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Porsche’s New Electric SUV Is Smashing Records Before It Even Reaches Showrooms

  • The Cayenne Electric has active suspension and a useful 7,716 lbs tow rating, Porsche says.
  • Former Top Gear man Richard Hammond got to try the SUV’s tow skills in a YouTube video.
  • A pro driver then used the Cayenne EV to smash a British hillclimb record by over 4 seconds.

Porsche is set to unveil its first electric Cayenne later this year and will preview a camouflaged version at this month’s Goodwood Festival of Speed. But the EV has already been seen in action at another British hillclimb where it smashed an SUV record by 4 seconds and jumped off the line as fast as the slick-shod purpose-built racecars running at the same event.

The location for the runs was the historic Shelsey Walsh hillclimb, which claims it’s the oldest motorsport venue in the world still using its original course – it held its first event in 1905. Gabriela Jílková, a development driver for the TAG Heuer Porsche Formula E Team, hurled the EV up the twisty 1,000-yard (914 m), 16.7 percent grade road in 31.28 seconds, destroying the 35.53-second record previously set by a Bentley Bentayga.

Related: Porsche’s Electric Cayenne Dash Packs Four Screens And Barely Any Buttons

Official time-keeping data also showed the Cayenne covered the first 60 yards (18.3 m) in only 1.94 seconds, a time equaled at the event only by single-seater racecars with slick tires, despite the Porsche making do with road-legal summer rubber.

Porsche didn’t reveal how much power the record-breaking Cayenne prototype had at its disposal, but we do know some key details thanks to a video in which former Top Gear host Richard Hammond got to try the EV before handing it over to the Jílková for the Shelsey runs.

Hammond confirms that the Cayenne features Porsche’s Active Ride suspension, a system that appears on the Taycan, but not on the Macan EV whose platform the Cayenne shares. He also notes that the synthesized sounds the EV makes in its Track mode sound a bit like a combustion V8’s and says he was told the power output would be greater than the 730 hp (739 PS / 544 kW) generated by the punchiest of the ICE Cayennes, the turbo E-Hybrid.

Potentially of more interest to anyone with boats or trailers to haul is the news that the Cayenne Electric – depending on spec – has a towing capacity of 7,716 lbs (3,500 kg). While certain EVs like the GMC Hummer can pull more (12,000 lbs / 5,440 kg), the Cayenne Electric’s rating matches the tow rating of both the Rivian R1S and the combustion Cayenne which will continue to be sold alongside the new EV.

To prove the point Hammond used the Cayenne to drag his heavy, vintage Lagonda, and claimed the electric motors made light work of hills.

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Porsche

Porsche’s Electric Cayenne Dash Packs Four Screens And Barely Any Buttons

  • Porsche’s new Cayenne Electric isn’t short of digital real estate, new spy images reveal.
  • In addition to the digital gauge cluster, the SUV’s dash has three more touchscreens.
  • The Cayenne Electric uses the same PPE platform as the Macan Electric, debuts late ’25.

Porsche has recommitted to building combustion cars in response to slower than expected growth in the luxury electric sector, but it’s still got plenty of EVs in the pipes, including the Cayenne Electric that debuts at the back of this year.

Also: Porsche’s Electric Sports Cars Delayed Again As Problems Mount

These new spy shots give us our best look yet at the first Cayenne EV, including how the Macan Electric’s big brother will look inside. We hope you like screens, because the Cayenne has four of them packed into a dashboard and console that offers plenty of familiar Porsche design cues, but some new ones as well.

More Screens, Fewer Buttons

There are three screens on the upper level of the dashboard, one a curved non-touchable display set back from the main dash that serves as a configurable gauge cluster. Next to that are two touchscreens – one in the center, one above the glovebox – that are housed under a single piece of glass to make it look like one huge display stretches across two-thirds of the interior.

But unlike the Macan, the Cayenne has a fourth tablet-sized touschcreen located lower down on the console, which will presumably handle climate and seat heating/cooling duties. Physical buttons appear to be in short supply, though we can see four toggles that look like they’ll be used for nudging the temperature up and down, and a thumbwheel volume control.

