Porsche May Ditch Diesel Engines - CEO
car&bike Team
1 min read
Jul 19, 2017, 12:22 AM
Key Highlights
- Porsche's Mission E saloon will be heading to the market in 2019
- Battery-only cars could account for a quarter of Porsche's sales by 2025
- Porsche introduced its first diesel car in 2009 with the Cayenne
Porsche will decide at the end of the decade whether its latest generation of diesel engines will be its last, Chief Executive Oliver Blume told Reuters, the first time a German carmaker has said in public it could discontinue diesel. Volkswagen's cheating on diesel emissions tests has cast a shadow over its Porsche division and the sports car brand, which first introduced diesel in its Cayenne sports utility vehicle (SUV) in 2009, is considering its options.
"Of course we are looking into this issue," CEO Blume said in an interview at the Nuerburgring motorsports complex in western Germany. "We have not made a decision on it." Blume said Porsche would offer a mix of combustion engines, plug-in hybrid vehicles and purely battery-powered cars over the next 10-15 years and would decide at the end of the decade whether diesel had a future at Porsche.
German prosecutors last month started investigating Porsche staff to see whether they were involved in designing illicit engine-control software and regulators are examining whether the Cayenne was fitted with such a device. A redesign of the Cayenne will be launched in September and it will still offer a diesel version, Blume said, just like the Panamera saloon that hit dealerships last November.
"For the generations that will follow there are different scenarios," Blume said. One scenario has Porsche backing out of diesel altogether, sources at the carmaker said.
Stuttgart-based Porsche still relies on diesels, which account for about 15 percent of its global sales, to help it bring down emissions of carbon dioxide (CO2) as they are more fuel-efficient than petrol engines. At luxury rival BMW, diesel cars make up 35 percent of new registrations while Audi's European diesel sales alone account for two-thirds of deliveries.
But diesel's image has been badly tarnished by the emissions scandal and revelations that some engines pump dangerously high levels of poisonous nitrogen oxides into the air, prompting many carmakers to review their strategies. To tap into growing demand for electric cars, Porsche is spending a billion euros ($1.2 billion) to overhaul its main Stuttgart plant and build its first battery-only model - the four-door Mission E saloon which is due on the market in 2019.
Battery-only vehicles could account for a quarter of Porsche's sales by 2025, give or take 5 to 10 percentage points, Blume said, contradicting a media report that said up to half of its output by 2023-24 could be electric. Earlier this month, Geely's Volvo said all its cars launched after 2019 would be electric or hybrids, making it the first major traditional carmaker to set a date for phasing out vehicles power solely by combustion engines.
Porsche and Audi, which together contribute 60 percent of VW's profits, are targeting "significant savings" in development and material costs for their electric-car programmes by sharing a new production platform code-named PPE, Blume said. The new architecture will allow both brands to save money by sharing components and modules, helping Porsche with a goal of keeping its return on sales at about 15 percent a year, he said.
"Further platforms are conceivable, for instance with SUVs." Porsche sales rose 6 percent to a record 238,000 cars in 2016 and Blume said the carmaker had a guideline for increasing its sales about 5 percent per year through 2025. Counting on growing demand for high-end electric cars, Porsche may spawn another zero-emission model off the Mission E platform, for which it plans an initial capacity of about 20,000 cars at its Zuffenhausen factory, Blume said. An electrified version of the top-selling Macan SUV is also possible.
"We expect the metropolises in China and Asia will switch to pure electric mobility very fast," the CEO said. "I believe there will be few pure combustion engines to be seen in the large cities there in five years time. The development in rural areas will, however, proceed much more slowly."
"Of course we are looking into this issue," CEO Blume said in an interview at the Nuerburgring motorsports complex in western Germany. "We have not made a decision on it." Blume said Porsche would offer a mix of combustion engines, plug-in hybrid vehicles and purely battery-powered cars over the next 10-15 years and would decide at the end of the decade whether diesel had a future at Porsche.
German prosecutors last month started investigating Porsche staff to see whether they were involved in designing illicit engine-control software and regulators are examining whether the Cayenne was fitted with such a device. A redesign of the Cayenne will be launched in September and it will still offer a diesel version, Blume said, just like the Panamera saloon that hit dealerships last November.
"For the generations that will follow there are different scenarios," Blume said. One scenario has Porsche backing out of diesel altogether, sources at the carmaker said.
Stuttgart-based Porsche still relies on diesels, which account for about 15 percent of its global sales, to help it bring down emissions of carbon dioxide (CO2) as they are more fuel-efficient than petrol engines. At luxury rival BMW, diesel cars make up 35 percent of new registrations while Audi's European diesel sales alone account for two-thirds of deliveries.
