Key Takeaways
- Porsche has reportedly slowed down the production of the Taycan in Germany due to declining demand.
- No job cuts were planned, but temporary employee contracts weren’t renewed,
- Global EV sales have decreased since last year, affecting Porsche and other automakers.
Porsche made quite a fortune with the Taycan during its early years, but it seems like the honeymoon stage is over. The German automaker is reportedly slowing down production in Germany. According to the German newspaper Stuttgarter Nachrichten, Porsche’s Zuffenhausen plant, which builds the electric sedan, is moving to a single-shift production schedule – down from its typical schedule of two shifts daily.
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The report further claims that the production slowdown is due to declining demand for the Porsche EV. The company is also currently negotiating with the German works council, with the promise of zero job cuts. However, this only applies to permanent employees, with temporary employee contracts reportedly not renewed a few weeks ago.
Declining Demand For The Taycan
The Porsche Taycan sold like hotcakes during its first few years. In 2021, it became Porsche’s best-selling model, with the automaker moving over 41,000 units, outselling the 911 and Panamera. This number went down in 2022, but increased again at the end of 2023, albeit it failed to reach its previous hot-selling status.
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Worse, the Taycan’s sales fell by more than half during the first three months of 2024, which can be attributed to the introduction of its refreshed version in February. Hopefully, the arrival of a hotter 1,092-horsepower Taycan Turbo GT will help the dwindling demand for the nameplate. Of note, the Taycan Turbo GT will arrive in American dealerships in the summer of 2024.
Global EV Sales Decline
But Porsche isn’t the only automaker that’s experiencing the heat of the EV sales slump. Demand has been declining since last year, prompting several automakers to rethink their aggressive electrification strategies. Tesla, which currently sells the world’s best-selling vehicle, is also experiencing lower sales, prompting the Texas-based EV maker to cut prices.
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Whether Porsche’s supposed decision to slow down its Taycan production is directly connected to decreasing demand for the model is still unconfirmed at this point. We still have the rest of the year to see if there’s any improvement to the nameplate’s popularity. Plus, a Macan EV is coming, and hopefully, it will help Porsche attract more EV buyers to the brand.
