Porsche Doubles Investments in Electrification by 2022

The German sports car manufacturer Porsche announced on Monday that it will double its investments in the electrification of its entire lineup by 2022, as part of the Volkswagen Group’s response to a series of environmental pollution scandals and new challenges from abroad.

Porsche announced today that it will spend a total of more than six billion euros on the development of hybrid and electric vehicles over the next five years. Of the additional three billion euros, about 500 million will be directed towards the development of Porsche’s flagship electric model, the Mission E, which is expected to be launched for sale by the end of 2019.

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Porsche emphasizes that the Mission E will have 600 horsepower and will be able to travel 500 kilometers between charges, thus entering the race with the American champion in the electric vehicle segment, Tesla.

About one billion euros will be invested in the development of electric and hybrid versions of existing models, “several hundred million euros” in expanding production facilities, and around 700 million in building a network of fast chargers for electric vehicles.

However, the company does not intend to turn its back on traditional internal combustion engines, despite increasing doubts about that technology since the outbreak of the scandal involving VW’s falsification of emissions data from diesel engines in 2015.

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Their investments in electric vehicles are an integral part of the VW Group’s efforts to accelerate the introduction of electric cars across all its members.

Porsche CEO Oliver Blume stated to the dpa news agency that despite higher production costs for electric vehicles, they aim to maintain an operational margin of 15 percent in the long term.