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SHProshots

A Porsche Sport Chrono clock sits on top of the dash, a feature that dates back to the introduction of the 997-generation 911 in 2004, and the Cayenne Electric adopts the dash-mounted toggle gearshifter used on all of Porsche’s most recent four-door cars. But the shape of the console is new, a pronounced hump just below the dash possibly making room for a smartphone charging tray underneath.

Familiar Platform, Fresh Execution

This prototype stepped out wearing no bulky disguise and just some fake headlight, DRL and grille stickers to hide the true details of a front end that’s likely to look very similar to the Macan Electric’s. And that’s not all they share. The Cayenne EV isn’t an electrified version of the ICE Cayenne, but is built on a stretched version of the VW Group PPE platform found under the Macan EV as well as Audi’s A6 e-tron and Q6 e-tron.

The Cayenne should borrow some of the Macan’s motors, though it’ll likely skip the RWD versions’s 335 hp (340 PS / 250 kW) unit and kick things off with the 402 hp (406 PS / 300 kW) from the Macan 4. At the other end of the scale a full-house Turbo will easily eclipse the 630 hp (639 PS / 470 kW) Macan Turbo.

Coming in 2026, Starting Around $90K

Watch out for the first zero-emissions Cayenne’s global debut later this year and expect to see the EVs on the street in 2026 priced from around $90,000, though a well-optioned Turbo will probably set you back well past the $130,000 mark.

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SHProshots

Porsche Could Announce A New Macan ICE As Soon As March

  • Porsche is reportedly reconsidering its decision to end the Macan’s gas-powered version.
  • This move signals a clear commitment to internal combustion models for the near future.
  • Still, it could still take a few years before a new Macan ICE rolls off of the production line.

Porsche may be getting ready to reverse course on one of its biggest bets. A new report suggests the automaker is reconsidering its decision to retire the internal combustion version of the Macan, its best-selling crossover. Not long ago, the company was confidently signaling the end of the gas-powered Macan. Now, that stance appears to be shifting.

We’ve heard rumors that this could happen already this year. Lutz Meschke, Porsche’s Chief Financial Officer stated in January that, “We are exploring the possibility of equipping some of the originally planned electric models with hybrid drives or internal combustion engines in the future.” Now, his words have sparked further investigation and one publication says an announcement could come soon.

More: Porsche Testing 2026 Cayenne EV In Two Different Chilli Strengths

Here’s what Car Magazine says about the situation. “A combustion version – presumably sharing underpinnings with the new Audi Q5 – would most likely take three years to develop, meaning a long absence from the market of one of Porsche’s biggest sellers. An announcement is expected in March.” Sure, that’s months away, but these things take time.

If true, it would mean Porsche working hard between now and then to revamp its plans. Announcing a new Macan ICE in March of 2026 could also have the benefit of making its launch feel closer. No doubt, if Porsche does decide to go this route, and all indications are that it’s at least considering it, we could see test mules before the end of the year.

 Porsche Could Announce A New Macan ICE As Soon As March

With the latest Audi Q5 already on the road, Porsche wouldn’t be starting from scratch. Sharing a platform could accelerate development and help control costs. The real challenge will be figuring out how to keep Macan customers engaged in the meantime.

Macan EV Holds Its Own, for Now

That’ll be the toughest hurdle but the Macan EV isn’t exactly a flop. Porsche sold 18,278 of them in the final quarter of 2024. While regulation in Europe spelled the demise of the Macan ICE, it’s encouraging for Porsche that the EV version made up 66 percent of the model’s sales for the year.

That’s an encouraging sign, though the company is clearly watching what happens next. Models like the Taycan have shown how EV sales can soften over time. The task now is to maintain momentum while preparing for a possible return to combustion.

 Porsche Could Announce A New Macan ICE As Soon As March

Fastest Electric Porsche Ever Just Annihilated a Track Record

  • The Taycan Turbo GT annihilated Porsche’s previous record by almost 7 seconds.
  • Porsche’s electric four-door is less than 1 second slower than the 911 GT3 RS.
  • A set of sticky Pirelli P Zero Trofeo RS tires funnels all 1,019 hp to the ground.

