It turns out even Porsche isn’t immune to reality checks. Confronted with a prolonged sales slump and mounting pressure on its bottom line, Porsche is shifting gears with a major rethink of its product plans. The sports car maker is leaning back toward combustion engines, including hybrids, while taping the brakes on upcoming electric models, according to a statement issued Friday.

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“Today we have set the final steps in the realignment of our product strategy,” said Oliver Blume, CEO of both Porsche and the Volkswagen Group. “We are currently experiencing massive changes within the automotive environment. That’s why we’re realigning Porsche across the board. In doing so, we want to meet new market realities and changing customer demands.”

Ultra-Luxury SUV Rethink

One of the biggest changes involves the upcoming ultra-luxury SUV positioned above the Cayenne, known internally as the K1. While it was originally planned to be offered exclusively as a fully electric model, it will now “initially debut” with combustion and plug-in hybrid powertrains only.

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Meanwhile, fans of the gas-powered Panamera and Cayenne can breathe easy. Both models are set to continue with combustion and hybrid power well into the 2030s, with Porsche confirming that successor generations have now been penciled into its long-term Cycle Plan, securing their place in the lineup for years to come.

Delays in the Electric Rollout

A third major shift concerns Porsche’s other planned all-electric models. Without naming specific vehicles (though we suspect some may have been intended as replacements, such as for the current Macan EV), the company said the “delayed ramp-up of electric mobility” will push back their market launches.

More: Porsche Fast-Tracks New Compact SUV With Gas And Hybrid Power

The development of a dedicated next-gen EV platform that was meant to underpin these models, originally scheduled for the 2030s, will no longer proceed as planned. Instead, it will be rescheduled and undergo a full redesign in collaboration with other Volkswagen Group brands.

“This is the company’s response to the significantly slower growth of demand for exclusive battery-electric vehicles,” Porsche noted in its statement.

Even so, not all projects are affected. Porsche confirmed that electric models already deep into development, such as the soon-to-be-revealed Cayenne EV in both standard and coupe-SUV form, as well as a future two-door sports car in the 718 segment, remain on schedule.

These changes build on earlier decisions, such as developing a new combustion-engine SUV to replace the aging Macan, using the current Audi Q5 architecture as its base. It will be sold alongside the Macan EV, which was originally planned to stand alone in the lineup.

Global Pressures Bite

Beyond product planning, Porsche acknowledged that wider global pressures are weighing on its outlook. Rising US import tariffs, a cooling Chinese luxury market, and the slower pace of electric adoption are all shape the company’s cautious stance. The CEO conceded that the updated plan can only partially offset these challenges.

For example, pushing back the new electric vehicle platform will require depreciation and financial provisions, which are set to weigh on operating profit in 2025 by as much as 1.8 billion euros ($2.1 billion at current exchange rates), something the company had not accounted for in its most recent forecast.

For 2025, Porsche is maintaining its sales revenue outlook of 37 to 38 billion euros (approximately $40 to 41 billion). Profitability, however, is expected to be far slimmer, with returns on sales now projected at up to 2 percent, a steep drop from the earlier forecast of 5 to 7 percent.

Nissan’s latest round of strategy adjustments has claimed another casualty, and this time it’s the Ariya. Barely three years after launch, the electric crossover is already being scrubbed from the U.S. lineup for the 2026 model year, a move first outed in a dealer memo dug up by Autonews. When pressed, Nissan confirmed the decision.

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“Nissan is pausing production of the MY26 ARIYA for the U.S. market and reallocating resources to support the launch of the all-new 2026 LEAF, which will have the lowest starting MSRP out of all new EVs currently on sale in the U.S,” a spokesperson told us.

What About After 2026?

What happens beyond that date is anyone’s guess, though the odds don’t exactly promising. When asked whether the electric crossover might return for the 2027 model year, Nissan offered no commitment. “No decision has been made yet. We continue to monitor the market environment and will respond accordingly to ensure we are meeting consumer demand with the right line-up of electrified products,” the spokesperson said.

