Porsche shuts down e-bike, battery, software subsidiaries amid overhaul
Original: Porsche shutters e-bike, battery, software subsidiaries as part of company overhaul
Why This Matters
Major automaker retreat from diversification signals industry focus on core competencies
Porsche announced Friday it will close three subsidiaries including battery unit Cellforce Group, e-bike division, and software subsidiary Cetitec as part of strategic realignment. Over 500 employees will lose jobs.
German automaker Porsche is shuttering three subsidiaries as it faces declining sales and profits. Cellforce Group, the battery subsidiary previously realigned in August after Porsche dropped in-house battery plans, will close as the company pursues a 'technology-open powertrain strategy' relying on external suppliers. Porsche eBike Performance, which made e-bike drive systems, and networking software subsidiary Cetitec will also shut down. CEO Michael Leiters stated the company must 'refocus on our core business' for strategic realignment, forcing 'painful cuts.' Since March, Porsche has exited several ventures including selling Bugatti Rimac stakes to HOF Capital consortium. The company struggled with EV development delays including the Macan Electric pushed back nearly two years due to Volkswagen's Cariad software issues.