Porsche’s Taycan Turbo GT is on a mission to claim back some bragging rights in the electric car arena. After Xiaomi’s recent announcements about snatching the record at the Nurburgring and Shanghai, Porsche has wasted no time making sure its own electric sedan gets the spotlight.

Also: There’s A Porsche Program Even Rarer Than Paint To Sample

Last month, the all-electric sedan was taken to Road Atlanta and, with Patrick Long behind the wheel, set a storming best lap of 1:27.15. That easily toppled the Taycan Turbo S that had once held the EV record, and proves just how focused the Turbo GT is.

For the record run, Porsche used a Taycan Turbo GT with the optional Weissach Package, which removes the rear seats, transforming the four-door sedan into a four-door two-seater. The car was also fitted with ultra-sticky Pirelli P Zero Trofeo RS NF0 performance tires developed specifically for it.

In recording a best lap of 1:27.15, the Turbo GT smashed the Turbo S’s previous record of 1:33.88 by a massive 6.73 seconds – an age around a circuit. Porsche says the lap was recorded with the tire pressures set at 37 psi, the battery charged at 97%, and most of the track dry, although there were a few damp patches.

The Taycan Turbo GT is still some way off the production car lap record of 1:22.80 set by the new 2025 Chevy Corvette ZR1 earlier this year, but no one in their right mind would expect an electric sedan to get close to that. The Taycan’s time is a little closer to the Porsche 911 GT2 RS’s 2019 1:24.88 run, which, at the time, was a record. Porsche’s EV also came close to upsetting the 991 GT3 RS which has posted a 1:26.24 lap at the same track.

 Fastest Electric Porsche Ever Just Annihilated a Track Record

Speaking after the record run, Long said, “I expected the steering feel, connection, and feedback, but I didn’t expect how powerful the Active Ride suspension would be in counteracting pitch, roll, and squat.”

Read: Porsche Orders UK Dealers To Stop Selling Some Taycans

Earlier this year, the Taycan Turbo GT set a new EV lap record at Interlagos and, in 2024, did the same at the WeatherTech Raceway Laguna Seca track and the Shanghai International Circuit. It also previously held a record at the Nurburgring Nordschleife.

However, in recent months, Xiaomi’s SU7 Ultra has snatched away the Taycan’s records in Shanghai and at the ‘Ring. It seems like Porsche is not happy with the Chinese stealing the limelight and is on a mission to show just how quick the Taycan can be.

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Tesla Penalized Over A Word In Driver Assistance Tests And It Could Cost Them More Than A Score

  • Euro NCAP released Assisted Driving test results covering nine models from various automakers.
  • Tesla Model S, Volvo EX30, and MG ZS were each rated as only “Moderate” in evaluations
  • Porsche Macan, Toyota bZ4X, Kia EV3, and Renault 5 all earned a “Very Good” safety rating.

Drivers may love the promise of hands-free, mind-at-ease driving, but not all advanced driver assistance systems are created equal. Tesla has long marketed its vehicles as tech-forward and autonomous-ready, but fresh data from Euro NCAP tells a different story, especially when it comes to how clearly the system communicates with drivers.

More: Chinese SUV Beats Porsche Macan To Become Euro NCAP’s Safest EV In 2024

The Model S earned just 30% in Assistance Competence, a category where even smaller and more affordable EVs outperformed it. For comparison, the Kia EV3 scored 74% and the Renault 5 managed 73%. Both vehicles cost significantly less and make fewer promises about automation.

Euro NCAP’s Assisted Driving Grading program is built to evaluate how safely and responsibly automakers implement partially automated features. The scoring system weighs two key areas: Assistance Competence, which looks at how well the system communicates with the driver, and Safety Backup, which assesses how the car handles actual safety interventions, such as collision avoidance.

In the most recent round of testing, both the Tesla Model S and the Volvo EX30 received a “Moderate” rating, an underwhelming result for two companies that lean heavily on safety and tech in their marketing.

Tesla’s Language Problem

Tesla’s latest Autopilot system in the Model S did deliver a strong 94% score for Safety Backup, but its poor Assistance Competence score pulled the overall rating down. Euro NCAP cited the misleading “Autopilot” branding and promotional language, which they say overstates the system’s capabilities and can mislead drivers into overestimating how autonomous the system really is.

