Porsche is closing three of its subsidiaries — including its high-profile battery venture Cellforce Group — as the German automaker confronts declining sales and shrinking profits. The move, announced Friday, marks the most significant restructuring since CEO Michael Leiters took the helm earlier this year.
Three subsidiaries shuttered, more than 500 jobs affected
The most notable casualty is Cellforce Group, a subsidiary originally created to develop and manufacture high-performance batteries that Porsche once called ‘the combustion chamber of the future.’ After abandoning plans to produce its own cells in August, the unit was reduced to a research and development arm. Now, it will be shut down entirely as Porsche pivots to a ‘technology-open powertrain strategy’ — meaning it will rely on external suppliers for battery technology.
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Also closing are Porsche eBike Performance, which produced drive systems for electric bicycles, and Cetitec, a networking software subsidiary serving both Porsche and the wider Volkswagen Group. Together, the three subsidiaries employed more than 500 people, all of whom will lose their jobs.
‘We must refocus on our core business,’ Leiters said in a statement. ‘This is the indispensable foundation for a successful strategic realignment. This forces us to make painful cuts — including our subsidiaries.’
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A dramatic reversal from earlier EV ambitions
The closure of Cellforce is a stark reversal for Porsche, which had touted the subsidiary as central to its electric future. In 2022, then-chairman Oliver Blume declared that ‘the battery cell is the combustion chamber of the future.’ But the company struggled to bring follow-up EVs to market after the successful 2019 launch of the Taycan. The Macan Electric was delayed by nearly two years due to software development problems within Volkswagen’s Cariad division.
Porsche has since shifted much of its new vehicle development back toward internal combustion platforms, which were originally expected to represent a minority of sales by 2030. The company still plans to launch new EVs — including an all-electric Cayenne later this year — but the pace and ambition have clearly been scaled back.
Why this matters: sales are falling in key markets
The restructuring comes as Porsche faces declining demand across most major markets. In the first quarter of this year, North American sales fell 11%, European sales dropped 18%, and Chinese deliveries plunged 21%. Only the German market saw a slight increase.
Porsche has publicly blamed the broader EV adoption slowdown for its troubles, but the company’s particularly steep decline in China — where EVs now account for more than half of new car sales — suggests the problem is more specific to Porsche’s product lineup and competitive positioning.
The cuts also follow Porsche’s decision in April to sell its equity stakes in Bugatti Rimac and Rimac Group, further signaling a retreat from diversification into high-performance EV ventures.
Conclusion
Porsche’s decision to shutter Cellforce, eBike Performance, and Cetitec reflects a broader recalibration of strategy under new leadership. The company is shedding non-core assets and re-centering on its traditional strengths, even as it navigates a challenging transition to electrification. For readers, the story underscores how even well-capitalized automakers are struggling to balance long-term EV commitments with short-term financial realities.
FAQs
Q1: Why is Porsche closing its battery subsidiary Cellforce?
Porsche abandoned plans to manufacture its own batteries earlier this year and had already reduced Cellforce to a research unit. Now, as part of a broader cost-cutting drive, the company has decided to shut it down entirely and rely on external suppliers for battery technology.
Q2: How many employees are affected by these closures?
More than 500 people employed across the three subsidiaries — Cellforce Group, Porsche eBike Performance, and Cetitec — will lose their jobs as a result of the shutdowns.
Q3: Is Porsche abandoning electric vehicles entirely?
No. Porsche still plans to launch new EVs, including an all-electric Cayenne later this year. However, the company has slowed its EV rollout and is also reviving internal combustion platforms that were previously slated for phase-out. The strategy shift is toward a more flexible, ‘technology-open’ approach rather than a full pivot away from electrification.
