Porsche Shuts Three Subsidiaries, Cutting More Than 500 Jobs

Porsche is closing three subsidiaries in a restructuring that will eliminate more than 500 jobs, the German automaker announced Friday. The move is part of a broader effort by chief executive Michael Leiters to refocus the company on its core business after a period of declining sales and profit. The highest-profile closure is Cellforce Group, a battery subsidiary that Porsche first scaled back in August after dropping plans to manufacture its own batteries. Cellforce was turned into a research and development arm, but Porsche now says it will pursue a "technology-open powertrain strategy" that relies more heavily on outside battery suppliers. Also being shut are Porsche eBike Performance, which made electric bicycle drive systems, and Cetitec, a networking software unit that served Porsche and the Volkswagen Group. Leiters, who became chief executive early this year, first outlined the realignment in March, saying Porsche would be made "leaner, faster and the products even more desirable." Since then, the company has exited several ventures, including an April agreement to sell its stakes in Bugatti Rimac and Rimac Group. Porsche's electrification program has struggled after a strong start with the Taycan in 2019. The Macan Electric was delayed by nearly two years because software development at Volkswagen's Cariad division fell behind schedule. First-quarter sales dropped 11 percent in North America, 21 percent in China and 18 percent in Europe. Porsche has blamed slower electric vehicle adoption for its difficulties, though its continued weak performance in China, where EVs now claim more than half the market, suggests other factors may also be at play. The company, which originally started Cellforce to develop batteries that would distinguish its EVs, is now shifting more of its new-vehicle efforts back to internal combustion platforms. It still plans to introduce new EVs, including an all-electric Cayenne expected this year.