Porsche shares fall; luxury carmaker will no longer manufacture diesel powered cars

Porsche shares fall; luxury carmaker will no longer manufacture diesel powered cars

Porsche shares are lower Monday, following news the luxury carmaker will no longer manufacture Porsche vehicles with diesel engines. The car manufacturer said the decision, which comes in the wake of the Volkswagen emissions scandal, will give it the ability to focus more on petrol and electric-powered vehicles.

By 1220 BST, Porsche shares were 1.18% lower at €58.42. The stock has been moving broadly higher in recent weeks.

Porsche drops diesel

Porsche said its decision to remove diesel vehicles from its catalogue isn’t an attempt to demonise diesel. As diesel has never been a priority option for the sportscar maker, it’s simply taken the decision to invest more in the fuel and power that its customers want.

Porsche added that it has not had a diesel vehicle in its portfolio since February 2018.

“Porsche is not demonising diesel. It is, and will remain, an important propulsion technology,” Porsche’s CEO Oliver Blume.

“We as a sports car manufacturer, however, for whom diesel has always played a secondary role, have come to the conclusion that we would like our future to be diesel-free. Naturally we will continue to look after our existing diesel customers with the professionalism they expect,” Blume added.

Focus on electromobility for the future

Porsche added that this announcement of the removal of diesel-powered cars, was more reflective of the way the car manufacturer was naturally heading.

“Our aim is to occupy the technological vanguard – we are intensifying our focus on the core of our brand while consistently aligning our company with the mobility of the future,” Blume said.

The move comes after Porsche’s parent company, Volkswagen continues to feel the repurcussions of the emissions scandal that erupted in 2015. Porsche has also been caught up in this, with its Cayenne 3.0 litre V6 diesel vehicles of the Euro 6 emission.

By Ilona Billington
Ilona is a freelance writer and editor with over 15 years experience reporting and writing about UK and European economics, real estate, financial markets and central banks.
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