Porsche Needs To Make More Money Before Electric Cars Eat Profits

EVs cost more to build than conventional vehicles.

Automakers everywhere have acknowledged that electric cars are the future. Porsche is certainly no exception, evidenced by the all-electric Taycan, due next year. But according to Bloomberg, Porsche is already preparing a plan to increase profits over the next several years because it’s about to spend more in EV development. Specifically, Porsche is currently formulating an ambitious plan to boost operating profit by 6 billion euros ($6.8 billion) over the next eight years by streamlining operations, cost-cutting, and increase digital business offerings.

The German automaker’s plan is to increase earnings before interest and taxes by around 750 million euros ($850 million) annually beginning this year through 2025.

The ultimate goal is to maintain parent company Volkswagen Group’s 15 percent target return on sales. You see, Porsche is vital to VW Group’s overall profits because it is its most profitable brand. To maintain its edge, Porsche needs to invest more money in self-driving and electric car development. The Taycan, for example, will cost 6,000 euros to 10,000 euros more to build than, say, a Panamera. Porsche will absorb those added costs instead of passing them down to the customer.

Meanwhile, Porsche is investing more than 6 billion euros ($6.8 billion) through 2022 on electric cars alone. If all goes to plan, this investment is expected to improve profit by about 2 billion euros ($2.3 billion) annually after 2025.

To give you a better indicator just how profitable Porsche is for VW, last year it made 4.1 billion euros ($4.65 billion) in operating profit and 23.5 billion euros ($26.6 billion) in revenue. As electric powertrain technologies become more widespread, the likelihood is very high production costs will eventually come down.

But for now, in order to continue making lots of money, Porsche needs to spend it wisely. Following the launch of the Taycan, expect additional Porsche models to receive the full-on electrification treatment, such as the future production version of the Mission E Cross Turismo concept and a version of the Macan.

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BREAKING: This Is The New Porsche 911 Before You're Supposed To See It

New spy shots show the 2019 Porsche 911 completely undisguised from every angle months before the official reveal.

Later this year, Porsche will unveil the all-new 911 (codenamed the 992). Several prototypes wrapped in camouflage have already been spotted undergoing testing, in what is fast becoming one of the most photographed prototypes of the year. Porsche seems to be struggling to keep the car under wraps, as a clear shot of the sports car’s sleek rear was leaked online earlier this year. More recently, we got another peek at the new 911 undisguised, but our spies only managed to capture the rear end of the car again as it was being pushed by Porsche employees.

This, however, is by far our best look yet at the 2019 Porsche 911, as these new spy shots show the car with practically no camouflage – and this time it’s been captured from almost every angle for our viewing pleasure months before the car's world debut. Some thin layers of tape cover the taillights and a sticker has been placed over the headlights, but the car is otherwise completely uncovered.

To the untrained eye, the 992-generation looks a lot like the old 911. And you’d be right since every new 911 arrives with evolutionary rather than revolutionary design changes. There are several key changes for the 992-generation, however. Firstly, it rides on an updated MMB platform, which is stronger and stiffer and can incorporate hybrid powertrains. Your eyes aren’t deceiving you: the new 911 is slightly longer due to this new platform.

The overall design looks more muscular thanks to the car’s wider wheel arches, and the hood now extends down to the front end. New LED headlights adorn the front along with a redesigned front bumper with large intakes at each corner, and the slimmer taillights are connected by a full-width light bar similar to the Cayenne, Macan, Panamera and old air-cooled 911 models. Like the car that was spotted last month, quad exhaust tips are integrated into the rear bumper, so we’re probably looking at the new Carrera 4S.

As is traditional, the new 911 range will be powered by a rear-mounted flat-six engine. The base 992 Carrera is expected to have around 400 hp on tap, while the output of the Carrera S could increase to 450 hp and the range-topping Turbo S will allegedly pack 620 hp. A hybrid version will eventually join the range for the first time in the model’s history, and it’s expected to be the most powerful 911 ever made (with rumors suggesting it will pack 700 hp). Inside, the interior will borrow some tech from the Panamera such as a larger infotainment screen. The 2019 Porsche 911 is expected to officially break cover at the Paris Auto Show in October, but at this rate Porsche won’t have much left to reveal.

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Porsche Wanted To Build An SUV 45 Years Before The Cayenne Arrived

This is the story of the 597 Jagdwagen.