“Tesla is misleading consumers about their Autopilot system’s capabilities simply through its name and marketing, which could have potential safety implications,” said the organization. “A well-designed system will co-operate with the driver, appropriately inform about the level of assistance, and ultimately offer crash avoidance in critical situations; otherwise, it may introduce additional risks.”

Another problem noted by the testers is that the steering input of the Model S is resistant to a driver attempting to override it, and when they do, it automatically disengages.

“The name ‘Autopilot’ of Tesla’s system, as well as its promotional material, all suggest full automation, which is deemed inappropriate by Euro NCAP and led to a downgrade in their score,” said Euro NCAP. “Additionally, unlike the Porsche, its steering input is resistant to a driver attempting to override it, and when the driver does, the system automatically disengages, limiting its usefulness.”

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EuroNCAP

As for the Pilot Assist system fitted on the Volvo EX30, it scored 72% for Safety Backup and 62% for Assistance Competence. The main reason for the relatively low scores is that the driver has to take their eyes off the road in order to check the system alerts on the centrally mounted touchscreen. Furthermore, the driving assistance systems were found not to disengage, even after repeated hands-off alerts.

Other vehicles in this round had mixed showings. The MG ZS also landed in the “Moderate” category, while the Mazda CX-80 and the Chinese XPeng G9 fared better with “Good” ratings.

The Pleasant Surprises

More encouraging results came from four models that earned a “Very Good” rating. The Porsche Macan’s, using its InnoDrive system with Active Lane Keeping, scored 92% for Safety Backup and 85% for Assistance Competence, the highest in this round. Euro NCAP praised the clarity of its status displays and the transparency of its promotional materials.

More: The Brands With The Most 5-Star Safety Ratings Over The Last 10 Years

Other good performers with intuitive systems included the facelifted Toyota bZ4X crossover and the Kia EV3 small SUV. Finally, the Active Driver Assist package of the Renault 5 electric supermini impressed Euro NCAP’s testers, who praised it for “demonstrating how assisted driving systems can perform just as well on more affordable cars”.

Adriano Palao, ADAS Technical Manager at Euro NCAP, said: “The safe operation of Assisted Driving systems can only be achieved if consumers clearly understand their role as drivers, know how to operate the system, and are aware of its limitation…A well-designed system will cooperate with the driver, appropriately inform about the level of assistance, and ultimately offer crash avoidance in critical situations; otherwise, it may introduce additional risks.”

Below you can find the scores of all nine models that participated in this testing phase.

EURO NCAP ASSISTED DRIVING 2025 TEST RATINGS
ModelRatingAssistance
Competence
Safety
Backup
Kia EV3Very good74%88%
MAZDA CX-80Good62%79%
MG ZSModerate65%62%
Porsche MacanVery good85%92%
Renault 5Very good73%92%
Tesla Model SModerate30%94%
Toyota bZ4XVery good83%89%
Volvo EX30Moderate62%72%
XPENG G9Good71%71%
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Porsche Orders UK Dealers To Stop Selling Some Taycans

  • Porsche UK has instructed dealers not to sell some Taycans until a software update is available.
  • Pre-facelift cars suffer from a battery monitoring fault which can’t be fixed until late June.
  • Some existing owners have been visiting dealers every 60 days to have their cars checked over.

Porsche dealers in the UK have been told to hold off from selling some used Taycans while the company works out a software patch for a battery monitoring problem. And for those unlucky enough to already own certain Taycan models, they are being forced to visit their dealer every 60 days to have their cars checked until the update is ready. Porsche told us the new software is currently being tested and should be ready within a few weeks.

Related: Porsche Hit With Class Action Over Taycan Batteries That Could Catch Fire

The story was first reported by Britain’s Car Dealer magazine, whose team had heard from multiple Porsche dealers that they’d been ordered to remove used electric Taycan models from sale until further notice. At least one dealer suggested the edict blocked the sale of every Taycan built between 2019 and 2023. But when we called Porsche a spokesperson told us only a small number of older cars are affected.

