Porsche Needs To Redesign Its 3-Row SUV From Scratch And Fast

Porsche’s electric efforts are struggling. Part of the blame is on demand, with slower-than-anticipated adoption of the Taycan in Europe and the US and falling sales in China. Part of it is because of battery issues, with a struggle there leading to delays in the 718 Boxster and Cayman electrification program.

Porsche

Porsche is a German sports car manufacturer and part of the broader Volkswagen Group since August 2012. Founded in 1931 by Ferdinand Porsche, the brand is most famous for the 911 line of sports cars, which first launched in September 1963. But it was the Porsche 356 that came first, and subsequently, Porsche has expanded its model lineup to include a variety of sports cars, supercars, SUVs, sedans, and even EVs. Porsche has a rich history in motorsport, with 19 outright Le Mans victories to its name, among various other titles.

Founded: 1948
Founder: Ferdinand Porsche
Headquarters: Stuttgart, Germany
Owned By: Volkswagen
Current CEO: Oliver Blume

Whatever is to blame, the result is the same. Porsche is being forced to deal with the problem. Extending the life cycles of its combustion models and now, a new report says, Porsche is looking to add a gas engine to its all-electric K1 three-row SUV, a move that could require starting over on a different platform for a model planned to launch in 2027.

All-Electric SUV Now Needs To Find Space For Gas Power

Automobilwoche reported on the potential huge changes to the K1. The model was meant to be a three-row electric SUV sitting above the Cayenne in the automaker’s lineup. It was to be built on the VW Group’s Scalable Systems Platform, an electric-only architecture.

Now, the report says, Porsche engineers are scrambling for solutions. The possibilities include delaying a model that was set to launch in two years. Another possibility is that it could start over. Using the Cayenne’s platform and stretching it to make a gas-powered Cayenne seven-seater.

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Porsche has to change the SUV because of its electric sales. The report says that Taycan sales in the last 10 months have fallen 52 percent in Europe. Overall sales in China have dropped 29 percent in the first three quarters of 2024.

The automaker doesn’t seem to see that changing, because of a price war in China. “In China, a premium combustion engine that costs €70,000 to €80,000 is competing with Chinese vehicles in the electric segment that are being pushed onto the market for €30,000 and also have a lot to offer,” said Porsche CFO Lutz Meschk.

Porsche Will Only Have Three Gas Models Next Year

A more expensive large Porsche EV would only exaggerate the price differences. And non-China automakers aren’t able to compete with the government assistance and low-cost labor available to domestic makers. Delays in Porsche’s EVs combined with falling sales have put the automaker in a bind. EVs like the Macan arrived years late.

Porsche Ready To Develop Gas Versions Of EVs

In light of the dwindling demand for EVs, Porsche is rethinking its electric strategy and may introduce ICE-powered versions of its future EVs.

At the same time, older models have trouble meeting a new EU cybersecurity directive that came into place after the vehicles were expected to have been replaced. The report says that by mid-2025, only the 911, Panamera, and Cayenne will be available with gas engines. This has put the company in crisis mode, scrambling to save its lineup. Expect big changes and a very turbulent year for the German sports car company in 2025.