Porsche To Stop Production And Offering Of Diesel Cars

Luxury car maker Porsche will phase out production of diesel vehicles.

The company said in a statement recently that it will no longer make diesel powered vehicles but will get completely focused on the development and manufacturing of vehicles running on hybrid and electric technology.

It can be recalled that it was just five months ago that a senior manager at the Porsche unit of Germany was arrested by police in relation to an investigation into the diesel emissions scandal that had rocked the parent company of Porsche – Volkswagen.

In 2017, diesel cars accounted for only about 17 per cent of the total global sale of Porsche. The company has not manufactured a new diesel car since February this year while no car model powered by diesel has been marketed or sold by the company in the United States since November of 2015 according to the statement of a Porsche spokesperson to the media.

A press release issued by Porsche said that there is a steady increase in demand for electric and hybrid vehicles while at the same time, the demand for diesel powered vehicles has slowed down considerably.

“Due to this change in conditions, the company has decided to no longer offer diesel propulsion in future,” the company said.

Porsche “is not demonizing diesel”, said Oliver Blume, chief executive of Porsche AG, in a statement top the media.

“It is, and will remain, an important propulsion technology. We as a sports car manufacturer, however, for whom diesel has always played a secondary role, have come to the conclusion that we would like our future to be diesel-free,” he said.

It should however be noted that Porsche’s portfolio never had been dominated by diesel vehicles. The company has mostly remained with gasoline for its sports vehicles while diesel models have been offered by the company for some of its four door models of cars.

The Taycanm which is the first ever full electric car model unveiled by Porsche was touted in its press release as being a model that would give a close competition to the in the luxury market for electric car of US automaker Tesla. The Taycan will be launched in 2019.

“By 2025, every second new Porsche vehicle could have an electric drive — either hybrid or purely electric,” the company said.

Porsche has been mostly immune to the huge diesel emission scandal of its parent company Volkswagen for rigging diesel cars to cheat environmental regulation tests about two years. The scandal resulted in the forced resignation of Volkswagen CEO and a large number of legal suits against the company in the United States and at other places.

(Adapted from Money.CNN.com)

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Categories: Economy & Finance, Strategy, Sustainability, Uncategorized

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