“Enhanced battery monitoring software is anticipated to become available for first generation Taycan models towards the end of June,” Porsche said in a statement emailed to Carscoops. “With its imminent arrival, we’ve advised our retail partners not to sell a small, specific batch of first generation Taycan models until the software update is live.”

 Porsche Orders UK Dealers To Stop Selling Some Taycans
Porsche

Last fall Porsche issued a recall campaign for 2019-23 Taycans due to the risk of a short circuit within the cars’ battery modules that could lead to a “thermal event” and eventually a fire in a worst case scenario. Owners were advised not to charge their cars beyond 80 percent to minimise there risk of fire.

As for the owners forced to check-in with their Porsche dealership every 60 days, you just know that however inconvenient it is, there are certainly worse places to while away an afternoon.

 Porsche Orders UK Dealers To Stop Selling Some Taycans

What’s Driving Thousands Of Job Cuts At Porsche And Volvo?

  • Volvo and Porsche have announced plans to cut approximately 6,900 jobs globally.
  • Porsche blames slow EV adoption for pushing them to offer more ICE-powered models.
  • Both companies cited a challenging environment that includes a trade war and electrification.

European automakers are feeling the squeeze as they brace for an uncertain future, with workforce reductions becoming a common theme. Last year, Volkswagen set the tone by revealing plans to trim more than 35,000 jobs in Germany by 2030.

Porsche and Volvo are now following suit as both companies have announced cuts due to “challenges.” Starting with the former, Porsche has announced a strategic realignment plan, which includes “adapted product and corporate planning” thanks to the “significantly longer transition phase” to electric mobility.

More: VW Confirms More Than 35,000 Job Cuts In Germany, Golf Production Moving To Mexico

Because of slower than expected adoption, Porsche will offer additional vehicles with combustion engines and plug-in hybrid powertrains. The company also announced a “realignment of battery activities.”

 What’s Driving Thousands Of Job Cuts At Porsche And Volvo?

More notably, Porsche has launched an “extensive cost and rescaling program.” This will result in around 3,900 job cuts by 2029. The company is also planning to have discussions with their works council on a “structural package” that is “intended to make Porsche even more efficient in the medium and long term.”

Porsche CEO Dr Oliver Blume didn’t mince words as he said, “The world has changed” and “We are experiencing a fierce storm.” However, he said “We accept the challenge. We have a plan. We are acting. And we’re not wasting any time.”

Volvo Is Cutting 3,000 Jobs Globally

 What’s Driving Thousands Of Job Cuts At Porsche And Volvo?

Over in Sweden, Volvo revealed a number of cuts as part of their previously announced “cost and cash action plan.” The latest effort targets redundancies and is slated to see the elimination of around 3,000 jobs globally. The automaker said these will “primarily affect office-based positions in Sweden and will represent around 15 percent of the total office-based workforce globally.”

The automaker went on to explain the figure includes approximately 1,000 consultants as well as 1,200 employees in Sweden. These eliminations are slated to occur this fall and the company expects the latest restructuring costs to total up to SEK 1.5 billion ($157.6 / £116.2 / €138.5 million).

Volvo CEO Håkan Samuelsson said, “The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars.” He added, “The automotive industry is in the middle of a challenging period. To address this, we must improve our cash flow generation and structurally lower our costs.”

 What’s Driving Thousands Of Job Cuts At Porsche And Volvo?

Porsche’s Electric Sports Cars Delayed Again As Problems Mount

  • Porsche’s planned electric Boxster and Cayman have been delayed due to battery shortages.
  • Swedish battery manufacturer Northvolt’s bankruptcy has hampered the brand’s EV progress.
  • The three-seat K1 electric SUV may have also been pushed back to the end of the decade.

Porsche’s decision to create all-electric versions of the 718 Boxster and Cayman was bound to trigger some strong opinions among enthusiasts, but the controversy doesn’t stop there. Porsche’s ambitious EV project has already encountered a string of significant obstacles. Not only are they struggling to replicate the driving dynamics of the gas-powered models, but a new report reveals that the electric versions have been pushed back for a second time.

