Porsche Is Pivoting Back to Combustion. It Will Cost Them Dearly

The company's 2025 forecast includes "significant additional expenditures" to focus more on combustion and hybrid powertrains.

Photo by: Porsche

By: Christopher Smith

Feb 7, 2025 at 2:00pm ET

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Porsche, like many other automakers right now, is taking a hard look at the future and reevaluating its plans. Specifically, that means dialing back the electric push in favor of more combustion power. But it's not as easy as flipping a switch. And it won't come without a price.

In Porsche's case, the price could be steep. On February 6, the company shared some preliminary financial figures for expectations in the coming year. Production expansion and development related to combustion and hybrid powertrains is forecast to cost $831 million. Mind you, that's just for 2025. That figure also includes costs for "battery activities," so it's not entirely a combustion-only expenditure. That said, new hybrid vehicles do require batteries for specific platforms.

Reversing course back to combustion should see profit margins fall to between 10 and 12 percent, according to Porsche. The company is forecasting a sales revenue of $40-$41 billion.

Photo by: DW Burnett / Motor1

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Last year Porsche announced it would continue V-8 production for the Cayenne and Panamera beyond 2030. Chief Financial Officer Lutz Meschke told Automotive News Europe the company was further looking into creating hybrid or full combustion versions of vehicles originally slated to be electric only. Porsche's 2025 financial forecast reinforces that statement.

The news comes amid struggles at the automaker to get the next-generation 718 dialed in ahead of its planned launch later this year. The new sports car will forego its mid-engine layout to become an EV, though we can't help wondering if plans are already underway for an ICE companion. The new Cayenne EV is also reportedly delayed, casting doubt on its planned debut for 2026. As for Porsche's best-selling vehicle, the new Macan EV could also gain a combustion-powered version sooner rather than later.