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19 July 2017

Porsche May Get Rid of Diesels

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Volkswagen’s diesel scandal had wide-ranging consequences across its brands, and Porsche is no exception. After the Cayenne Diesel was named as an offender in the international kerfuffle, Porsche has been turning its attention to electrified vehicles. As it moves in this direction, Porsche may drop diesel engines from its lineup all together.

Porsche will decide at the end of the decade whether it wants to produce a next-generation diesel engine, according to Porsche CEO Oliver Blume. “Of course we are looking into this issue,” Blume told Reuters. “We have not made a decision on it.”

Since diesels account for 15 percent of Porsche’s global sales, giving up on the technology would be a significant departure for the luxury automaker. But by that time, EVs will play a larger role. Blume said pure electric vehicles could make up roughly a quarter of Porsche sales by 2025, a slightly less optimistic estimate than a media report saying electrics would make up as much as half of Porsche’s output by 2023-2024.

Over the next 10 to 15 years, Porsche will offer combustion engines, plug-in hybrids, and pure EVs while deciding whether it wants to drop diesels. The redesigned Cayenne that arrives this September will still offer a diesel engine.

Looking ahead, Porsche and Audi will share a new production platform that will benefit their respective electric car programs. Both brands make up 60 percent of VW’s profits, and the new architecture will help keep that money in the bank because the companies can share components and thus cut down on development costs. In 2019, Porsche is expected to start selling the Mission E, its first pure EV. The company may also introduce an electrified Macan SUV, and it already has the 918 Spyder and Porsche Panamera 4 E-Hybrid in its lineup.

Porsche isn’t the only automaker to feel skittish about diesels. Daimler dropped plans to seek approval for selling 2017 diesel models in the U.S., although it hadn’t decided if it would quit the American passenger diesel market altogether.

Porsche’s quandary comes as nations around the world want to ban gas and diesel cars. France is seeking to ban sales of gas and diesel vehicles by 2040. Norway, Germany, and India also have expressed interest in similar bans.

Source: Reuters

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