For anyone still eyeing an Ariya, dealer stock will remain until it runs out. Nissan also confirmed that existing owners will “continue to receive service, parts, and warranty coverage”, so support is not vanishing with the model.

Leaf Gets The Spotlight, Ariya Gets The Bill

When asked why the Ariya is being sidelined, Nissan pointed to changing conditions in the market. “The U.S. EV market is dynamic, and this is a proactive response to evolving consumer preferences. As demand grows for affordable and practical electrified vehicles, Nissan is leading with products that deliver both innovation and value. The all-new 2026 Leaf is key to meeting this demand,” the spokesperson said.

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Even so, we suspect that economic realities likely had as much influence as consumer taste. The federal EV tax credit is set to expire at the end of this month, pushing higher-priced models into a tougher corner. The Ariya also comes with an added cost problem: it is built in Japan, which means tariffs still apply, despite recent trade agreements trimming those duties to 15 percent.

The decision also appears to align with Nissan’s broader campaign to slim down operations as the company fights for survival after posting a record loss of roughly $5 billion for the financial year ending in April. That effort has intensified under new CEO Ivan Espinosa, who took over this past April. Measures have included workforce reductions in the tens of thousands, multiple plant closures, and a sweeping review of the global product portfolio, with every model now facing sharper scrutiny on profitability.

Ariya Still Pulls Its Weight

Despite all that, the Ariya has held a steady place in Nissan’s U.S. lineup – though no doubt helped by generous incentives that have inevitably weighed on the bottom line. In the first half of this year, 11,619 units were delivered, making it the company’s best-selling EV stateside and marking a 24.3 percent jump from the same period in 2024. By contrast, the outgoing Leaf managed 3,925 deliveries, which still represented a 28 percent increase year over year.

We’ve known for a while that Volkswagen was rethinking its electric vehicle naming strategy, but the finer points were left vague until now. The company has confirmed that the production version of the ID.2 all concept will be called the ID. Polo, with the sportiest version carrying the GTI badge, which is a first for an electric VW.

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“Our model names are firmly anchored in people’s minds,” said Thomas Schafer, CEO of the VW brand. “They stand for a strong brand and embody characteristics such as quality, timeless design and technologies for all. That’s why we’re moving our well-known names into the future. The ID. Polo is just the beginning.”

This approach means Volkswagen will blend its classic model names with the ID prefix for future EVs. That opens the door for possibilities like an ID. Tiguan down the line. To highlight the change, the company is showing camouflaged versions of both the standard ID. Polo and the ID. Polo GTI at the IAA Mobility motor show in Munich, offering the public an early look at what’s due next year.

From Concept to Production

From what we can decipher, the production models remain faithful to the ID.2 all and ID.2 GTI concepts. That’s anything but surprising, given that both were already presented as a near-production cars rather than far-off prototypes.

The overall design carries Volkswagen’s usual restraint, while the GTI version sharpens the edges with larger and intricately styled wheels, subtly flared arches, bespoke bumpers, a front diffuser, and a split spoiler on the tailgate. The stance sits lower, as you’d expect from a GTI.

“We are bringing one of our strongest brands, the GTI, into the electric world,” added Martin Sander, VW board member for sales and marketing. “Also launching in 2026, the ID. GTI Concept model will go into production as the ID. Polo GTI. It will offer outstanding dynamics and plenty of driving pleasure.”

Platform and Performance

Underneath, the ID. Polo is built on the electric-only MEB Entry platform. It measures 4,053 mm (159.5 in) long, 1,816 mm (71.5 in) wide, and 1,530 mm (60.2 in) tall, making it just a touch larger than the Alpine A290. All versions are expected to use a single motor driving the front wheels. For the GTI, output is projected at 223 horsepower, with rumors pointing to an even more focused Clubsport variant in the near future.

Production of the ID. Polo is scheduled to begin in time for a European launch in early 2026. VW has no plans to bring the subcompact hatchback to North America. At the same Munich show, the company will also reveal the ID. Cross Concept, a compact electric SUV that previews the production ID. Cross. Scheduled for release at the end of 2026, it will serve as the electric counterpart to the T-Cross.