Volkswagen takes $6 billion hit from Porsche plan to delay EV rollout

Core Viewpoint - Porsche AG has revised its electric vehicle rollout plans due to weaker demand, particularly in China, and increased U.S. tariffs, leading to a reduction in profit outlooks for both Porsche and its parent company Volkswagen [1][2]. Group 1: Financial Impact - Volkswagen expects a financial impact of 5.1 billion euros ($5.99 billion) from the product overhaul at Porsche AG [1]. - Porsche's operating profit is projected to decrease by up to 1.8 billion euros this year [2]. - Porsche AG has adjusted its automotive EBITDA margin forecast to between 10.5% and 12.5%, down from a previous range of 14.5% to 16.5% [4]. Group 2: Product Strategy Changes - The launch of certain all-electric vehicle models has been delayed, with plans to introduce them at a later date [2]. - A new sports utility vehicle above the Cayenne model will initially be available only with combustion-engine and hybrid options, not as an all-electric vehicle [3]. - The production period for currently available combustion and hybrid vehicle models will be extended [3]. Group 3: Broader Market Outlook - Volkswagen has revised its 2025 operating return on sales forecast to a range of 2% to 3%, down from the previous forecast of 4% to 5% [4].