Things have never been the same for Porsche since it launched the first generation Cayenne SUV back in 2002. Many Porschephiles still haven’t gotten over the fact their beloved sports car brand branched out beyond ass-engined and GT driver’s cars. Their heads nearly exploded when the Panamera arrived in 2009, and ultimately did so upon the Macan’s 2014 debut. But back in the mid-1950s, Porsche designed and built the 597 Jagdwagen, which translates to “hunting car.”

It looks very much like a post-WWII SUV, but don’t think of it as the Cayenne’s ancestor. They have absolutely nothing in common, mechanically speaking. The 597 was very much a rough and rowdy SUV without a hint of luxury or comfort. Back then, Porsche was still trying to find its footing in the industry; was it going to stick solely with sports cars, like the 356 and 550 Spyder? Perhaps not. Porsche figured it was worth taking a shot at winning a NATO-issued tender for a light army-transport vehicle inspired by the original American Jeep. The 597 Jagdwagen was the result, and it had one significant thing in common with the 356: it was also rear-engined.

Both 1.5- and 1.6-liter air-cooled flat-fours were prepared, though the latter was the “premium” engine with a grand total of 50 hp. Top speed? Around 62 mph. Weighing just under 2,200 pounds, the 597 Jagdwagen came with a five-speed manual gearbox – a lot of gears at the time – and the capability of switching between two- and four-wheel drive on the fly. Like any good German-built vehicle, the Jagdwagen was very purposeful, offering solid off-road capability and even managing a climbing gradient of 65 percent. It also had some amphibious capabilities, specifically floating without taking on water. Its monocoque shell did not have doors, but the high sills made it difficult for passengers to climb in and out.

For better or worse (depending on whom you ask), Porsche lost the tender to the DKW Munga, an off-road vehicle built by Auto-Union, the predecessor to today’s Audi. Its winning 4x4 went on to have a 12-year production run with 46,000 examples built. However, selling the car to civilians and private owners wasn't easy. As for Porsche, instead of ending the prototype project completely, it wanted to try to rebrand the Jagdwagen as a 4x4 aimed at hunters, and those who worked in outdoor professions. Porsche invested 1.8 million Deutschmarks into the project, an especially large sum at the time. It wanted the 597 Jagdwagen to find appeal somehow, as the company wasn’t in the mood to take a financial hit just yet.

The result was a somewhat refined civilian version 597 Jagdwagen, now equipped with doors. It could still float, though it was by no means seaworthy. A grand total of 71 units of the 597 were from 1955 until 1958, although just 49 were made for civilians. Not all of them survive today, but the few that do sell for some serious bank. Jerry Seinfeld had one in his vast Porsche collection that later sold for $330,000 at auction. Unlike any generation Cayenne, the 597 Jagdwagen was ugly, but in a cool way. It was designed to be purposeful, not stylish. And in some ways it was ahead of its time; who knew back then that Porsche SUVs would make up a majority of its annual sales.

Aside from its looks, perhaps one reason why the 597 Jagdwagen didn’t find buyers was because it simply looked too much like a German military vehicle. Anything with even a hint of a connection to the Nazis in post-war Germany was considered taboo.

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LEAKED: 2020 Porsche 911 Appears Before LA Debut

992 Porsche 911 week has officially begun.

First things first: Yes, we know these leaked images are not of the highest quality and we expect plenty of high-res images to arrive in another day or so. But thanks to the crew over at Jalopnik who received these leaked images from an anonymous source, you can see official images of the all-new 2020 Porsche 911 right here right now. Presenting the 992 generation 911 in all of its (grainy) glory.

Over the past few months, we’ve seen a lot of 992 911 spy shots and even a few showing nearly naked prototypes with little to no camo. But this is the week. More specifically, 992 911 week. It will be making its official debut in a few days at the LA Auto Show and we’ll be on hand to take plenty of live photos and bring you all of the biggest details.

For today, let’s examine a bit further these leaked images. Based on what we can tell from the rear end, the new 911 you’re looking at is the Carrera 4S. The other two images show the car from the front and a side-rear angle. We don’t have official specs at this time, but we can confidently confirm the following: it’ll be rear-engined and its engines will be turbocharged.

More specifically, those turbocharged flat-sixes will be heavily revised versions of the two currently available in the base 911 Carrera and Carrera 4S where the produce 385 hp and 450 hp, respectively. A new eight-speed dual-clutch gearbox is expected to replace the current seven-speed DCT but, again, that’s not exactly new news. The seven-speed manual is expected to be carried-over, though with some adjustments.

