Porsche, owned by the VW Group, is currently reevaluating its decision to produce electric versions of its 718 Boxster and Cayman models due to financial constraints and delays in development. The company’s new CEO, Michael Leiters, who took over from Oliver Blume at the beginning of the year, is reportedly reconsidering the project as costs have escalated following Porsche’s initial foray into electric vehicles.
The Boxster and Cayman, which were powered by petrol and discontinued in 2025, were among Porsche’s more affordable models, with starting prices around €70,000 ($82,754). The potential abandonment of the electric models comes as Porsche faces challenges in China, reduced demand, the financial burden of reversing parts of its EV strategy, and technical obstacles in exploring a plug-in hybrid alternative for the lineup.
Sources indicate that shifting back to traditional combustion engines and hybrids could necessitate different vehicle platforms and potentially delay the reintroduction of the 718 models by several years. This delay could risk debuting outdated technology at a time when Porsche needs to generate interest in its new offerings.
Leiters is currently weighing the financial constraints against concerns about underutilized factories following lower-than-expected EV sales. The uncertainty surrounding the 718 models is part of a broader strategic reset for Porsche, which has revised its outlook multiple times and refocused on combustion engines and hybrids, following a similar downturn at parent company Volkswagen.
The company has warned that its recalibration towards EVs could reduce operating profit by up to €1.8 billion in 2025 and highlighted the impact of US import tariffs on its largest market. Porsche had initially planned to reintroduce the 718 Boxster and Cayman as electric vehicles as early as 2026 after discontinuing combustion engine production in the previous year.
In 2024, the last full year of sales for the petrol-powered 718 models, deliveries increased by 15% to 23,670 vehicles. Leiters is also expected to pursue additional cost reductions through discussions with labor representatives as Porsche aims to enhance its performance following its exit from Germany’s DAX index.
The article “Porsche weighs scrapping electric models as costs climb” originally appeared on Just Auto, a GlobalData-owned brand.
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