technology
Porsche to Refocus Core Business by Closing Three Non-Core Subsidiaries
The German automaker announced the closures of Cellforce Group, Porsche eBike Performance and Cetitec on Friday, with more than 500 employees set to lose their jobs. CEO Michael Leiters cited the need to refocus on core business as part of a strategic realignment first outlined in March. The moves follow declining sales in key markets and a shift away from in-house battery development.
May 8, 2:28 PM·2m read1 source
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Porsche announced Friday it is closing three subsidiaries, including its battery unit Cellforce Group, as the German automaker seeks to refocus on its core business amid falling sales. The three subsidiaries being closed are Cellforce Group, Porsche eBike Performance and Cetitec. More than 500 people employed at the three subsidiaries will lose their jobs.
Cellforce Group is Porsche's battery subsidiary. It had already been through a realignment in August after Porsche dropped plans to make its own batteries. After the August realignment, Cellforce Group became a research and development arm.
Porsche eBike Performance made e-bike drive systems. Cetitec is a networking software subsidiary that served both Porsche and the wider Volkswagen Group. This is the indispensable foundation for a successful strategic realignment.
This forces us to make painful cuts — including our subsidiaries,” Porsche CEO and Executive Chair Michael Leiters said in a statement. Michael Leiters became CEO early this year. He first delivered a similar message in March when Porsche announced plans to realign its business.
“We will comprehensively reposition Porsche, make the company leaner, faster and the products even more desirable,” Michael Leiters said in March. In April, Porsche reached an agreement to sell its equity stakes in Bugatti Rimac and Rimac Group to a consortium led by New York-based investment firm HOF Capital. Porsche’s Taycan launched in 2019.
The Macan Electric was delayed by nearly two years due to software development issues within Volkswagen’s Cariad division. Porsche sales fell 11% in North America in the first quarter of this year. Porsche deliveries were off 21% in China in the first quarter of this year.