While the new 911’s exterior can’t be mistaken for anything but a 911, it’s the interior that’s undergoing the most dramatic styling changes. For example, expect a far more sophisticated dashboard design than on the current model as four out of the five gauges are now digital. The rest of the interior is also all-new and features a more premium look and build materials. So, when exactly will the 2020 Porsche 911 be revealed to the world. That will happen on Tuesday, November 27 at 8 p.m. LA time.

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2019 Porsche Macan Turbo Spied Towing A Trailer Before Official Debut

Porsche hasn't even attempted to disguise it with camouflage.

Back in July, Porsche unveiled the facelifted 2019 Macan, featuring fresh styling, a larger infotainment screen, and numerous chassis tweaks to further improve the company's best-selling model. However, Porsche has so far only revealed the 2.0-liter base model, so we still haven’t seen the facelifted Macan Turbo. Even Porsche’s online configurator still shows the pre-facelift model.

Fortunately, our spy photographers have spotted a prototype being tested, giving us a first look at the 2019 Porsche Macan Turbo before the official reveal. Porsche hasn’t even tried to disguise it as the prototype isn’t wearing any camouflage whatsoever, allowing us to clearly see the visual changes. Unsurprisingly, those changes are very minor.

Compared to the regular 2019 Macan, the Turbo version features a different front bumper with Turbo-specific LED DRLs, beefier brakes with red calipers, and squared quad exhaust pipes. Elsewhere, the changes introduced in the facelifted Macan have carried over, such as the new rear LED light bar and standard LED headlights. The prototype was also doing some trailer-towing testing, since some buyers may use it to haul light loads.

Porsche has already confirmed the 2019 Macan Turbo will share the same powertrain as the range-topping Cayenne S, meaning it will pack a twin-turbo 2.9-liter V6 with 434 horsepower. That makes it just as powerful as the current 2018 Macan Turbo with the optional Performance Package, so it should be capable of sprinting from 0-62 mph in under 4.5 seconds and hitting a top speed of around 170 mph. No word yet on when the 2019 Porsche Macan Turbo is likely to debut, but it will go on sale sometime next year.

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Porsche Wanted To Build An SUV 45 Years Before The Cayenne Arrived

This is the story of the 597 Jagdwagen.

Things have never been the same for Porsche since it launched the first generation Cayenne SUV back in 2002. Many Porschephiles still haven’t gotten over the fact their beloved sports car brand branched out beyond ass-engined and GT driver’s cars. Their heads nearly exploded when the Panamera arrived in 2009, and ultimately did so upon the Macan’s 2014 debut. But back in the mid-1950s, Porsche designed and built the 597 Jagdwagen, which translates to “hunting car.”

It looks very much like a post-WWII SUV, but don’t think of it as the Cayenne’s ancestor. They have absolutely nothing in common, mechanically speaking. The 597 was very much a rough and rowdy SUV without a hint of luxury or comfort. Back then, Porsche was still trying to find its footing in the industry; was it going to stick solely with sports cars, like the 356 and 550 Spyder? Perhaps not. Porsche figured it was worth taking a shot at winning a NATO-issued tender for a light army-transport vehicle inspired by the original American Jeep. The 597 Jagdwagen was the result, and it had one significant thing in common with the 356: it was also rear-engined.

Both 1.5- and 1.6-liter air-cooled flat-fours were prepared, though the latter was the “premium” engine with a grand total of 50 hp. Top speed? Around 62 mph. Weighing just under 2,200 pounds, the 597 Jagdwagen came with a five-speed manual gearbox – a lot of gears at the time – and the capability of switching between two- and four-wheel drive on the fly. Like any good German-built vehicle, the Jagdwagen was very purposeful, offering solid off-road capability and even managing a climbing gradient of 65 percent. It also had some amphibious capabilities, specifically floating without taking on water. Its monocoque shell did not have doors, but the high sills made it difficult for passengers to climb in and out.

For better or worse (depending on whom you ask), Porsche lost the tender to the DKW Munga, an off-road vehicle built by Auto-Union, the predecessor to today’s Audi. Its winning 4x4 went on to have a 12-year production run with 46,000 examples built. However, selling the car to civilians and private owners wasn't easy. As for Porsche, instead of ending the prototype project completely, it wanted to try to rebrand the Jagdwagen as a 4x4 aimed at hunters, and those who worked in outdoor professions. Porsche invested 1.8 million Deutschmarks into the project, an especially large sum at the time. It wanted the 597 Jagdwagen to find appeal somehow, as the company wasn’t in the mood to take a financial hit just yet.

