Porsche weighs scrapping electric 718 Boxster, Cayman to rein in costs

Porsche AG is considering shelving an electric sports car line to cut costs that have ballooned due to its overly ambitious EV bet, according to people familiar with the matter.

New Chief Executive Officer Michael Leiters may scrap the planned 718 line of Boxster and Cayman EVs because of development delays and rising expenses, said the people, who declined to be named discussing internal deliberations.

The gasoline versions of the two models for years proved a relatively affordable path to owning a Porsche, with starting prices at around €70,000 ($82,754). They were discontinued in 2025.

The move may be necessary because Porsche faces budget constraints due to slumping sales in China and the cost of reversing its EV strategy. Deliberations to add a plug-in hybrid variant to the new line have only complicated things further because such a car requires different underpinnings, the people said. That would delay the project by several years, putting Porsche at risk of introducing older technology at a time it needs to generate excitement with its products, they added.

While scrapping the line is one option Leiters is considering, he hasn’t made a final decision, the people said. The CEO, in the job since Jan. 1 after taking over from Oliver Blume, is under pressure to balance the spending constraints with concerns over underused factories due to lower-than-expected demand for Porsche’s EVs.

A spokesperson for Porsche declined to comment.

The company’s shares reversed declines and rose as much as 0.6% in afternoon trading in Frankfurt. The stock is still down some 9% since the start of the year.

The issues with the 718 line are part of a broader set of problems Leiters inherited following Porsche’s ailing EV push. The company is pivoting back to combustion-engine and hybrid models after cutting its guidance four times last year, a slump that also hit parent Volkswagen AG. Porsche has warned that the EV course correction would slash operating profit by as much as €1.8 billion in 2025. In addition, the automaker is grappling with import tariffs in the US, its biggest single market.

Porsche ended output of the combustion-engine 718 models last year and had planned to reintroduce them as electric variants as early as 2026, the people said. In 2024, their last full year of production, Boxster and Cayman sales rose 15% to 23,670.

Porsche has pledged to improve its financial performance after its shares dropped out of Germany’s benchmark DAX index last year. Leiters’ appointment boosted sentiment somewhat as it ended a controversial dual CEO role for Blume, who continues to head up Volkswagen. The former boss of McLaren Automotive Ltd. has a successful track record of pushing hybrids, including during a past stint at Porsche. He’ll also have to negotiate with labour leaders on additional cost cuts.

Achieving lasting progress may take time. Porsche Chief Financial Officer Jochen Breckner, in October, said that while 2025 would be a low point, returning to double-digit margins will be a target for the years to come after 2026.