According to Porsche’s CEO, Oliver Blume, the luxury car maker will double its budget for research and development in the field of electromobility by 2022. The company used to manage €3 billion, while currently it has €6 billion available for new electric cars and related business models. The funds will be used for hybrid extensions of existing Porsche models and for completely new, fully-electric cars.

The first battery-electric-powered car produced by Porsche, the Concept Study Mission E model, will be launched by the end of 2019. Blume stated that the company has ideas about what else it can do on the basis of Mission E. They plan to build 20,000 Mission E units per year in Porsche’s headquarters in Zuffenhausen in Stuttgart.

We have to date been working on around €3 billion, but now we are close to €6 billion that we are going to put into electromobility. We will enter new market segments, but we will also electrify existing models.

There is currently very high demand for the electric vehicles, expected to become a “Tesla killer”, particularly in the US. Interest is also high in Norway and Germany, with slower progression in the latter.  Expansion in Germany is likely to occur more slowly, due to the lower rate of development of the electromobility market.

Even though Germany is among the leading European countries to adopt e-mobility and electric vehicles, there are existing gaps in the charging and filling infrastructure and network. Porsche “will not have millions of electric vehicles on German roads from one day to the next. This is a process that will develop over the next three to five years. Then things will go relatively quickly.”

Mission E Concept

Porsche’s first electric sports car will tackle sustainable mobility, digitisation and urbanisation. The new vehicle will be built on Porsche’s E-Performance philosophy, guiding the company’s e-mobility vision. It will reflect all-electric driving, by harmoniously integrating 4 individual seats, 4 doors and 2 luggage compartments, in a sophisticated sports vehicle of the future.

The built-in compact electric motor will accelerate from 0-100 km/h in less than 3.5 seconds, or from 0-200 km in less than 12 seconds. Exceeding a top speed over 250 km/h, it could reach a range of more than 500 km. The electric motor of 440 kW could be charged to 80% in under 15 minutes.

Future plans

In the future there will continue to be very purist sports cars from Porsche with combustion engines.

In addition to launching the Mission E, Porsche will continue building conventional powertrains with combustion engines. The car maker will also produce diesel engines, in spite of the Volkswagen Group scandal, that impacted both Porsche and its supplier, Audi. The illegal emissions software forced Porsche to recall the diesel model of its Cayenne SUV in Europe, last summer.

Nonetheless, Porsche will “retain diesel units, because it sees them as efficient and essential to reach CO2 targets, but will be watching developments very closely and take fresh decisions from one vehicle generation to the next”.

Going forward, Porsche will maintain its long-term target of a 15% yield on turnover, with slightly lower current expectations. The company generated €22.3 billion in revenues and an EBIT of €3.9 billion, in 2016. The 2017 financial results will be released in March of the current year. According to Blume the deliveries in 2017, lead to a 4% increase from the previous year.

Snezana Sokolovska

Snezana has extensive international background and business media experience. She is covering e-mobility, autonomous vehicles and smart technology at Electric Think.

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