Olivier Blume is the CEO who has piloted Porsche’s jump to the electric car. Now he leaves with a message: “we were wrong”
Porsche is going through difficulties. To display data: Its profit margin has plummeted to 0.2%. Its sales are clearly declining and it has encountered the worst possible scenario in Europe, China and the United States. Now, Oliver Blume, who has been its CEO for a decade and has piloted the transition to electric cars in the company he leaves. And it does so with a painful message. “We were wrong”. This is what Oliver Blume has pointed out outside of Porsche in an interview with the German newspaper FACE: “Our strategy was to offer sports cars with internal combustion, hybrid and electric engines in each of our three segments, but not for all models. We were wrong with the Macan. With the data and market studies available at that time (late last decade), we would make the same decision today” The statement refers to the complete electrification of the Porsche Macan. A car that, like we count on Xatakaruns like a shot and maintains all the quality and touch of the company but has to deal with the backpack that Porsche, at the time, offered that same car with a V6 gasoline engine. Why does an electric car have less autonomy than advertised? Today the Porsche Macan is an exclusively electric car that, in addition, was delayed countless times as a consequence of creating a platform with an expiration date for this model and the Audi Q6 e-tron. A solution that only created more chaos and difficulties to an internal development that was prolonged to the point of being one of the reasons that removed Herbert Diess, then CEO of the Volkswagen Groupfrom the company. A perfect storm. In favor of Blume it must be said that Porsche has encountered a perfect storm. And this is reflected in the statements to the German newspaper: “The Chinese luxury market has plummeted by more than 80% in a very short time. In the United States, we face high tariffs. These two markets each account for more than 50% of Porsche sales” European luxury brands are having serious difficulties in China. It has been difficult for them to understand a market that has turned its back on them and that has changed his tastes. What was once a sign of quality has become an obsolete product. Now, luxury chinese cars navigate rivers, break speed records and they are filled with screens. “It was just an electrified Porsche. That’s all,” a Chinese customer pointed out to Bloomberg to express his disappointment when getting into the Porsche Taycan To this we must add that the tariffs that the United States has raised for the entry of vehicles from Europe have been a very harsh punishment for the Volkswagen Group and especially for Porsche, which distributes its production between Germany, Bratislava and Malaysia. There is no good option when it comes to putting cars in a very important market for Porsche and much more interesting than China or Europe if we take into account the drop in sales in the former and the position in terms of emissions in the latter. Already in July Porsche’s operating profit was estimated to fall by 67%. Not very flexible. In his interview, Blume acknowledges that they were not very flexible. Buoyed by the enormous success of the Porsche Taycan, the company decided it had to electrify its best-seller. With the numbers in hand, it seemed that converting the Macan into a purely electric car was a good idea to reduce emissions and avoid fines. Over time it has been proven that it was a bad decision. The European Union has made fines more flexible, delaying the accountability of manufacturers from 2030 to 2032 when the Volkswagen Group will have greater room for maneuver to cover Porsche’s presumed excess emissions with greater electric sales of Volkswagen, Audi, Skoda or Cupra. Furthermore, they leave the door open to a future of very expensive combustion cars from 2035what gives life to an even more expensive and exclusive Porsche 911. Without understanding the public. But, furthermore, everything indicates that they did not understand their own audience. And the customer of a Porsche Taycan, the company’s most advanced car at its launch With the appeal of being its first electric car (which was also much more advanced than any other car on the market), it is very different from that of a Porsche Macan. Yes, it is very likely that there is a Macan audience that wants an electric car as a second vehicle in a home where there is already a Porsche 911 or a Panamera to travel with. But the Macan is also the gateway to the Porsche world, the most accessible entry for those who have always dreamed of having one of the Stuttgart cars in their garage. And that customer does not dream of an electric car. going backwards. It’s easy to talk in the past when the data said Porsche was on the right track With the electric car he only does a little more than two exercises. And it must be taken into account that the company has experienced years of record after record in the last decade. All in all, they seem to have verified that their range of clients is very wide. The Porsche Cayenne that it aimed to be electric only will include hybrid engines. The Porsche 718 that were also going to go all-electric They will maintain combustion versions. And the Porsche Macan is preparing for new gasoline versions that have to be mounted on another platform (presumably from the Audi Q5) because the current PPE does not allow the use of a combustion engine. Photo | porsche In Xataka | Porsche wanted to convince us that the electric sports car was the future. The problem: almost no one wants it