Read: Porsche Changes EV Plan, Will Give Electric Models ICE Powertrains Too

The original plan was to unveil the electric Boxster and Cayman in 2026, but Porsche’s CEO, Oliver Blume, recently admitted that the company is facing major difficulties sourcing the high-performance battery cells needed for these cars. A big part of the problem stems from the unexpected bankruptcy of Swedish battery manufacturer Northvolt late last year, which has only complicated Porsche’s EV ambitions.

A Disrupted Timeline

European sales of the current 718 duo were abruptly cut off in mid-2024, thanks to a run-in with new cybersecurity regulations. While the cars are still available in other markets, including North America, Automobilwoche reports they will be discontinued by the end of 2025.

Porsche had originally planned to launch the electric versions in 2026, allowing them to seamlessly replace the internal combustion engine models. However, that timeline is now in disarray, meaning Porsche might face a gap of a year or more without any Boxster or Cayman in their lineup, with the new launch window now stretching into 2027.

More Battery Issues

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Porsche 718 EV prototypes (Photos Baldauf)

This is far from the only battery-related issue Porsche is facing. In June 2021, it founded the Cellforce Group to develop and manufacture battery cells, establishing a site near Tubingen, Germany, but because of difficulties from competing with rivals from Asia, it’s unlikely Cellforce will get the outside investment needed to start production. As such, its “cells will likely never find their way into the sports cars from Zuffenhausen,” the German outlet reports.

To avoid putting all its eggs in one basket, Porsche took the step of acquiring a majority stake in Varta’s e-mobility battery unit back in March, hoping to secure a more reliable supply of high-performance cells. Still, it’s clear that these supply chain issues are adding unwanted complexity to the company’s EV transition.

A Delayed SUV and a Shift in Strategy

It’s not just the electric Boxster and Cayman that are impacted by the battery chaos. Porsche has spent several years working on a three-row electric SUV known internally as the K1. It was initially going to be launched in 2027, but has reportedly been delayed until the end of the decade.

 Porsche’s Electric Sports Cars Delayed Again As Problems Mount
Images: Baldauf

Wolfburg Research analyst Fabio Hölscher believes Porsche may have overcommitted to its electrification plans too soon. “Porsche‘s original model portfolio plans are what currently amplifies these market-driven setbacks,” he told Auto News.

“Because the battery electric adoption is behind schedule, Porsche now has to develop additional combustion models on top of dealing with the costly delays in BEV ramp-up, as well as managing the weak situation in China and uncertainty around U.S. exports,” he added.

Porsche had initially set a goal for 50% of its sales to come from BEVs and PHEVs by 2025, with the aim of reaching 80% BEV sales by 2030. However, the company has since scaled back those targets and is working on new combustion powertrains. There’s even talk that the electric Boxster, Cayman, and K1 might eventually be designed to also accommodate internal combustion engines, just in case the market demands it.

 Porsche’s Electric Sports Cars Delayed Again As Problems Mount

Porsche’s Electric Cayman Is Coming Even If You Still Want The Old One

  • Porsche is testing the upcoming Cayman Electric at the Nurburgring.
  • Two prototypes show different wheels and an active rear spoiler.
  • Single-motor RWD and dual-motor AWD versions will be offered.

Porsche brought electric power to its sports car lineup for the first time last year with the launch of the 911 GTS Hybrid, but that’s pretty mild compared with what’s about to happen to the 911’s Boxster and Cayman baby siblings. The two-seat coupe and roadster are ditching combustion technology altogether, and spy photographers have just snapped a couple of Cayman prototypes trialing their EV powertrains on and around the Nurburgring.

Related: Porsche 718 Cayman Electric Spied For First Time

Our scoop photo teams has spotted the Boxster several times before over the last couple of years and they snapped some grainy, long-lens pics of the Cayman on its first trip outdoors at the beginning of the year. But these fresh images are much sharper and show two cars with different wheel designs.

A Familiar Silhouette, Under New Power

Despite switching to an all-electric powertrain, the proportions of the new Cayman are very similar to those of today’s ICE-powered car. It still looks like a classic mid-engined junior supercar with a nose that dives towards the pavement and a sleek fastback tail. One of the great things about the ICE 718s is how practical they are thanks to having a trunk at either end, and we expect the EVs to carry on that tradition.

