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Porsche Axes Subsidiaries Amid Sales Slump
9 May
Summary
- Porsche is closing three subsidiaries, impacting over 500 jobs.
- Falling sales in key markets like North America and China cited.
- Company shifts strategy away from in-house EV battery production.
Porsche is implementing significant restructuring by closing three subsidiaries, a move that will lead to over 500 employees losing their jobs. The most high-profile closure is Cellforce Group, the automaker's battery subsidiary, which had previously shifted to a research and development focus. Porsche eBike Performance and networking software subsidiary Cetitec are also being shut down.
These closures are driven by falling sales and profits. In the first quarter of 2026, Porsche experienced an 11% sales decline in North America and a 21% drop in China, alongside an 18% decrease in European sales. The company attributes these challenges to slower electric vehicle adoption.
CEO Michael Leiters emphasized a return to Porsche's core business for strategic realignment, aiming for a leaner, faster, and more desirable company. This refocusing has also led to the divestment of stakes in Bugatti Rimac and Rimac Group. Despite delays in EV models like the Macan Electric, Porsche remains committed to electrification, planning new EV variants while phasing out gas-powered versions of some models.