But diesel's image has been badly tarnished by the emissions scandal and revelations that some engines pump dangerously high levels of poisonous nitrogen oxides into the air, prompting many carmakers to review their strategies. To tap into growing demand for electric cars, Porsche is spending a billion euros ($1.2 billion) to overhaul its main Stuttgart plant and build its first battery-only model - the four-door Mission E saloon which is due on the market in 2019.
Battery-only vehicles could account for a quarter of Porsche's sales by 2025, give or take 5 to 10 percentage points, Blume said, contradicting a media report that said up to half of its output by 2023-24 could be electric. Earlier this month, Geely's Volvo said all its cars launched after 2019 would be electric or hybrids, making it the first major traditional carmaker to set a date for phasing out vehicles power solely by combustion engines.
Porsche and Audi, which together contribute 60 percent of VW's profits, are targeting "significant savings" in development and material costs for their electric-car programmes by sharing a new production platform code-named PPE, Blume said. The new architecture will allow both brands to save money by sharing components and modules, helping Porsche with a goal of keeping its return on sales at about 15 percent a year, he said.
"Further platforms are conceivable, for instance with SUVs." Porsche sales rose 6 percent to a record 238,000 cars in 2016 and Blume said the carmaker had a guideline for increasing its sales about 5 percent per year through 2025. Counting on growing demand for high-end electric cars, Porsche may spawn another zero-emission model off the Mission E platform, for which it plans an initial capacity of about 20,000 cars at its Zuffenhausen factory, Blume said. An electrified version of the top-selling Macan SUV is also possible.
"We expect the metropolises in China and Asia will switch to pure electric mobility very fast," the CEO said. "I believe there will be few pure combustion engines to be seen in the large cities there in five years time. The development in rural areas will, however, proceed much more slowly."
© Thomson Reuters 2017
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Related News
1 min read
10 Most Powerful Super SUVs In India
Popular Porsche Models
Latest Cars
Upcoming Cars
Latest News
Jaiveer Mehra | Apr 2, 2026New Suzuki Burgman Street Launched At Rs 1.02 lakhNew Burgman Street looks to draw some styling inspiration from its larger displacement siblings while also getting updates to the engine and features.2 mins read
car&bike Team | Apr 2, 20262026 Suzuki Burgman Street Launch Highlights: Images, Price, SpecificationsSuzuki will launch the 2026 Burgman Street today. Watch this space to know all about it.0 mins read
car&bike Team | Apr 2, 2026Honda CBR650R, CB650R And X-ADV Delisted From India WebsiteHonda has removed the CBR650R, CB650R and X-ADV from its India website, likely after selling out allocated units.2 mins read
Seshan Vijayraghvan | Apr 2, 2026Hyundai Boulder Concept Showcased At New York Auto Show; Is This The Off-Road SUV Coming To India?This is Hyundai's first ladder-on-frame SUV developed for the US market, and the same platform will be used for a mid-size pickup truck, which will be launched in 2030.1 min read
Jafar Rizvi | Apr 2, 2026Mahindra Electric SUVs Sales Cross 50,000 MarkMahindra has crossed the 50,000-unit sales milestone for its electric SUV lineup, including the BE 6, XEV 9e and XEV 9S.2 mins read
car&bike Team | Apr 2, 2026New Suzuki Burgman Street India Launch Today: What To ExpectThe Burgman Street family will grow with the introduction of a new member, which is expected to be a heavily updated version of the existing 125 cc Burgman Street.2 mins read
Janak Sorap | Mar 31, 20262026 Royal Enfield Guerrilla 450 Apex – First Ride Review: The Update That Changes EverythingAfter riding the updated 2026 Royal Enfield Guerrilla 450 for a round trip of over 140 km from Guwahati to Shillong, the new Apex variant feels like the version of the Guerrilla 450 that should have existed from day one.6 mins read
Janak Sorap | Mar 25, 2026Ducati Desmo450 MX Review: In PicturesDucati’s first-ever motocross motorcycle, the Ducati Desmo450 MX, promises extreme performance and race-focused engineering, and we recently experienced it at BigRock Dirt Park to find out what it’s really like to ride.1 min read
Bilal Firfiray | Mar 24, 2026Nissan Gravite Review: Sub-Rs 10 Lakh Seven-Seater That’s PracticalNissan has introduced the Gravite as a practical seven-seater that’s affordable, that’s easy to live with, and value for money. But should you buy it?1 min read
Janak Sorap | Mar 23, 2026Ducati Desmo450 MX Review: No Road, Only DirtDucati’s first-ever motocross motorcycle promises extreme performance, advanced technology and race-focused engineering, and we got a chance to experience it at BigRock Dirt Park to see what it’s really like.7 mins read
Seshan Vijayraghvan | Mar 21, 20262026 Renault Duster Review: The Hero Returns, But Does He Deliver?2026 Renault Duster - new design, new platform, modern tech, and most notably, the segment’s most powerful turbo-petrol engine.8 mins read