The set of pictures taken on the Nurburgring itself shows a small active spoiler at the base of the liftback hatch in a raised position. Directly below it in the center of the bumper is the charging flap for the battery that is mounted vertically behind the seats and will feature 800-volt tech. The nose features the same active cooling slats seen on the 911 GTS Hybrid and the disguise on the rear quarter window and lower quarter panel hides an upswept windowline and lower air intake, like on the Mission R concept.

Rear-Drive or All-Wheel Drive? You’ll Have Options

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Images: Baldauf

Both single-motor, rear-wheel drive and dual-motor, all-wheel drive versions should be available when the Boxster and Cayman go on sale in 2026 as MY27 cars. Though the 911 has been available with AWD traction for 35 years, this will be the first time it’s been offered in the mid-engined, entry-level sports cars.

Porsche has partially put the brakes on its electrification plans due to slower-than-expected development of the electric market, and is extending the lifespan of combustion engines and re-engineering some still-secret new EVs to take ICE power. But the new 718 Boxster and Cayman were too far down the development path to be reconfigured with an ICE option in time for launch.

It’s possible Porsche could adapt them and introduce combustion options later, as Fiat is doing by turning its slow-selling 500e into a hybrid. Although global 718 sales were down in Q1, that was largely due to the car being dropped in Europe due to the same cybersecurity regulations that forced the demise of the old ICE Fiat 500. In the US, 718 sales almost doubled in the first three months of this year.

The Real Test: Handling Like a Porsche

Porsche is also reported to have been struggling to make the EV Cayman handle as well as the outgoing combustion car, a problem that might have led to pushing back the planned debut from 2025 to 2026 – and can only drive sales of the current 718. The automaker can’t afford to mess the handling up, because the Cayman Electric is going to face some stuff competition from the new Alpine A110 EV.

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Images: Baldauf

VW’s 1 Millionth EV Is Here, But It’s Crushing Them

  • VW is celebrating the production of its 1 millionth EV, an ID.3 GTX.
  • Electric sales doubled in Europe in the first three months of 2025.
  • But EVs are less profitable and have contributed to lower earnings.

Party hats were compulsory headgear at VW’s Zwickau plant in eastern Germany this week. The factory produces six different EVs for various VW Group brands and just built its millionth electric car, an ID.3 GTX hot hatch. But Zwickau’s busy production lines are causing a headache for the bean counters at VW’s Wolfsburg HQ.

The problem is that EVs are expensive to build and deliver smaller margins than equivalent combustion-powered cars. And while electric sales doubling in Europe in the first quarter of 2025 is something to celebrate, some of those sales come at the expense of ICE sales.

Related: VW ID.2 Might Have A Shot In America, But ID.1 Is ‘Highly Unlikely’

As EVs take up a greater proportion of the sales mix – they accounted for one in five VW Group cars in Jan-March – they push profitability down, reducing the margin to 4 percent. And the withdrawal of EV subsidies in many European countries means VW can’t lean on government incentives to allow them to charge more.

But there is light at the end of the tunnel in the form of the VW ID.2 and its various spinoffs and related EVs. The €25k ($28k) ID.2, which will be built in Spain, goes on sale in 2026 and should be one of the first Western-built EVs to return margins close to an ICE car’s. The baby VW and its sister SUV, plus the Cupra Raval and Skoda Epiq use a new front-wheel drive version of the MEB platform that costs less to produce.

 VW’s 1 Millionth EV Is Here, But It’s Crushing Them

Earlier this month VW revealed that earnings before tax were down 40 percent to €3.1 billion ($3.5 bn) in Q1 even as deliveries increased by 1.4 percent. The company’s finance chief Arno Antlitz partly attributes this to EVs taking a bigger slice of the sales pie.

But President Trump’s tariffs threaten to throw an even bigger spanner in the VW Group’s plans. The constantly-changing US import tariff situation is making it harder for automaker to make financial forecasts for the rest of the year, but VW, which is badly exposed due to Audi and Porsche’s lack of US production sites, has already downgraded primed investors to expect a less successful year than previously anticipated.

 VW’s 1 Millionth EV Is Here, But It’s Crushing Them
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