The result was a somewhat refined civilian version 597 Jagdwagen, now equipped with doors. It could still float, though it was by no means seaworthy. A grand total of 71 units of the 597 were from 1955 until 1958, although just 49 were made for civilians. Not all of them survive today, but the few that do sell for some serious bank. Jerry Seinfeld had one in his vast Porsche collection that later sold for $330,000 at auction. Unlike any generation Cayenne, the 597 Jagdwagen was ugly, but in a cool way. It was designed to be purposeful, not stylish. And in some ways it was ahead of its time; who knew back then that Porsche SUVs would make up a majority of its annual sales.

Aside from its looks, perhaps one reason why the 597 Jagdwagen didn’t find buyers was because it simply looked too much like a German military vehicle. Anything with even a hint of a connection to the Nazis in post-war Germany was considered taboo.

View the original article here

2019 Acura RDX Design And Details Teased Before New York Reveal

All-new RDX gets 2.0-liter VTEC turbocharged engine and A-Spec variant.

Acura isn’t wasting time with the all-new 2019 RDX. After revealing the RDX Prototype at the North American International Auto Show in Detroit, Honda’s luxury brand will bring an example wearing production sheet metal to the New York Auto Show later this March. The 2019 Acura RDX goes back to its roots, powered by a new 2.0-liter VTEC turbocharged four-cylinder engine sending power to the pavement via the brand’s Super-Handling All-Wheel-Drive system.

Acura didn’t detail specifics for the 2.0-liter turbo engine, but expect output to be similar to that of the Honda Accord—252 horsepower at 6,500 rpm and 273 lb-ft of torque between 1,500 and 4,000 rpm. The RDX’s 10-speed automatic—a segment first—will likely offer the same paddle shifters as the Accord, too. Acura claims the 2019 RDX is the “most extensive Acura redesign in more than a decade,” which it says will set the tone for “a new era” for the brand. Its exterior will likely wear near identical sheet metal to that of the RDX Prototype, and probably the same interior, too. Acura calls it “Precision Cockpit” and it includes the brand’s True Touchpad Interface.

Like other Acuras of late, the RDX is expected to gain an A-Spec variant toward the top of its trim range. While Acura didn't specify how the A-Spec model will differ from other RDXs, don't expect more power or performance as the brand has generally limited A-Spec modifications to visual enhancements. Instead, any additional performance would likely arrive in the form of a new S-Type trim, which could bring with it a newly developed V6 engine. The 2019 Acura RDX is an all-American affair, designed by the folks at Acura Design Studio in Los Angeles, California, and developed by engineers in Raymond, Ohio. The third-generation SUV will go on sale later this year.

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Porsche Needs To Make More Money Before Electric Cars Eat Profits

EVs cost more to build than conventional vehicles.

Automakers everywhere have acknowledged that electric cars are the future. Porsche is certainly no exception, evidenced by the all-electric Taycan, due next year. But according to Bloomberg, Porsche is already preparing a plan to increase profits over the next several years because it’s about to spend more in EV development. Specifically, Porsche is currently formulating an ambitious plan to boost operating profit by 6 billion euros ($6.8 billion) over the next eight years by streamlining operations, cost-cutting, and increase digital business offerings.

The German automaker’s plan is to increase earnings before interest and taxes by around 750 million euros ($850 million) annually beginning this year through 2025.

The ultimate goal is to maintain parent company Volkswagen Group’s 15 percent target return on sales. You see, Porsche is vital to VW Group’s overall profits because it is its most profitable brand. To maintain its edge, Porsche needs to invest more money in self-driving and electric car development. The Taycan, for example, will cost 6,000 euros to 10,000 euros more to build than, say, a Panamera. Porsche will absorb those added costs instead of passing them down to the customer.

Meanwhile, Porsche is investing more than 6 billion euros ($6.8 billion) through 2022 on electric cars alone. If all goes to plan, this investment is expected to improve profit by about 2 billion euros ($2.3 billion) annually after 2025.

To give you a better indicator just how profitable Porsche is for VW, last year it made 4.1 billion euros ($4.65 billion) in operating profit and 23.5 billion euros ($26.6 billion) in revenue. As electric powertrain technologies become more widespread, the likelihood is very high production costs will eventually come down.

But for now, in order to continue making lots of money, Porsche needs to spend it wisely. Following the launch of the Taycan, expect additional Porsche models to receive the full-on electrification treatment, such as the future production version of the Mission E Cross Turismo concept and a version of the Macan.

View the original article here