Porsche Is Bracing for a Rough Year Due to Trump’s Tariffs and EV Policies
Donald Trump’s policies are, as always, controversial. But while the President is shouting that everything will be all right and that he is a visionary who will save the U.S. and the world, the current reality does not reflect this.
And while it is always possible that future events happen in such a way that Trump does, indeed, save someone, the current perspective looks rather grim, and it looks like the companies affected are preparing for losses.
The auto industry will be among the biggest short-term “victims” of Trump’s policies, and Porsche, a German company, is preparing for a tough year ahead on a market that is becoming very, very volatile.
There are two main factors that contribute to Porsche’s worrying stance here. First, it’s Trump’s tariffs. And while the tariff situation is an ever-changing one, as Trump has altered his decisions more than once, something is bound to happen. Seeing how Porsche imports all of its U.S. cars from Europe, they will be hit with a price increase.
Secondly, it’s Trump’s “battle” against electric vehicles. Porsche has been a pioneering company when it comes to EVs, and the sports and luxury car manufacturer will also be hit with losses in that aspect, as Trump is not advocating EVs like Biden’s administration.
As claimed, the company is expecting their profit margins to group from double to single-digits — between 6.5% and 8% — which is a significant drop from its earlier forecast of at least 10%.
Aside from the profit drops, these facts forced a change in strategy. As we’ve said, Porsche had been a pioneering company in terms of EV manufacturing, but the current state of the market will force them to reconsider their priorities, which will mean less investment in the EV department.
“We have to face the reality that we see from the markets, namely a complete slowdown when it comes to electric mobility,” CFO Jochen Breckner said recently.
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