Porsche has already walked back once on its plans to make the next-generation 718 a fully electric model, revealing its reworked electrification strategy in an investor call in September 2025 that will see a new internal combustion engine (ICE)-powered mid-engined model sitting alongside the controversial electric sports car. But now, it seems even that is one step too far, with Porsche reportedly reconsidering the model’s move to EV altogether.
According to “people familiar with the matter” speaking to Bloomberg, newly appointed Porsche Chief Executive Officer, Michael Leiters is considering scrapping plans to electrify the Porsche 718 lineup, including both the Cayman and Boxster models, due to development delays and rising costs.
The report adds that these decisions may also be caused by the company’s slow sales, especially in China. The company saw a 99% drop in operating profits due to a multitude of reasons, it says, including US import tariffs, internal organisational restructuring, and changes in its electrification strategy — the latter said to cost the company over EUR1.8 billion (approx. RM8.4 billion).
Deliberations for a plug-in hybrid (PHEV) powertrain for the 718 has only further complicated things, the report adds, as the next-generation 718 is developed on an EV platform. Adding a PHEV option would require completely new underpinnings — which would further delay its progress by years while potentially standing as outdated technology when the market demands ‘excitement’. Mind you, the model has already been in development for seven years.
ALSO READ: Porsche reports 99% drop in operating profits YTD Q3 2025
While scrapping the model altogether remains one option under consideration, no final decision has been made, Bloomberg reports. Leiters, who took over as Porsche CEO on January 1 from Oliver Blume, is under pressure to reduce spending while also addressing underutilised production capacity amid weaker-than-expected demand for Porsche’s newer EVs.
Of course, cancelling a model so late into its development would be an incredibly expensive endeavour. But at some point, it could be more economically viable to do so, given its projected demand for the model – and not fall for the sunk-cost fallacy.
RELATED: Looks like the next-gen Porsche 718 is getting a petrol engine after all
Porsche’s rethink on electrification extends across its wider lineup, from the Macan and Cayenne to its upcoming flagship D-segment three-row SUV, codenamed K1.
Initially planned as an EV-only model, the so-called “New D-SUV” was set to be underpinned by a redeveloped ‘Sport’ version of Volkswagen Group’s electric-only Scalable Systems Platform (SSP). However, following the recent strategic shift, the SUV is now expected to launch exclusively with petrol or PHEV powertrains instead.
For the ICE-powered 718, the company has also previously announced plans for “top ICE derivatives”. This opens the door for the return of hardcore variants such as the GT3, GT4, and potentially even RS models in the new generation. After Porsche enthusiasts mourned the discontinuation of the 718 last year amid fears of an all-electric future, it now appears there is far less to sulk on — and much more to be excited about.
ALSO READ: The all-new Porsche Cayenne Electric is more powerful than a Porsche 918 Spyder!
