offerings for some time, as reported by German publication Automobilwoche earlier this year.
The tone of the call was not all celebratory, however. Multiple Porsche executives called the current state of the industry as in crisis, citing challenges with material sourcing, tariffs, and overall demand. Porsche's year-over-year profit margin has slumped by 67%, a storm that Blume said will not pass easily. Porsche told investors that it will hit its low point this year, and that brand is already enacting plans to help ease these financial tensions. Tactics include strategic workforce reductions through 2029 and investing in high-demand markets in China.
"This is not a storm that will pass. The world is changing dramatically, and above all, differently than expected just a few years ago,” Blume said to investors.
Making peace with President Donald Trump's administration and his trade war was clearly on the mind of Porsche executives as well. Porsche currently exports its entire model lineup to North America; on the call, the carmaker explained that the addition of these tariffs have been particularly harmful both to its bottom line and to product availability in North American as well. Even so, North American sales figures and sentiment aren't falling too dramatically.
"We have a huge fanbase in the U.S. and it is our biggest single market. We see pricing opportunities to compensate part of the tariffs," Blume said in respond to a tariff-related question from an investor. "While we are expecting a specific automotive deal beside of the tariffs, we continue with our activities offering a huge investment package from Volkswagen Group in our American-acting brands like Volkswagen and Audi but also Scout International and our technology investors into Rivian."
Executives said there was a faint silver lining in the now-clarified tariffs, and expressed hope that there would be opportunities for discussions with the federal administration not linked to the levies. It is likely to be an expensive time for Porsche, as tariffs continue to stifle margins for manufacturers and dealers alike — and Porsche customers can already see the effect in rising prices. Either way, there will likely be no budgets buys on Porsche lots anytime soon... but at least there will be a new crossover for shoppers not willing to give up gas.
You Might Also Like
Comments